Hello all HR Team Members,
I am Ashwini, Assistant HR Manager of an IT Company. The management of the company is considering giving increments at the end of the financial year. What will be the criteria/parameters for the increment of the employees? What will be the parameters in case of non-increment?
Additionally, please suggest some performance appraisal criteria that I can add to the Monthly Performance Appraisal.
Thanks to all in advance...!!!
From India, Nagpur
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1I am Ashwini, Assistant HR Manager of an IT Company. The management of the company is considering giving increments at the end of the financial year. What will be the criteria/parameters for the increment of the employees? What will be the parameters in case of non-increment?
Additionally, please suggest some performance appraisal criteria that I can add to the Monthly Performance Appraisal.
Thanks to all in advance...!!!
From India, Nagpur
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For the purpose of planning annual increments in a mid/small size IT company, the following factors could be considered:
1. Giving a minimum of 3-5% increase in CTC to all employees to compensate for the increase in the cost of living.
2. Some increase based on Performance Rating (evaluate on a scale as per your current PMS). Low performers may not be considered for performance-linked increase. This sends a clear message that the organization is performance-driven. Ensure that the exit of these employees should be acceptable to their Heads of departments.
3. Some compensation based on market salaries vis-a-vis the current CTC of employees. This is to remove existing aberrations, if any, especially for those employees who are considered valuable and need to be retained. Please note that this clause should be selectively applied.
4. Maybe 1% extra incentive for long & dedicated service. This is to encourage those who have served the company for 5 years or more. Some organizations call this a loyalty component of the increment.
Please note that after estimating the total cash value of employee increments based on the above factors, these have to be further regulated by the salary budgets for the next financial year. Nothing should be announced until signed off by the management.
If at any stage, you decide to introduce automation in your environment, search for 'EmpXtrack' on the web, which has helped many organizations introduce objectivity in their increment planning system based on performance evaluation. Need-based solutions are provided based on best practices in the industry.
From India, Delhi
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1. Giving a minimum of 3-5% increase in CTC to all employees to compensate for the increase in the cost of living.
2. Some increase based on Performance Rating (evaluate on a scale as per your current PMS). Low performers may not be considered for performance-linked increase. This sends a clear message that the organization is performance-driven. Ensure that the exit of these employees should be acceptable to their Heads of departments.
3. Some compensation based on market salaries vis-a-vis the current CTC of employees. This is to remove existing aberrations, if any, especially for those employees who are considered valuable and need to be retained. Please note that this clause should be selectively applied.
4. Maybe 1% extra incentive for long & dedicated service. This is to encourage those who have served the company for 5 years or more. Some organizations call this a loyalty component of the increment.
Please note that after estimating the total cash value of employee increments based on the above factors, these have to be further regulated by the salary budgets for the next financial year. Nothing should be announced until signed off by the management.
If at any stage, you decide to introduce automation in your environment, search for 'EmpXtrack' on the web, which has helped many organizations introduce objectivity in their increment planning system based on performance evaluation. Need-based solutions are provided based on best practices in the industry.
From India, Delhi
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Hi Ashwini,
Next year onwards, please have well-defined KRAs for all designations/departments so that performance can be easily quantified and employees are satisfied with the same. For this year, you can rate employees based on some basic responsibilities and behaviors (such as target vs. achievement, deadlines, punctuality, etc.).
Hope this helps!
Regards,
Kanika
From India, Delhi
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Next year onwards, please have well-defined KRAs for all designations/departments so that performance can be easily quantified and employees are satisfied with the same. For this year, you can rate employees based on some basic responsibilities and behaviors (such as target vs. achievement, deadlines, punctuality, etc.).
Hope this helps!
Regards,
Kanika
From India, Delhi
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