If you are a manager or the head of a company writing to inform your staff of a salary deduction, there are a number of features you must include:
Nobody will be happy about having their salary reduced, but using polite, apologetic language will help to minimize the anger or upset caused by this setback. For example, instead of writing "your salary will be reduced" try a sentence such as "it is with the utmost regret that I inform you that your salary will be reduced".
- Specific facts and figures
In order to make the process of reducing salaries as smooth and problem-free as possible, ensure that each member of staff is well-informed about the reduction. In the letter, include all the facts, numbers and dates that are relevant to the salary reduction. For example, a phrase such as "your salary will be reduced" should be replaced with a phrase such as "your monthly salary will be reduced by 7.5%, effective from the 30th September.
- Acknowledgment of responsibility
As the head of the company or a team manager, it is poor workmanship to pass the blame on to somebody else, or to deny responsibility for this wage reduction - even if it isn't your fault, as the senior member of the company, you have a duty to your staff to take the appropriate action. Therefore, a phrase such as "the recent economic downturn has hit this company hard, and in order to minimize job losses and maximize economic recovery, a reduction in your salary is unfortunately necessary" is appropriate.
Emphasize that you hope that the reduction in salary is only temporary, and that when the fortunes of the company improve, you plan to put the wages back up (however, you should only include this if you actually do plan on returning the wages to their previous rate - if you don't, but choose to lie in the letter, there could be legal implications). A phrase such as "we will continue to monitor the economic fortunes of the company, and as soon as it is appropriate, we hope to be able to return your wages to their previous rate" is suitable.
