Planning and Executing a Salary Appraisal in an SME traditionally paying lower than market trend and losing people

continuously…(my answer to a question in linkedin.com)
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A major problem of SME entrepreneurs is the retention of good people. Obviously, salary is a key factor. However, a good salary again does not ensure retention. People like to see their growth prospects, over 5 to 10 years. Many times the excitement the entrepreneur feels is not felt by the individual employee. They also evaluate the value addition to themselves professionally even over a longer time period. The third major factor is the prospect of wealth creation: "salary" is fine, but how do I become 'rich'. This means ways of creating performance-based partners, rather than just 'employees'. The SME needs to be a credible entity within, a lot more in action and in continuous sharing of information, to convince people that they have a future in the company, professionally and personally.

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Raju Swamy Principal Consultant & Advisor to Entrepreneurs & Family Business PROMAG Consultancy Services Apt. 206 Brigade Rathna 42 Ranga Rao Road Shankarapuram Bangalore - 560004 INDIA Tel. +91-80-26676298/ Cell: 9845271498 Email: rajupromag@hotmail.com

Promoting Management Action for Growth…. since 1985

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