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How to mitigate attrition post salary increase communication?

You must have heard leaders and talent team discussing the possible increase of attrition post communication of yearly salary increase. Their fear is not unreasonable. We know that there is a high chance of an increase in attrition post yearly salary increase. People do wait for their salary raises and then try for a job change to get higher salary raise over it. It is always a challenge for business and organization.

But, there are ways, an organization can mitigate this impact. I am suggesting some ways which will help. In my opinion, managers and leaders of the organization need to play a more active role in such cases.

Continuous dialogue

When an employee raises his/her concern on the salary increase, it is important that the manager continues the dialogue with the employee and make sure that the employee is given the opportunity to listen. Many employees feel disheartened when they don’t see their managers even bothered about their dis-satisfaction hence becomes a key reason for them to look for a change. A Manager should have meetings with such employee(s) for the next 2-4 weeks to gauge the engagement of the employee and get engaged in dialogue.

During these interactions, managers should speak with such employees on his/her career development plan so that employees can achieve its career target both short term and long term. Managers should also speak about ways manager and organization can help employees in its development path. Both the manager and employee should build the IDP (Individual Development Plan) for the employee.

Interaction with leaders

An Interaction with leaders of the organization of such employee is equally important. Employee wishes to hear from their leaders too. Such interactions tell the employee that the leaders of the organization is aware of his/her concern and affirms the intent of the organization to invest in their people.

An honest investment on people and follow-ups

Having a conversation with the employee by manager and leader is the first stage where both try to neutralize the dissatisfaction of the employee just after the communication on the salary increase.

In stage two, the manager and organization should follow up and put an honest effort to invest in the development of these people. The manager should review their IDPs (Individual Development Plan) on a quarterly basis and discuss progress and the support the employee might need.

Above initiatives might not stop attrition completely, but will help in reducing the impact by half.

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