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Salary Increases
Benefits & Compensation
Salary Increases
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
I am considering some different options on how to administer salary increases which are tied in directly to performance appraisal ratings.
My first option is to give raises based strictly on mathe
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Forums » Topic Forums » Benefits & Compensation » Salary Increases
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Salary Increases
posted at 10/29/2009 4:03 AM EDT
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Posts: 14
First: 10/16/2009 Last: 6/21/2010 |
I am considering some different options on how to administer salary increases which are tied in directly to performance appraisal ratings.
My first option is to give raises based strictly on mathematical formulas. Higer rating = higher raise. No independent judgement from their managers. Other option is to use the overall rating as a guide, but allow the manager to choose the % increase for the employee. This is very subjective and concerns me because we need some consistency. The third option is to use a combination of both. Salary increase using mathematical formula, but provide managers the latitude to recommend up to 2% additional, which would then be approved by me and the CEO. This may be the best option because it provides a way to try to retain high performers, yet we would also have some consistency. What are your thoughts/experiences with these different options? I am interested in hearing your thoughts. Thanks! |
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Salary Increases
posted at 10/29/2009 4:22 AM EDT
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Posts: 186
First: 4/23/2001 Last: 4/14/2010 |
I like allowing the Mgr to have some input, but with several important caveats. First, the whole process must stay within the prescribed overall budget and, second, the Mgr must stay within their prescribed budget. I would also be wary of Managers that think all of their employee walk on water and the alternative, that they all stink (haven't ever seen this but just as problematic). |
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Salary Increases
posted at 10/29/2009 4:34 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Who does the performance ratings? Wouldn't that be the manager? Are there external ratings that flow into the performance ratings or is it more subjective? If the perf review is already subjective, then you have the manager in control of two parts, although one is indirect and one is more direct.
That said, only you know your managers. Can you trust them to be objective? If not, maybe they shouldn't be in the position of making the decision. Or they need to be trained on how to perform reviews and know what to look for in mistakes reviewers often make. And honestly, right now, I don't know a single company who is giving annual raises. Most are still sitting back and watching the economy. |
Forums » Topic Forums » Benefits & Compensation » Salary Increases
