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Employee Rewards, Remuneration and Leaders

Do you have employees approaching you for pay rises when their expenses are increasing? Happens to me all the time despite a well laid out HR policy regarding increments and appraisals. Requests for salary raise are made by employees without understanding that the remuneration paid to them is for work done and it has nothing to do with the fact that they are increasing members in their families or buying a new car.


When do companies move employees up the value chain by promoting their profiles or increasing their remuneration is actually only dependent on the performance of the period gone by and not of the promise made to be delivered in the coming period. 
Whether you have this authority or not, promotions and raises need to be part of an ongoing discussion with employees about their performance. It is crucial to  make these decisions about promotions and raises  very carefully.We should recognize that who we reward sends a signal to the rest of the organization. We need to be sure we are endorsing behavior that is in line with the organization's values. For example, an employee who exceeds his targets but treats his team members poorly should not be rewarded in an organization that values teamwork.the way an organization promotes people has implications for an individual's success. Organizations often assume that a promotion should involve giving star performers responsibility for managing more people and developing — rather than just executing — strategy. This may not be the correct measure for an organizational development process because most time a high performer may not be able to develop an operational overall view of the organization just because of his performance. Leaders have to be recognized on the basis of their temperament and their ability to learn and deliver the results rather than just their age and seniority. 

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