Good Evening,
I work for 100 plus employee company. We just completed our performance appraisal process and working on promotion criteria. I have received huge promotion recommendation from all departmental heads (HOD) and even after doing normalization rating (attendance, time factor, salary level), rate of promotion is very high (40%). Is this is normal?
I somehow feel that if we give so many promotions every year, the value of promotion goes down and rate of people at top level goes up. Since we are a small organization, there can only be title change after promotion and their role will remain the same.
I do understand that we need to recognize & reward people for thier valuable & outstanding contribuitions but is this is the only way to recognize them? Why do managers feel that if they do not promote a person s/he will quit job and organization will suffer?
I just want to understand from all my seniors as to is there any promotion percentages followed in industry to provide a healthy and respectable recognition and what are the other criteria’s that need to be considered for promoting a person (other than factors mentioned above).
Your inputs will make great difference…
Regards,
Laks.
From India, Bangalore
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1I work for 100 plus employee company. We just completed our performance appraisal process and working on promotion criteria. I have received huge promotion recommendation from all departmental heads (HOD) and even after doing normalization rating (attendance, time factor, salary level), rate of promotion is very high (40%). Is this is normal?
I somehow feel that if we give so many promotions every year, the value of promotion goes down and rate of people at top level goes up. Since we are a small organization, there can only be title change after promotion and their role will remain the same.
I do understand that we need to recognize & reward people for thier valuable & outstanding contribuitions but is this is the only way to recognize them? Why do managers feel that if they do not promote a person s/he will quit job and organization will suffer?
I just want to understand from all my seniors as to is there any promotion percentages followed in industry to provide a healthy and respectable recognition and what are the other criteria’s that need to be considered for promoting a person (other than factors mentioned above).
Your inputs will make great difference…
Regards,
Laks.
From India, Bangalore
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Hi,
There is no fixed percentage that is followed for promotion; it totally depends upon the company's budget, future expansion plans...
Performance cannot be the only criterion for promoting an employee. We need to judge a person on various parameters which can include performance, leadership quality, communication skills, team management, functional knowledge, execution & implementation, collaboration, and many others...
You can definitely outline a plan for rewarding and recognizing a person by simply giving a performance bonus or providing employee training where improvement is needed.
Regards,
Pankhuri
From India, Mumbai
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There is no fixed percentage that is followed for promotion; it totally depends upon the company's budget, future expansion plans...
Performance cannot be the only criterion for promoting an employee. We need to judge a person on various parameters which can include performance, leadership quality, communication skills, team management, functional knowledge, execution & implementation, collaboration, and many others...
You can definitely outline a plan for rewarding and recognizing a person by simply giving a performance bonus or providing employee training where improvement is needed.
Regards,
Pankhuri
From India, Mumbai
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Hi Laks,
Whether the promotion rate of 40 % is high or not – is not an issue here. Here one needs to assess the past promotion data for the last four to five years before commenting on the same.
Once you analyze the same wrt department and personnel wise – it may give an interesting trend and perhaps if you share the same with the Functional Heads and Top Management – this may help you rationalize this year’s promotion list.
Agree with your dilemma that being a small organization –promotion just entails the change in title without little change in work profile. Even I face the same challenge in my organization as well -here one can explore if those promoted can take additional responsibilities to challenge their Managerial competency. Reallocate the work responsibities like the plant accountant oversee the stores department or Customer Service personnel gets involved with the Consumer Market Research initiatives etc.
Your seniors may have the apprehension that considering the current scenario – there may not substantial jump in the compensation hence the promotion may suffice the expectations of the employees.
The other approaches to rewards and recognition of the outstanding performance are :-
Cash awards or gifts.
Announcement by the Top Management on e-mail or in house magazine.
Personal touch like the one to one meeting or a letter of appreciation by the Top Management especially CEO/MD gives one a tremendous boost to ego. I know one company where HQs is in US and the MD gives a call at Mumbai office atleast 30-40 a week to those who are doing a great job !.
Hence take the business approach to these initiatives which would help you to streamline the same.
Incase if you need further assistance, please feel free to ask.
Regards,
Rajat Joshi
From India, Pune
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Whether the promotion rate of 40 % is high or not – is not an issue here. Here one needs to assess the past promotion data for the last four to five years before commenting on the same.
Once you analyze the same wrt department and personnel wise – it may give an interesting trend and perhaps if you share the same with the Functional Heads and Top Management – this may help you rationalize this year’s promotion list.
Agree with your dilemma that being a small organization –promotion just entails the change in title without little change in work profile. Even I face the same challenge in my organization as well -here one can explore if those promoted can take additional responsibilities to challenge their Managerial competency. Reallocate the work responsibities like the plant accountant oversee the stores department or Customer Service personnel gets involved with the Consumer Market Research initiatives etc.
