No salary adjustment until you’ve resigned?
I’ve just got my salary increment letter few days ago. I’m happy but not to the state of jumping up and down around the office. At least, it’s better than my expectation especially during such difficult period of time when most companies (mine included) are not doing that well.
However, some of my friends are not pleased with their increment. I only told them that they should talk to the bosses if they’re not happy with it. Maybe together, they can come out with a solution.
Hmm, the thing is, there are some companies I’ve heard of, which don’t give people much pay raise until the day they give their resignation letter. Then the boss will start to panic, and will ask the person for an emergency meeting. They will sit down and the boss will say….
Boss : How much did they offer you?
Victim : RM xxxx per month
Boss : Hmm….what if I counter offer you?
Victim : ……..
Boss : 10% more than your current
Victim : but the new pay is 20% more
Boss : Ok, i’ll pay you the same as the new offer.
The thing is, normally people leave it’s because the new job offers more (in terms of prospects, excitement and money). In this case, let’s talk about the “money” part. There are a lot of companies who don’t give increment to employees (or minimal increment). It happened to me once. The company did not give me any increment, and gave me a RM 75 bonus. I was so furious since I’ve worked 12 hours a day for them (minimum) and my performance review was very good. So i found a job which paid me 20% more. When I resigned, my manager said she wanted to counter offer me with the same amount. I said why didn’t the company do that earlier. In the end, I rejected even though the updated salary (after the counter) was higher than the new salary.
The thing is, employers should try to retain their employees WHILE they (the employees) are still in the company and not when they’ve resigned. Furthermore, what’s the point of keeping an employee who has already set his mind on leaving? It’s better to keep the loyal and good employees.
Just my opinion anyway. But well……sadly…..you’ll get to see a lot of such incidents in Malaysia companies.
I guess employers will take advantage and keep quiet if you remain there. It’s only when they are losing you that they will do something about it. I got a feeling even if the employee takes up the counter offer, he or she won’t continue to see decent increments until he/she resigns again!
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@ Penny
Exactly. That’s what most companies are doing. It’s either they are too busy to care, or they’re acting stupid. I think..the latter makes more sense.
Some employers probably think that’s a good way to get rid of non-performing empoyees. If you’re bad one, they just let you go!!! Good ones, they counter-offer. But it backfires… the bad ones die die also won’t resign. hahaha.
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@ LC Teh
True, because the bad ones couldn’t find another job outside
Congrates! Exactly, many companies just “keep quiet”, as if the employees don’t care about increment. It’s also true that some don’t dare to ask for increment, afraid of losing job or back stab after that. A good company should have quarterly review, to adjust the salary accordingly. It’s a good way to appraise the performance and motivate their employees. In the end of the day, productivity of a company is still depends on the workers!
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@ ingchia
Thanks! A review twice a year is actually good enough. Quarterly is ok depending on the culture of the company because sometimes, people just don’t have that many things to review.
Many companies have boasted that they have so and so employee retainment policy in place, but most of them are just talking nonsense and most of them have very high turnover rate in their company.
Here’s an employer’s point of view. If I give you a $50 annual increment and you still accept and stick around, it means you’ve accepted. In my warped perspective, you’re satisfied.
If the company needs you more than you need it, you can play poker and see who blinks first. But until you tender your letter, there’s a 90% probability you will lose. The only way to win is when you know its cheaper for them to give you you what you want than find a replacement, AND your boss knows he will be whacked by the directors for incurring that cost.
Actually this behavior is not limited to employers. When it comes to expenses, people like to wait until a problem happens before they spend. People do that with their cars and properties. Employers do that to their staff and assets.
Of course they won’t do that, unless it’s really necessary for them, desperate measures. It’s a harsh world out there.
@ Damien
…unless…your departure might make the companny lose a million dollar project. 
I think most bosses would play the poker face game and keep quiet until the day you cannot stand anymore…They’re just waiting for you to voice out, and they will give you 50% of what you wanted… and if you’re not happy, then maybe, they will counter offer you. Or they just dont care. After all, they can always find a replacement elsewhere, for a cheaper price. Most bosses don’t care how important you are
@ seaqueen00
Maybe when I become my own boss, i would do the same too.
Yea, sad to say, most bosses are like that
Well, if you constantly remind yourself of your previous experiences you wouldn’t do that when you’re a boss.
@ seaqueen00
Might be forced to change due to circumstances. We never know
I’ve once had this problem with my previous employer.
working 2 years there with a very small increment plus no bonus at all..
what kind of company is this? 1st year – ok.., maybe I wait a bit.., but 2nd year? ah.. it’s my que to go..! start my hunt..! got a new job with more than double the salary i received there..
now happy here.., but after 6th years.. your butt will start itchy wanna try new thing.. new environment.. new gf.. and so on laa!
with that in mind.. i’m on a hunt now.., but as you highlighted in your title article above.., it’s not so easy to make such decision nowadays.. company a shedding fat.., trim down.. streamlined operation..
so my criteria to move to new co – must be mnc, or established local co, salary at least – 30-40% higher.., look into benefit also.., bonus.., housing, transport allowance.
@ morpheuzneo
I think it’s better to look at the job prospect and also the direction the company is moving to, rather than focusing on the money and benefits. Those 2 are important but nothing beats a more satisfying job. You wouldn’t want to spend your life doing photostating stuff even if the pay is extremely good.
MNCs are not known to give housing allowance, except for banks. Travel allowance, yes, some of them like SHELL. But mostly don’t. Other than that, MNCs do give good benefits. Pay, also higher, but the increment is about 5% in average. Not that much to be honest, unless you’re able to fight for promotion or adjustment.
hello sir
i want a resignation letter in details form becoz after my request, managing committee not increase my salary in my expaction and work load is increase in comparision of earler
thank you
with regards
jai
@jai
Sorry but i don quite get your question. You want to resign because the company never gives you the salary increment you wanted?