Performance Rewviews & Salary Reviews

[belinda]

Currently we review our employees performance and salary review on an adhoc basis. It could be at the employee service date or another date when the Mgr remembers.

I want to implement a system where appraisals and salary reviews are completed all at the one time. However I need to look at how I am able to sell this process to the Directors, and was wondering what other companies are doing and what is best practice. I am hoping you may be able to provide me with further information or where I would be able to find this information.

[Marnie.L]

Hi belinda,

My organisation completes formal performance appraisals and salary reviews twice a year in December and June. The salary review happens immediately after the performance appraisals and this seems to work really well with staff knowing what happens and when to expect it. We rely on industry information gained through salary surveys from various organisations. Mercer are a good one and you can access info through their website.
Cheers,
M.L

[JackT]

Hi Belinda,

My thoughts, for what they are worth. Probably the first question to ask is why does your organisation do performance appraisals? Is it to reward individual performers or is it to align individual employee goals and development with organisational need? Perhaps a bit of both or maybe it’s just something that has to be done.

Some reasons for a common review date:

- Employee reviews can be aligned with the business planning process.
- Training plans can be systematically developed with a cross organisational emphasis and budgeted for.
- Employee remuneration increases can be planned and linked to individual AND team success measures.
- Training for supervisors, managers and employees around participating in the review process can be timely and structured to reflect the organisational intent.

Jack

[MaggieM]

Hello,

My organisation has 2 formal performance reviews each year:
Interim - Mid Year --> "A check in" to see in the employee aligned with meeting their objectives
Annual - End Year --> Overall review and time to set objectives and KPIs for the upcoming year
After reviews we are then given a budget or target to meet when awarding employees with their merit increase. (This is good for financial planning for the organisation).

Maggie

[Midaz Coaching & Consulting]

I have done it differently in different organisations. In hospitality where turnover is high and most employees are award based, we used two basic time frames for both performance and salary review. Performance was reviewed at the end of the qualifying period and again on the anniversary of their date of hire. Wage rates were reviewed in line with changes handed down by the commission and/or as the result of a positive performance appraisal. (This rewarded both length of service and performance).

In organisations that had mostly white collar workers with a lower employee turnover, the reviews happened twice a year in line with the financial planning cycles. This way bonuses and salary reviews were accrued and managed as part of the cashflow management strategy and individual performance was aligned to organisational performance and outcomes. One 6-monthly session was to set KPI's in line with organisational deliverables and the other 6-monthly session was to check in and evaluate progress.

Hope that helps. Feel free to contact me if you would like assistance putting the proposal together.

[michaelakassar]

Hi Belinda,

Whether you do your appraisals all at the same time, in line with the planning process (good idea), or in line with their employment anniversary, everything must be in line with the business strategy and goals (sorry to sound like a broken record).

Performance Management Systems (when developed and implemented properly), are multi-level systems - individual and team performance measures should be developed once you have the KPI's for the whole organisation. Also performance management and performance appraisals are not quite the same thing. The appraisal process is part of the whole performance management process.

This is just my humble opinion for what it's worth.

Hope this helps.



Cheers
Michaela

[Stephen.freiberg]

Originally Posted by belinda

Currently we review our employees performance and salary review on an adhoc basis. It could be at the employee service date or another date when the Mgr remembers.

I want to implement a system where appraisals and salary reviews are completed all at the one time. However I need to look at how I am able to sell this process to the Directors, and was wondering what other companies are doing and what is best practice. I am hoping you may be able to provide me with further information or where I would be able to find this information.

I do mine twice a year here, once in June for a prelim update and one at the end of year for the annual.

These reviews, however, should be backed up by evidence if you have good or bad examples to cover as to have anything less will leave you open. The examples are not onerous and can be less than 150 words on a word doc with date and time.

On KPI's, I have found that the best ones for an organisation are the ones that come from assessment of the work flow process for each job description. It gives you the ability to keep the description up to date (annually) and ensures that the KPI is current, effective and relevant to the actual job as part of the organisational strategy.

Regards,

Steve

[Mark D]

The best sell for the Directors on doing the performance/salary reviews at a set time each year is that it makes it easier to budget for salary increases because the majority of salary increases will be confined to a specific date each year, which in turn makes it easier to plan from a financial results perspective, and means there are no nasty random unforecasted surprises in the monthly P&L. Directors hate surprises.