Your seniors may have the apprehension that considering the current scenario – there may not substantial jump in the compensation hence the promotion may suffice the expectations of the employees.
The other approaches to rewards and recognition of the outstanding performance are :-
Cash awards or gifts.
Announcement by the Top Management on e-mail or in house magazine.
Personal touch like the one to one meeting or a letter of appreciation by the Top Management especially CEO/MD gives one a tremendous boost to ego. I know one company where HQs is in US and the MD gives a call at Mumbai office atleast 30-40 a week to those who are doing a great job !.
Hence take the business approach to these initiatives which would help you to streamline the same.
Incase if you need further assistance, please feel free to ask.
Regards,
Rajat Joshi
From India, Pune
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Dear Pankhuri & Rajat,
I thank you for your valuable input.
Pankuri, as of now, we do not see any expansion plan. It appears that functional heads give importance only to the technical knowledge and job performance of an employee, and all other parameters are forgotten. I have also observed that a batch of people working in the same role or a group of people joined together are recommended for promotion, even if a person does not meet all criteria. If I raise this as a question, the answer will likely be that all are performing well, as evidenced by their ratings.
Rajat, we had 20 to 30% promotions in 2005 and 2006, which increased to 40% in 2007 and 2008.
We have different recognition schemes (spot award, monthly, annual, service-based, email appreciation, etc.), yet people still feel that promotion is the only way to make someone feel proud and stay with the organization.
Your inputs will definitely help me in further discussions with the Functional Heads. However, I would like to ask both of you: Do you think the rate at which promotions are increasing is normal, or does it require serious consideration for a small organization like ours?
Laks.
From India, Bangalore
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I thank you for your valuable input.
Pankuri, as of now, we do not see any expansion plan. It appears that functional heads give importance only to the technical knowledge and job performance of an employee, and all other parameters are forgotten. I have also observed that a batch of people working in the same role or a group of people joined together are recommended for promotion, even if a person does not meet all criteria. If I raise this as a question, the answer will likely be that all are performing well, as evidenced by their ratings.
Rajat, we had 20 to 30% promotions in 2005 and 2006, which increased to 40% in 2007 and 2008.
We have different recognition schemes (spot award, monthly, annual, service-based, email appreciation, etc.), yet people still feel that promotion is the only way to make someone feel proud and stay with the organization.
Your inputs will definitely help me in further discussions with the Functional Heads. However, I would like to ask both of you: Do you think the rate at which promotions are increasing is normal, or does it require serious consideration for a small organization like ours?
Laks.
From India, Bangalore
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It seems that there is no proper mechanism or compensation management existing in India. Some states mention 40%, while others say it's 10 to 20%.
In the West, we follow performance appraisal followed by annual merit increases with the distribution of percentages depending on performance ratings at specific grade levels. When giving promotions, we offer salary adjustments in the next salary scale with a 4% increase. If that 4% increase would place the salary below the minimum of the salary range, the individual is fixed to the start of the next salary scale.
This is a scientific approach with a well-defined compensation policy, salary scales, and grades for various positions.
Regards,
Partho
From Saudi Arabia
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In the West, we follow performance appraisal followed by annual merit increases with the distribution of percentages depending on performance ratings at specific grade levels. When giving promotions, we offer salary adjustments in the next salary scale with a 4% increase. If that 4% increase would place the salary below the minimum of the salary range, the individual is fixed to the start of the next salary scale.
This is a scientific approach with a well-defined compensation policy, salary scales, and grades for various positions.
Regards,
Partho
From Saudi Arabia
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As far as I understand the whole scenario, your company doesn’t follow any proper procedures and policies to promote people.
Laks, you need to put a few plans in place, such as forming assessment panels that will operate based on specific guidelines drafted by the company. These panels will evaluate people and their performances, leading to a more streamlined and structured approach to promotions.
There are various tools available in the market, such as psychometric tests and behavioral analysis, which are used to judge a person.
From India, Mumbai
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Laks, you need to put a few plans in place, such as forming assessment panels that will operate based on specific guidelines drafted by the company. These panels will evaluate people and their performances, leading to a more streamlined and structured approach to promotions.
There are various tools available in the market, such as psychometric tests and behavioral analysis, which are used to judge a person.
From India, Mumbai
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Hi,
In one of the companies I worked for, the following criteria were used for promotions:
1. Minimum years of experience in the company (e.g., 3 years in the company to be promoted to Managers).
2. Performance rating (evaluated through a balanced scorecard, with HR involved in analyzing and training employees for the same).
