Dear All,
It is very challenging to translate the performance shown by an employee to his salary or salary increment amount. Is there any specific formula, rule or a method by which we can do this transparently?
Thanks
Manish
From India, Nagpur
16It is very challenging to translate the performance shown by an employee to his salary or salary increment amount. Is there any specific formula, rule or a method by which we can do this transparently?
Thanks
Manish
From India, Nagpur
Hi Manish,
you would need to quantify the KRA's set for the employee. and each and every KRA would have certain weightage in the score card. what you can do is have the productivity % - salary increments
for ex if the employee has met 60 - 70% of the KRA's - can be meets expectation - and this can go towards a fixed % of increments.
Regards
Sunayana
From India, Thana
you would need to quantify the KRA's set for the employee. and each and every KRA would have certain weightage in the score card. what you can do is have the productivity % - salary increments
for ex if the employee has met 60 - 70% of the KRA's - can be meets expectation - and this can go towards a fixed % of increments.
Regards
Sunayana
From India, Thana
Hello frnd.. Hope this template will help you. it was posted by on of citehr member..
From India, Coimbatore
From India, Coimbatore
Manish,
Tranlating performance into pay is not really a challenging task. The above examples given by the fraternity is a typical way of rewarding performers.
My recommendation is to design a system in way that it will reward long-term as well as short-term performance, encourage retention, recognize special needs of an organization, be based on the achievement of both financial and non-financial objectives, and in general create value for shareholders. Reasonable incentives for short term performance and higher incentives for long term performance. This would help provide long-term sustainable outcomes to the benefit of shareholders.
From India, Bangalore
Tranlating performance into pay is not really a challenging task. The above examples given by the fraternity is a typical way of rewarding performers.
My recommendation is to design a system in way that it will reward long-term as well as short-term performance, encourage retention, recognize special needs of an organization, be based on the achievement of both financial and non-financial objectives, and in general create value for shareholders. Reasonable incentives for short term performance and higher incentives for long term performance. This would help provide long-term sustainable outcomes to the benefit of shareholders.
From India, Bangalore
Thanks All!
But still this discussion is rounding near performance appraisal system and not actually on how to convert ratings into a particular salary. If an employee asks why this much of increment/salary and why not this much then there should be a clear and transperant way, method to explain this. Also if company earns huge profit then how much to be spent on employee salaries and why remains crucial.
Rgds.
Manish
From India, Nagpur
But still this discussion is rounding near performance appraisal system and not actually on how to convert ratings into a particular salary. If an employee asks why this much of increment/salary and why not this much then there should be a clear and transperant way, method to explain this. Also if company earns huge profit then how much to be spent on employee salaries and why remains crucial.
Rgds.
Manish
From India, Nagpur
Hai
In India monetary benefit becomes more motivation and Demanding for employee performance.So Incremnet has to be transparent enough.Streamlining with the department heads and Key Result Area is important.
It has to be communicated to Employees clearly that achievement and Criiteria.So that in near future it will not create any problem in this regard
Thanks
Nandha Kumar
From India, Coimbatore
In India monetary benefit becomes more motivation and Demanding for employee performance.So Incremnet has to be transparent enough.Streamlining with the department heads and Key Result Area is important.
It has to be communicated to Employees clearly that achievement and Criiteria.So that in near future it will not create any problem in this regard
Thanks
Nandha Kumar
From India, Coimbatore
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