Salary Package and Performance Review

[Fabsteel]

We currently are conducting Salary & performance reviews but I have been asked the following question with regards to one employee by management.

"When we conduct these reviews can we adjust an employee salary package by removing his vehicle or adjusting the cash component?" (This employee has received non performance warning.)

So we would appreciate any advice on if this is possible, or if it is how do we manage this process.

Thanks

[Cottoneyes]

If the vehicle is a 'tool of trade' only and not a part of the overall package, you may be able to remove if you can link to a change in the role where it is no longer required. Doing this though you then open up other doors such as harrassment etc if management haven't got the non performance warnings spot on.

If you take the vehicle away and replace with an equivalent amount of cash, you have a better chance. However if this is only done to the one employee in isolation, you open yourself up to further action. If you try to lower their overall remuneration at all for the same role for this individual only, you will quite rightly end up with a big problem.

End of the day, there are no shortcuts to the performance management issues. Put the performance plan in place for the employee and if they don't meet the expectations required with the required chances, cut them loose. Don't try to play games with the remuneration or other things that will give them leeway to take action against you.

[Fabsteel]

thank you for the advice..

I had already said it wouldn't be a good idea as it may be viewed as harrassment of the employee due to the non performance warning already in place. I would rather see a performance management plan in place and see whether the employee can improve to the company expectations or as you say cut them loose.

Does anyone know where I could look for good HR policy templates at present we have a few in place but I feel we could do with additonal ones to cover performance reviews etc.