I guess many other business may experience the same situation to share
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Wow great and tough question, Thuc :)
Bono (the lead singer for the band U2 that does a lot of charity work) once asked Warren Buffet how he could inspire the American people to give to his campaign to save AIDS victims in Africa. Warren Buffet answered "Appeal to the greatness and not the guilt of the American people." In other words, don't communicate the people to feel they have to give (or must accept what you are saying) but ask so they want to give voluntarily. (or understand and want to take responsibility with you)
This question will depend on the culture the leader desires to build in the team. A carrot & stick culture will always fous on rewards and punishment but a visionary culture will always focus on meaning and purpose. I understand this is not easy for many organizations but this principle is not new. Bac Ho himself was a visionary leader who had nothing but was able to lead the people to freedom.
This quote contains the principle - "If you want to build a ship, don't drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea." - Antoine de Saint Exupery
To communicate the vision, the leader should answer these 5 questions in the mind of the followers:
1. Where are we going?
2. Why are we going there?
3. How are we getting there?
4. What's my responsibility?
5. What's my reward?
If #1-4 are communicated clearly and there is a good reason why there are no salary increases, the team should be able to understand, accept and take action. It is better to communicate transparently that we are going through tough times and need to focus on achieving our goals. The team will be given the opportunity to take responsibility for the situation.
To be creative, if we cannot promise salary increment, are there are rewards that we could aim for? Money is important but is it definitely not the most important. Team members want to be recognized, appreciated and to be part of something meaningful. Giving to a charity, supporting an orphan, special day off, going for a training workshop or asking team members to create their own rewards are just a few of unlimited possibilities to reward the team and each individual.
Hope this helps and sorry if it's not what you're looking for :D1312875654hZWVnJ1jmW-YmpaExaBkb-GkoGOYcFLJpMWoq4DHo5ifmatXc6xsm2pTcdGrrZenVW7VbW6eUp3Zppeky9TSg5_XnJeYaoOgydel0tHTlqPad9Wk01hr2XKab1qox6eVoKdbcJlzY5-rpGqccliTo6aqx6WVzZRZn6tuY5yHmJiVhp3j4Q..
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.
- Anphabe ExpertPascal Ho Ba Dam
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 loyalty1316333792hZWVnJ1jmW-YmpaExaBkb-GkoGOYcFLJpMWoq4DHo5ifmatXc6xsm2pTcdGrrZenVW7VbW6eUp3Zppeky9TSg5_XnJeYaoOgydel0tHTlqPad9Wk01hr2XKab1qox6eVoKdbcJlzY5-rpGqccliTo6aqx6WVzZRZn6tuZJyHlZaclYSh4a0.
Good news, old chaps! They want to downsize us but I convince them everyone here is essential to business and absolutely not for firing. They agree with me.
Bad news is no Raise this year. It's a spot of bother. Ah well.1331289806hZWVnJ1jmW-YmpaExaBkb-GkoGOYcFLJpMWoq4DHo5ifmatXc6xsm2pTcdGrrZenVW7VbW6eUp3Zppeky9TSg5_XnJeYaoOgydel0tHTlqPad9Wk01hr2XKab1qox6eVoKdbcJlzY5-rpGqccliTo6aqx6WVzZRZn6tuZJyHm5KXmoSh4a0.