Dear All Seniors,
I am working in an MNC as an HR Lead. I want to know if there is any law or act regarding annual salary increments for employees. If such legislation exists, please inform me. If there is no specific law, how can I evaluate their performance for increments? Your assistance is appreciated.
Thank you,
Himangsu Das
From India, Bangalore
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1I am working in an MNC as an HR Lead. I want to know if there is any law or act regarding annual salary increments for employees. If such legislation exists, please inform me. If there is no specific law, how can I evaluate their performance for increments? Your assistance is appreciated.
Thank you,
Himangsu Das
From India, Bangalore
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Hi,
Different types of Appraisals, there is no law and act for Appraisal system.
1.360-Degree Feedback
A common performance appraisal method is the 360-degree feedback. In this scenario, whoever conducts the appraisal, such as a human resources manager, interviews an employee&,supervisor, peers and any direct reports. This technique allows an appraiser to gain a complete profile of the employee. In addition to gauging the worker&,job performance and technical skill set, an appraiser receives in-depth feedback on the employee's behavior. Measuring areas of subjectivity, such as character and leadership skills, allows an employer to manage an employee&,development.
2.Management By Objectives
Management by objectives (MBO) is another modern method of performance appraisal. This technique was first promoted in the 1950s by management theorist Peter Drucker. MBO requires a manager and employee to agree upon specific, obtainable objectives with a set deadline. For example, a sales manager may be required to increase his revenue by 25 percent within three months. Once this goal is set, the responsibility is on the sales manager to direct himself towards the objective. With this technique, success or failure is easily defined.
3.Ratings Scale
An alternate type of performance appraisal is the ratings scale. This methodology requires an employer to develop an in-depth grading system, similar to the way students in school are assessed. This scale is then used to evaluate an employee’s success within a variety of areas, such as technical skill set, teamwork and communication skills. There is typically a minimum required grade an employee must receive in order for the performance appraisal to be considered a success. Those that do not make the grade are often put on a performance improvement plan. This method is viewed by some management theorists as an egalitarian way of measuring individual performance.
4.CHECKLISTS
5.NARRATIVES
ESSAYS – CRITICAL INCIDENTS
6.Behaviorally Anchored Rating Scales (BARS).
BARS combine elements from critical incident and graphic rating scale approaches. The supervisor rates employees according to items on a numerical scale.
From India, Mumbai
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Different types of Appraisals, there is no law and act for Appraisal system.
1.360-Degree Feedback
A common performance appraisal method is the 360-degree feedback. In this scenario, whoever conducts the appraisal, such as a human resources manager, interviews an employee&,supervisor, peers and any direct reports. This technique allows an appraiser to gain a complete profile of the employee. In addition to gauging the worker&,job performance and technical skill set, an appraiser receives in-depth feedback on the employee's behavior. Measuring areas of subjectivity, such as character and leadership skills, allows an employer to manage an employee&,development.
2.Management By Objectives
Management by objectives (MBO) is another modern method of performance appraisal. This technique was first promoted in the 1950s by management theorist Peter Drucker. MBO requires a manager and employee to agree upon specific, obtainable objectives with a set deadline. For example, a sales manager may be required to increase his revenue by 25 percent within three months. Once this goal is set, the responsibility is on the sales manager to direct himself towards the objective. With this technique, success or failure is easily defined.
3.Ratings Scale
An alternate type of performance appraisal is the ratings scale. This methodology requires an employer to develop an in-depth grading system, similar to the way students in school are assessed. This scale is then used to evaluate an employee’s success within a variety of areas, such as technical skill set, teamwork and communication skills. There is typically a minimum required grade an employee must receive in order for the performance appraisal to be considered a success. Those that do not make the grade are often put on a performance improvement plan. This method is viewed by some management theorists as an egalitarian way of measuring individual performance.
4.CHECKLISTS
5.NARRATIVES
ESSAYS – CRITICAL INCIDENTS
6.Behaviorally Anchored Rating Scales (BARS).
BARS combine elements from critical incident and graphic rating scale approaches. The supervisor rates employees according to items on a numerical scale.
From India, Mumbai
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There is no law on this It is the prerogative if the management to decide on salary to be given and increments, so long as the salary is higher than minimum wages.
From India, Mumbai
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From India, Mumbai
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Hi,
Along with all the above-mentioned suggestions, make it clear for all the employees that hikes are not mandatory after appraisals. An appraisal process indirectly manages the employees' performance. Hikes/increments in salary are directly related to the team's and project's performance, as well as the account, business unit, and profit, along with individual performance during the appraisal period, which includes all the management objectives and KRAs.
Since you are working with an MNC, they will have a specified formula to calculate and measure the hikes, along with a predefined performance management system. You may need to consult with your seniors upon the implementation of performance appraisals.
From India
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Along with all the above-mentioned suggestions, make it clear for all the employees that hikes are not mandatory after appraisals. An appraisal process indirectly manages the employees' performance. Hikes/increments in salary are directly related to the team's and project's performance, as well as the account, business unit, and profit, along with individual performance during the appraisal period, which includes all the management objectives and KRAs.
Since you are working with an MNC, they will have a specified formula to calculate and measure the hikes, along with a predefined performance management system. You may need to consult with your seniors upon the implementation of performance appraisals.
From India
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Dear Himangsu Das,
As an HR professional, my suggestion is that before delving into the performance appraisal system, it is crucial to align our human resources with the mission, vision, and direction of the company. Define Key Result Areas (KRAs) for each individual and establish goals/targets accordingly to contribute to the company's growth. Please note that performance appraisal does not guarantee a salary increment or hike. It is solely based on an employee's work performance and the KRAs defined by the company, as well as the contribution made to the company's growth.
