Salary Appraisal Query

Hi ,

Please forward me layout for Salary Appraisal which can be maintained by HR executive , it should specify salary increased in past years and current with complete employee details.
According to an appointment letter the salary of an employee is reviewed in January every year, if the employee joins in Oct/Nov will his salary be revised in Jan next year?

If the company is increasing the salary based on slabs , there are 2 employees one is performing good &other is average. Now the person who is performing average , just to bring him in one slab his salary is increased more then the person performing good. How can we convince the good performer why his salary is increased less, if we explain his the slab thing he is not convinced and we can not use a good employee. What should we do in such case?

Hai Shweta,

Pl note that salary slab is most sensitive area and we can only follow and cannot make any modifications.

Generally when an employee completes his training period, based on his performance, he will be put under probation with salary slab. If an employee joins in probation and completes the same based on his performance appraisal from dept head, he may be confimed without any increase in his salary. In that context, he will have due for performance appraisal from one year to date of Probation, and based on performance appraisal, the confirmed employee will get salary with or without promotion.

Secondly, please note that majority of the companies maintain confidentiality about employees salary and even an employee cannot know his coleagues salary. For the Organisation, it has to retain the Good, Better and Best Employees.

The Organisation will discuss with the concerned department heads and based on the appraisal it will give no of increments / salary hikes mostly at the time of performance appraisal. Normally, the low performers will be given single or no increment or no hike at the time of performance appraisal and the same may be explained to them so that they will know and start performing duties.

I request you pl verify the salary slabs and try to make use of them in a proper way to your persent situation with the approval of both department heads and ur hr manager. But pl note that change in salary slabs will create more problems and instead of positives u may face negatives.

Regards

PB Ram Swaroop

Thanks for your sharing

But advice how can we retain the good employees as appraisal due to slabs might create some problems. Also can you help me out in forming a questionnaire to get feedback from employees regarding company, problem if any they are facing, what are their thoughts regarding their work atmosphere etc

Please find with some suggestions on your queries:
1. If the employee joins in the month of Oct/Nov and the company's annual salary increment cycle is in the month of Jan, then it is not advisable to provide salary increment as it will be too early to judge and secondly that would be the time when his probation confirmation will be due. If your company has a policy of providing salary increment on confirmation then you can probably do it but as far as the annual increment is concerned it is not advisable.

2. Salary increments should be based on the following factors :
a. Individual Performance
b. Company Performance
c. External factors like inflation/ market adjustments.etc...

I think you need to reconsider your salary grades and bands, what i understand from your query is that the average performer and the performer are from the same job position and have similar education, experience and skill sets...

If they have similar education, experience and skill sets, the average performers salary being more than the performers salary would surely demotivate the performer, your salary bands should be designed in such a way that the average performer and star performer with similar competencies should fall in same band & grade, but the start performer should still be getting more salary than the average performer....

Please let me know if this has solved your query... or let me know if yo need any further information.

Dear Shweta,

Salaries are planned to keep some percent as performance linked too. Also depends a lot on salary negotiated by an employee during joining. Even if people join in the same band they join at different salaries. Consider as I have explained below:

Employees A & B have same education,skills and experience have joined in the same band with salary range of 4 - 6 Lakh per annum.

Employee A is a performer with joining salary as 4.5Lakh

Employee B a non performer negotiated well and joined at 5L per annum.

The performance is appraised in 1 year and distinguished the performer and non performer.

If you have set aside 20% of the CTC linked to performance (PLS) then there could be a case where A gets 20% full as a recognition of his performance and B gets zero.

So which means A gets his full salary(4.5L) and B gets 4Lakh in effect. Also give a special recognition letter to the performer.So you keep the performer motivated and also non performer is warned to improve or quit.

Salaries as a rule are kept strictly confidential.

Companies terminate employees who discuss their salaries in public. So discourage any one who comes up to HR desk with a logic that the other person is getting more than me etc...you also need to explain it depends on the joining salary,the person is hired from which company, academic performance etc, interview is not always successful in differentiating a performer to non performer.

But if you stay with the company then you will definitely be recognised and rewarded for your performance.

Thanks

Geeta

Dear Geeta,
You answer is not practically applicable regarding A & B option,in this modern age everybody wanted some increamennt,it should be less but not neglegible.
Best Regards
Sajid Ansari

True everyone wants an increament and i am facing the same problem
as i am new to this field making an employ understand the slabs, performance etc is tough for me
please can you help me out how shd we convince them

Hi,
I just gave extreme of the two cases, one has to work out in between like you may give somewhat less percentage of increment too.
Your compensation relative to performance (PLS) can be like
Star performer : full + X% reward (you may decide your percentile variables)
Meeting expectations: Full
Average performer: Full - X%
Poor performer: No variable incentive (Indirectly asking to look for other options)
These are only hints; one has to make the options tailor made only depending on their own requirement and feasibility.
And in all cases there may be chances you need to support your actions with proper data from appraisals, counselling,mentoring ,recognition letters or warnings etc..
In a broader sense your compensation policy may clearly spell out depending on the performance level what percentage of PLS is given to employees. So not every one will come up to you asking for an explanation.
Thanks
Geeta

Hi,
The performance appraisal itself denotes that appraisal should be based on performance. How can you give same increment for two persons with different performance. The appraisal should be made on criteria of performacne, for eg. Average, Above average, Outstanding, and increment can be given as a percentage (%) based on the criteria to which the employee falls. In this way you can motivate the employee to improve his performance.