How do you communicate to the team if there will be NO salary increase this year!

Hi Thuc,

I think it is NOT that hard to communicate this issue about No salary increase with your team especially this year.
Everyone knows what is going on in Vietnam this year, economic downturn, high inflation, financial crisis, stock market in Vietnam sliding down sharply on the slope and there is no sign of stopping, real estate frozen, US debt ceiling, EU finance capacity is about to burst, Japan hits hard with earthquake and Tsunami...etc. I mean the world economy is falling apart and all of those above mentioned is affecting everyone, from one way to another.

As business owner/manager, it is your obligation to address clearly and precisely about what is going on around the world and more importantly letting your team knows the company/team performance and the final turnover at the year end (and of course you have to deduct all fixed costs and operations costs). Remember, this action has to be honest, transparency and consistency. By doing this, each and every employee will know the reason why there will be No (or yes) salary increase for this year.

As for me, I think each and every employee should know that they are lucky if they still have a job thru this year and they should be "praying" for employer to keep them within. So just being honest with them of course continue to support and be there for them throughout, then I am 120% sure that they will understand.
Good luck.

A private company should never do that really. You lose the top guys, the average start looking for something else, the bad employee are all too happy to stay on and justify why they don't deliver next year. Some will get less, some will get more based on efforts and results. State owned communistic companies, all equal.

1- the Manager or CEO is responsible: why he did not deliver results? And what is next after the no-increase in 2011? A decrease in 2012 or being fired?
11- It is time for a reality check for the CEO and the managers on their responsibility, there is a crisis but some others have made the right move and increased market share, not us? Why?
12- It is also a reality check on the capacity of the managers to deliver on the message of hope. Does the boss know what to do next to get back to growth?
My friend started a production factory, 1- when sales went down, he gather every one and preaches hope. 2- The next year, borrowed money to compensate loss and preach more work and the markets in europe will peak up. 3- year 3, more borrowing to friends, more work, less staff. 4- year 4, lost his friends, employee strike and legal action, Tx after him, divorce losing children custody... A disaster.

The truth is he had no clue the real reason for decline, no idea how to fight that, no skill to get back on track, no intention to let othr people tell what to do "at age 50, I have succeeded in everything I did to the head of a big trading firm rep office in Vietnam. But also, he just lied to every one, not mentionning he did not know to built the ship, and elling them to aim for the blue sky while the ship and the captain could not make it

2- So now pick what you need to announce.
21- I have no idea what the future will be, love me follow me. No guarantee of any better future
22- I have a plan that is xxx, that can be done with people like Mr a, Mr B, who show attitude and aptitude, Mr X and Mr Z. Had to go, they did not help and could not. There salary will come to an increase for Mr. A and B. If our plan goes As I introduce to you the sacrifice of this year will be compensated by increase for all, take example on Mr A and B. 
I myself do not get an increase as a CEO, I did not create the growth to pay for my increase. The value of the shares have gone down, you can consider I am poorer now compared to last year.

Let's be positive, You will lose staff but gain loyalty