Employee retained in Oct'23 with 20% hike and matched his new offer letter issued by other employer. His appraisal was due in Feb'24 which was moved to Aug'24 considering his salary was revised in Oct'23. Now, In Aug'24, it is just 9 months back he was retained with 20% hike and what should I do? Do I need to consider him for this Aug'24 appraisal cycle or move it to Feb'25 cycle. He is a strong resource and valuable asset to the company. Please suggest!
From India, Chennai
From India, Chennai
Hi Karthik,
Given that the employee is a strong resource and valuable asset to the company, here are some considerations for managing his appraisal:
Performance-Based Decision: Evaluate his performance since the last hike in October 2023. If he has shown exceptional performance and contributed significantly, it might be worthwhile to consider him for the August 2024 appraisal cycle. This would reinforce his value to the company and maintain his motivation.
Market Competitiveness: Assess the current market standards for similar roles. If the market has shifted and his current salary (including the 20% hike) is now below market rates, an additional hike might be necessary to retain him.
Company Policy and Consistency: Review your company's appraisal policy. If the policy typically dictates that appraisals are given annually, you might move his next appraisal to February 2025. However, considering his value, you might want to make an exception if there is flexibility in the policy.
Communication and Transparency: Regardless of the decision, ensure clear communication with the employee. If you decide to move the appraisal to February 2025, explain the reasons and reinforce his value to the company. You might also discuss any additional incentives or benefits to keep him engaged and motivated until the next appraisal cycle.
Recommendation:
Option 1: Include in August 2024 Appraisal Cycle
Evaluate his performance since October 2023.
If he has performed exceptionally well, consider a moderate increase or a performance bonus to acknowledge his contributions without necessarily providing a significant hike.
Option 2: Defer to February 2025
Clearly communicate the rationale behind moving his appraisal to February 2025.
Highlight his value to the company and discuss interim measures like bonuses, additional responsibilities, or professional development opportunities to keep him motivated.
Given that he is a strong resource, Option 1 might be more beneficial in reinforcing his value and ensuring his continued engagement with the company.
Thanks
From India, Bangalore
163Given that the employee is a strong resource and valuable asset to the company, here are some considerations for managing his appraisal:
Performance-Based Decision: Evaluate his performance since the last hike in October 2023. If he has shown exceptional performance and contributed significantly, it might be worthwhile to consider him for the August 2024 appraisal cycle. This would reinforce his value to the company and maintain his motivation.
Market Competitiveness: Assess the current market standards for similar roles. If the market has shifted and his current salary (including the 20% hike) is now below market rates, an additional hike might be necessary to retain him.
Company Policy and Consistency: Review your company's appraisal policy. If the policy typically dictates that appraisals are given annually, you might move his next appraisal to February 2025. However, considering his value, you might want to make an exception if there is flexibility in the policy.
Communication and Transparency: Regardless of the decision, ensure clear communication with the employee. If you decide to move the appraisal to February 2025, explain the reasons and reinforce his value to the company. You might also discuss any additional incentives or benefits to keep him engaged and motivated until the next appraisal cycle.
Recommendation:
Option 1: Include in August 2024 Appraisal Cycle
Evaluate his performance since October 2023.
If he has performed exceptionally well, consider a moderate increase or a performance bonus to acknowledge his contributions without necessarily providing a significant hike.
Option 2: Defer to February 2025
Clearly communicate the rationale behind moving his appraisal to February 2025.
Highlight his value to the company and discuss interim measures like bonuses, additional responsibilities, or professional development opportunities to keep him motivated.
Given that he is a strong resource, Option 1 might be more beneficial in reinforcing his value and ensuring his continued engagement with the company.
Thanks
From India, Bangalore
Just because you were forced to do a mid-term revision, do you think it is justified to push his appraisal to the next year? Do you think he will stay on with such a treatment? Next time he may not even given you a chance to match his alternate offer.
You may not have a full year, but I think 9 months is enough to gauge his work and evaluate how much you want to pay him to retain him. The last thing you should do is to piss off an employee who is a critical asset to your company
From India, Mumbai
You may not have a full year, but I think 9 months is enough to gauge his work and evaluate how much you want to pay him to retain him. The last thing you should do is to piss off an employee who is a critical asset to your company
From India, Mumbai
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Employee Appraisal Form new.doc