crunchyg:

And you think companies doesn't have right to change policy if the old policy is not favouring them, Oga the recession in the land has caused a lot of restructuring in companies in order for them to survive

wolesmile:

Most companies do this because prey on their staff's ignorance. The staff on their part, accepts the bullshit, either through ignorance, or fear. Do you even know the implication of putting work condition in writing and signed by the Head HR? If any part of their remuneration is to be changed, it ought to be communicated in writing, and signed by all.

infoblaster:
Hello everyone,

Am here to seek experts advise on an issue that is really giving everyone of us involved concerned.

I work in a service industry that provides a very important product to a vast numbers of customers within the industry.

Due to problems usually faced in getting revenue sales, the company adopted a performance based remuneration system recently that ensures that salaries are paid to employees based on what their stations makes as revenue vis-à-vis percentage of revenue generated against target given.

With this system in place, monthly salaries dropped drastically and pay day that usually ought to be a happy day for everyone now turned into a day of sadness because of unrealistic targets sets for everyone/stations upon which ones salaries are based on.

Recently, some months payslips were given to all staff, it was revealed that we no longer have a basic salary, assuming your monthly performance is 60%, every component of your salary will be paid on 60%. Should it be 40%, that means every component of your salary will be calculated based on 40%!

My question now is, in an environment where performance-based remuneration is in place, are basic salary and pension deductions also subject to performance? Pension deductions that should be our future is also subjected to monthly performance.

HR gurus in the house and folks familiar with performance-based remuneration, please share your thoughts on this.

CC. Mods, please do me a great help by kindly pushing this to front page.

Thanks

crunchyg:

How did you know it wasn't communicated in writing and signed by all. The op was only complaining of the new reality in the company not that they were not informed that this is now the new policy

HRtechnique:
Interesting...
From learning, when we talk about best practices, it is believed that it is a practice that an organization feels is best for them without going against any labor law.
As long as an organization is not going against the law, it is either the employee agrees to the new policy or resign from it....

IamaNigerianGuy:


HRtechnique: you have failed to give an acceptable and true definition of 'best practice'. Conjuring standards from thin air to suit the whims and caprices of management and business owners is the reason why Nigerian businesses sector is backward. Taking advantage of lax laws is in no way best practice.

Best practice refers to standard acceptable procedure in an industry that is legal, ethical and fair, and which contribute to effectively and efficiently meeting a company's objectives by aiding it's operations.

olumzzz:
ismokeweed

infoblaster:
Hello everyone,

Am here to seek experts advise on an issue that is really giving everyone of us involved concerned.

I work in a service industry that provides a very important product to a vast numbers of customers within the industry.

Due to problems usually faced in getting revenue sales, the company adopted a performance based remuneration system recently that ensures that salaries are paid to employees based on what their stations makes as revenue vis-à-vis percentage of revenue generated against target given.

With this system in place, monthly salaries dropped drastically and pay day that usually ought to be a happy day for everyone now turned into a day of sadness because of unrealistic targets sets for everyone/stations upon which ones salaries are based on.

Recently, some months payslips were given to all staff, it was revealed that we no longer have a basic salary, assuming your monthly performance is 60%, every component of your salary will be paid on 60%. Should it be 40%, that means every component of your salary will be calculated based on 40%!

My question now is, in an environment where performance-based remuneration is in place, are basic salary and pension deductions also subject to performance? Pension deductions that should be our future is also subjected to monthly performance.

HR gurus in the house and folks familiar with performance-based remuneration, please share your thoughts on this.

CC. Mods, please do me a great help by kindly pushing this to front page.

Thanks

ismokeweed:

IamaNigerianGuy:


Performance-based remuneration is good but it must be done in a way that the staff won't be at the receiving end just as I have in my place

HRtechnique: you have failed to give an acceptable and true definition of 'best practice'. Conjuring standards from thin air to suit the whims and caprices of management and business owners is the reason why Nigerian businesses sector is backward. Taking advantage of lax laws is in no way best practice.

Best practice refers to standard acceptable procedure in an industry that is legal, ethical and fair, and which contribute to effectively and efficiently meeting a company's objectives by aiding it's operations.

Back to the OPs question: there is nothing wing with performance based enumeration. In fact, there is everything right with it: this is the model most large companies and multinationals employ with their staff.
Two points to note: first, you must be paid a base salary. This must be commensurate with your position, experience and job load. Second, the renumeration for meeting targets must be consistently applied. If you exceed expectations by 300%, you should be paid a 300% bonus. There are variations on this but this can serve as a template. Any substantial deviation from this implies you are working for an exploitative management.