Thank you.
From India, Surat
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As an HR professional, my suggestion is that before delving into the performance appraisal system, it is crucial to align our human resources with the mission, vision, and direction of the company. Define Key Result Areas (KRAs) for each individual and establish goals/targets accordingly to contribute to the company's growth. Please note that performance appraisal does not guarantee a salary increment or hike. It is solely based on an employee's work performance and the KRAs defined by the company, as well as the contribution made to the company's growth.
Thank you.
From India, Surat
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There is no labor enactment for annual increments. Every organization conducts this exercise according to their own performance appraisal policy, annual increment policy, or compensation hike policy. The awarding of annual increments varies from company to company based on the size of employees.
As an HR lead, you need to outline a policy that best fits your organization. Develop a detailed policy and implement it accordingly. It is suggested that annual increments be linked to employees' job performance to involve colleagues from different departments in the process of the performance appraisal system.
Thanks,
R K Nair
From India, Aizawl
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As an HR lead, you need to outline a policy that best fits your organization. Develop a detailed policy and implement it accordingly. It is suggested that annual increments be linked to employees' job performance to involve colleagues from different departments in the process of the performance appraisal system.
Thanks,
R K Nair
From India, Aizawl
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Dear Himangsu,
Your query: "I am working in an MNC as an HR Lead. I want to know if there is any type of law or act for the increment of salary every year for the employees. If there is anything, please let me know. Even if there is no act or law, how can I evaluate their performance appraisal for an increment? Please help."
Position: Except for the Minimum Wages Act, the Payment of Wages Act, and the judicial pronouncements in cases of denial of propriety, justice, and fairness that touch upon the issue/subject of increment in wage or salary, there exists, as of today, no law or act on the subject.
Fixing wages/salary for employed persons is the employer's prerogative, exercised only by the employers/managements. At times, employers/management are, on their volition, open to negotiation with workers' representative trade unions or such other lawful bodies considering the organization's sustainability.
Regarding granting increments, it is advisable for employers/managements to remain transparent, ethical, impartial, fair to the people, and true to the cause (sake of more profits/profitability/2 ROIs).
You may adopt a scheme suitable for your business sustainability while concurrently promoting the wellbeing of all stakeholders.
Kritarth Advisory Team
11th September 2014
From India, Delhi
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Your query: "I am working in an MNC as an HR Lead. I want to know if there is any type of law or act for the increment of salary every year for the employees. If there is anything, please let me know. Even if there is no act or law, how can I evaluate their performance appraisal for an increment? Please help."
Position: Except for the Minimum Wages Act, the Payment of Wages Act, and the judicial pronouncements in cases of denial of propriety, justice, and fairness that touch upon the issue/subject of increment in wage or salary, there exists, as of today, no law or act on the subject.
Fixing wages/salary for employed persons is the employer's prerogative, exercised only by the employers/managements. At times, employers/management are, on their volition, open to negotiation with workers' representative trade unions or such other lawful bodies considering the organization's sustainability.
Regarding granting increments, it is advisable for employers/managements to remain transparent, ethical, impartial, fair to the people, and true to the cause (sake of more profits/profitability/2 ROIs).
You may adopt a scheme suitable for your business sustainability while concurrently promoting the wellbeing of all stakeholders.
Kritarth Advisory Team
11th September 2014
From India, Delhi
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As regards the increment of salary every year, the question is addressed at the time of appointment. You should have a clear statement in the appointment order indicating the annual increment based on performance or salary enhancement. This resolves the question.
All other criteria such as motivation, promotion, pay fixation, and work performance are interrelated. The efficiency and performance in alignment with the tasks undertaken above the standard pay increment are the most beneficial. Employees develop themselves in line with organizational progress.
Therefore, the minimum wage/salary increment is explicitly stated in the appointment itself. This reiterates the minimum wage/salary increment.
From India, Arcot
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All other criteria such as motivation, promotion, pay fixation, and work performance are interrelated. The efficiency and performance in alignment with the tasks undertaken above the standard pay increment are the most beneficial. Employees develop themselves in line with organizational progress.
Therefore, the minimum wage/salary increment is explicitly stated in the appointment itself. This reiterates the minimum wage/salary increment.
From India, Arcot
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Hi there,
Please find attached the thread with a PDF sample of the Increment Policy:
- [Increment Policy PDF Sample](http://www.lboro.com/media/wwwlboroacuk/content/humanresources/downloads/increment.pdf)
- [Google Search for Increment Policy](https://www.google.com/#q=Increment+Policy)
Regards
From Oman, Muscat
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Please find attached the thread with a PDF sample of the Increment Policy:
- [Increment Policy PDF Sample](http://www.lboro.com/media/wwwlboroacuk/content/humanresources/downloads/increment.pdf)
- [Google Search for Increment Policy](https://www.google.com/#q=Increment+Policy)
Regards
From Oman, Muscat
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As per the law, increment is applicable for worker grades, which we know as the revision of minimum wages every six months in all industries.
For staff, the increment will depend on performance basis and internal company policy. Nowadays, we see incentive policies established in many organizations to boost morale.
To the best of my knowledge, there is something in the law applicable to decrement. If there is a decrease in any circumstances, can any employee take legal action or not? Please advise your views.
Thanks & Regards,
Keshav
Recruitment Manager
Tejomay Services
From India, Delhi
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For staff, the increment will depend on performance basis and internal company policy. Nowadays, we see incentive policies established in many organizations to boost morale.
To the best of my knowledge, there is something in the law applicable to decrement. If there is a decrease in any circumstances, can any employee take legal action or not? Please advise your views.
Thanks & Regards,
Keshav
Recruitment Manager
Tejomay Services
From India, Delhi
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