Organizations that thrive are those that give utmost priority to the welfare of their employees. This is a widely acceptable concept in the field of human resource management.The human resource is perhaps the most vital component of any organization. Any failure by the management to promptly address matters touching on the welfare of the employees is likely to result in reduced productivity from the employees. It goes without question that reduced productivity from employees is in turn likely to severely dent an organization’s profit making ability. The focus of this memo is on the welfare of employees. It specifically seeks to highlight matters to do with employee compensation. The memo will be highlighting the fact that there exists serious discrepancies and malpractices in the organization as far as matters of compensation of employees are involved.
Indeed, one of the Holy Writ posits that he who does not work should not eat. It appears that the organization seems to have adopted such an attitude when it comes to matters of employee compensation. However, it is contended that adopting such a position where people actually sweat their brows off working for the organization is unacceptable. This concern arises from the fact the organization no longer pays employees for the hours they work overtime.By doing this, it appears that the organization is acting in contravention of its own rules. These rules provide that it will compensate employees for any hours they work above what is stipulated in their contracts of employment. By extension, the organization is flouting the laws of the land as a contract of whichever kind is an agreement which is legally enforceable. Among other things, this memo seeks to forestall the possible scenario of this matter ending up in court. It goes without question that the nature of work in this organization calls for putting in extra hours. This is something which the employees have dutifully and gladly done. It is therefore unfair for the organization to fail to keep its end of the bargain. If not addressed, this issue is bound to have a boomerang effect on the organization. I am certain that none of the stakeholders of the organization would like to find themselves in the resultant crisis that may arise in the event the organization does not take any action to remedy this situation.
There is also need for an urgent review of the employees’ salaries. Indeed, one of the major symptoms of this has been the rapid and increasing hemorrhage of employees from the organization. Such employees have moved to organizations where the grass is greener. It is a well-known fact in the organization that the last time it reviewed the salaries of its employees was five years ago. It can be hardly be the case that the amounts which one used to sustain himself or herself then would suffice for such a person to sustain themselves now. The cost of living has gone up due to such factors as inflation and most of the employees now survive on a shoestring budget. Other employees have resorted to looking for alternative means to raise extra income. This has consequently eaten into the effort they put in their work in the organization. One can also not be rule out the fact that this is one the greatest contributors to reduced productivity in the organization.
The organization must also embark on a salary harmonization process. This is among the recommendations advanced in this memo. It is unfair to give employees different salaries yet they are in the same job level or do same kind of work. Employees who have the same set of skills and do the same kind of work should be given equal pay. It is unfair and unethical for one employee to be paid more than the other yet they perform similar duties.It is incumbent upon the organization to stick to its policy when it comes to matters of overtime. This memo consequently recommends that the organization should immediately resume paying employees their overtime allowance. Additionally, given that the records are available, the organization should backdate the payment of these allowances to capture all the overtime hours that employees worked but did not receive their due pay.
The singular most important recommendation that this memo makes is an urgent review and consequent increase of the employees’ pay. The employees should be paid at the same rates their equivalents in the industry are paid. The pay structure must also be overhauled. It should be replaced with one that embraces international best practices when it comes to matters of compensating employees. In addition, the organization must put in placemechanisms that ensure that employees receive annual salary increments so as to keep up with inflation. The current practice where this has been selectively should cease. It is unfair that managers always receive annual increments in their salaries yet the salaries of employees have stagnated for the last five years.
In conclusion, an organization can be likened to a system comprising of several components. When one component fails, this is bound to affect the entire system. It is for this reason that the organization must urgently address matters raised in this memo; the employees are an invaluable component of this system.
Antoncic, J. A., & Antoncic, B. (2010). Employee Compensation, Corporate Entrepreneurship and Growth of Companies in Service Industries. University of Primorska Management Journal, Vol 5(Issue 2), 115-130.
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