3. Recommendations by superiors on the capability fit for the next position's job description.
The management developed a policy based on these parameters. Another strategy adopted was that if an employee who had shown exemplary performance did not receive a promotion, they were paid a bonus (though increments in these cases were lower). When giving the letter, they were congratulated by being told they were one of the few to receive a bonus that year (specifying the number). Therefore, you may consider raising this concern with management and developing policies before final decisions are made.
Hope this helps.
From India, Bangalore
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In one of the companies I worked for, the following criteria were used for promotions:
1. Minimum years of experience in the company (e.g., 3 years in the company to be promoted to Managers).
2. Performance rating (evaluated through a balanced scorecard, with HR involved in analyzing and training employees for the same).
3. Recommendations by superiors on the capability fit for the next position's job description.
The management developed a policy based on these parameters. Another strategy adopted was that if an employee who had shown exemplary performance did not receive a promotion, they were paid a bonus (though increments in these cases were lower). When giving the letter, they were congratulated by being told they were one of the few to receive a bonus that year (specifying the number). Therefore, you may consider raising this concern with management and developing policies before final decisions are made.
Hope this helps.
From India, Bangalore
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Hi,
Promoting 40% to the next level is apparently very high in a 100-people company. It does mean nearly half of the people are moving to the next level, requiring the same number of people to join the organization to replace them in the current positions. Do you have a scope for that?
There are a few points to ponder:
- Look at your current organogram and hierarchical levels. The distinguishing factors between various roles/levels need to be identified.
- The movement of people to the next level requires assuming new/more responsibilities. Check the potential level of candidates who are asked to be promoted.
- Check the levels at which the candidates are to be promoted - from which level to which level? If you are finding no rationale except ratings, the normalization needs to be redone.
- You would want to decide a prescribed number of years in a particular role before moving onto the next level (separate for fast-track performers).
- Check the financial outflow by virtue of this promotion and therefore having people to be recruited. Is there a buy-in from management?
It's a tricky situation, but still, I feel the promotability factors need to be relooked as the proportion seems high for a small organization.
From India, Madras
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Promoting 40% to the next level is apparently very high in a 100-people company. It does mean nearly half of the people are moving to the next level, requiring the same number of people to join the organization to replace them in the current positions. Do you have a scope for that?
There are a few points to ponder:
- Look at your current organogram and hierarchical levels. The distinguishing factors between various roles/levels need to be identified.
- The movement of people to the next level requires assuming new/more responsibilities. Check the potential level of candidates who are asked to be promoted.
- Check the levels at which the candidates are to be promoted - from which level to which level? If you are finding no rationale except ratings, the normalization needs to be redone.
- You would want to decide a prescribed number of years in a particular role before moving onto the next level (separate for fast-track performers).
- Check the financial outflow by virtue of this promotion and therefore having people to be recruited. Is there a buy-in from management?
It's a tricky situation, but still, I feel the promotability factors need to be relooked as the proportion seems high for a small organization.
From India, Madras
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Hi,
Our criteria for promotion are as follows:
1) Performance of the employee
2) Potential of the employee to grow in the organizational hierarchy
Other than performance and potential criteria, competencies like interpersonal skills, man-management skills, crisis management, behavior under different situations, etc., should also be considered during promotion. One of the best ways to gain expertise in these areas is to learn these skills on the job. Therefore, work experience should also be linked to the criteria for promotion.
From India, Mumbai
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Our criteria for promotion are as follows:
1) Performance of the employee
2) Potential of the employee to grow in the organizational hierarchy
Other than performance and potential criteria, competencies like interpersonal skills, man-management skills, crisis management, behavior under different situations, etc., should also be considered during promotion. One of the best ways to gain expertise in these areas is to learn these skills on the job. Therefore, work experience should also be linked to the criteria for promotion.
From India, Mumbai
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Laks,
You are truly right that the performance of the employees should be rewarded. Other than promotion, increment, or a salary hike, you can devise a program to identify the best employee from each department based on their performance every month. The reward may be in terms of money or anything else; definitely, the employees will be satisfied and motivated by this. I have worked on designing a similar program for my company. If you need assistance outlining the same, I am willing to help. Let me know if you are interested, and keep in mind that the approach may vary depending on your industry.
In any case, outstanding performance by an employee must be recognized and rewarded promptly.
Best wishes,
From India, Bangalore
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You are truly right that the performance of the employees should be rewarded. Other than promotion, increment, or a salary hike, you can devise a program to identify the best employee from each department based on their performance every month. The reward may be in terms of money or anything else; definitely, the employees will be satisfied and motivated by this. I have worked on designing a similar program for my company. If you need assistance outlining the same, I am willing to help. Let me know if you are interested, and keep in mind that the approach may vary depending on your industry.
In any case, outstanding performance by an employee must be recognized and rewarded promptly.
Best wishes,
From India, Bangalore
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