Dear All,
We are a startup IT company and are confused about which increment cycle to follow; hence, we need your help. If we decide to have increments twice a year, what would be the policy for the same? Who all would be eligible if we implement bi-annual increments? Additionally, what is the minimum increment that should be given to a poor performer?
Thank you for your assistance.
From India, Pune
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1We are a startup IT company and are confused about which increment cycle to follow; hence, we need your help. If we decide to have increments twice a year, what would be the policy for the same? Who all would be eligible if we implement bi-annual increments? Additionally, what is the minimum increment that should be given to a poor performer?
Thank you for your assistance.
From India, Pune
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Increments are the discretion of the management. There is no law stating minimum increments (other than those covered by DA). SO if the performance is bad, you can deny him an increment
From India, Mumbai
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From India, Mumbai
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Dear Kiran,
This is in addition to what Mr. Banerjee has said. Generally, the duration of the increment cycle is a year. In most companies, increments are linked to performance. When designing a policy on performance appraisal, increments are given based on performance slabs. For example, these slabs could be > 85%, 75 to 84.99%, 65 to 74.99%, etc. Salary increments are allocated according to the financial performance of the company. Once the management declares the amount that can be increased in the monthly salary, that amount is proportionately distributed among the various slabs as mentioned above.
If you keep the increment cycle at half-year, nothing is wrong per se; however, it will increase the burden of your administrative work. Will you be able to sustain it? Secondly, the challenge is once you set a trend of a half-yearly increment cycle, will you be able to maintain the tempo? Therefore, my suggestion is to adhere to the standard practice of a year's space between the two increments.
Thanks,
Dinesh Divekar
From India, Bangalore
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This is in addition to what Mr. Banerjee has said. Generally, the duration of the increment cycle is a year. In most companies, increments are linked to performance. When designing a policy on performance appraisal, increments are given based on performance slabs. For example, these slabs could be > 85%, 75 to 84.99%, 65 to 74.99%, etc. Salary increments are allocated according to the financial performance of the company. Once the management declares the amount that can be increased in the monthly salary, that amount is proportionately distributed among the various slabs as mentioned above.
If you keep the increment cycle at half-year, nothing is wrong per se; however, it will increase the burden of your administrative work. Will you be able to sustain it? Secondly, the challenge is once you set a trend of a half-yearly increment cycle, will you be able to maintain the tempo? Therefore, my suggestion is to adhere to the standard practice of a year's space between the two increments.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Kiran Generally Increment are given once in year. Regards Manjunath
From India, Bengaluru
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From India, Bengaluru
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I would suggest that you have an annual increment cycle, however, keep performance measurement half-yearly.
Share the performance feedback with employees as it would help them in understanding and filling the gap between “their” performance and the expected performance. As an organisation you will also be able to act fairly by giving non-performers ample time to improve, by offer them training, counselling, etc. The 1st cycle of measurement & feedback shall also act as course correction and clear expectations must be set. The 2nd cycle of performance measurement should be compared with the first and performance consistency and improvement must be rewarded with suitable salary increments &/ promotions.
An organisation shall not accept non-performance at any cost as it leads to not just inefficiency of resource but also plays as a huge demotivating factor for the performers.
The minimum increment for a non-performer is Zero.
Exceptional performance shall be rewarded mid-term as well.
From India, Delhi
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Share the performance feedback with employees as it would help them in understanding and filling the gap between “their” performance and the expected performance. As an organisation you will also be able to act fairly by giving non-performers ample time to improve, by offer them training, counselling, etc. The 1st cycle of measurement & feedback shall also act as course correction and clear expectations must be set. The 2nd cycle of performance measurement should be compared with the first and performance consistency and improvement must be rewarded with suitable salary increments &/ promotions.
An organisation shall not accept non-performance at any cost as it leads to not just inefficiency of resource but also plays as a huge demotivating factor for the performers.
The minimum increment for a non-performer is Zero.
Exceptional performance shall be rewarded mid-term as well.
From India, Delhi
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