Increment problem - planned to do the annual increments on one particular month(April) - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Jhuma Tiwade
Manager- Human Resources
Rahul Kumar
Senior Hr Professional
Deepak Thukral
Manager Accounts
Jis
Hr
Paddutr
Manager-finance
Raghushekaran
Asst Manager
+1 Other

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I have a small query on which need all your suggestion. I am working in a reputed company and with concern to annual increments the increments are given to the staffs after the completion of their one year service.

But in terms of financially and technically we are facing problem of doing appraisals and increments every month as almost more than 50 staffs fall for increments every month. So we have planned to do the annual increments on one particular month(April) ie start of new financial year so that the month before that we can do the appraisal for all the staffs and no more work on appraisals after that month.

My query is that if a person X joins the company on oct 2006, he completes his one year of probation on oct 2007 and will be eligible for one increment. So how will fit Mr.X on the normal appraisal period ie from April 2008 as he had already got his increment on oct 2007??

Looking forward for your assistance.
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NORMALLY INCREMENTS ARE GRANTED AFTER COMPLETION OF ONE YEAR IN PRIVATE AND PUBLIC SECTOR. FOR INSTANCE IF AN EMPLOYEE HAS JOINED ON 15TH OF MAY HE WILL BE ELIGIBLE FOR INCREMENT ON 1ST OF MAY, NEXT YEAR. IF THE PERIOD OF PROBATION IS ONE YEAR, THE PROBATION PERIOD WILL END ON 15TH MAY BUT THE FINANCIAL BENEFIT WILL BE GRANTED W.E.F. 1ST OF MAY. THUS IT IS AMPLY CLEAR THAT IT IS NOT NECESSARY THAT CLOSURE OF PROBATION AND GRANT OF INCREMENT SHOULD NECESSARILY FALL ON THE SAME DAY. FOLLOWING THE ANOLOGY YOU CAN GRANT INCREMENTS TO ALL EMPLOYEES ON 1ST OF APRIL ON PROPORTIONATE BASIS. THUS IF AN EMPLOYEE HAS PUT IN 10 MONTHS AS ON 1ST APRIL, HE MAY BE GRANTED 10/12 OF THE NORMAL INCREMENT AND LIKEWISE. HOWEVER, WHILE CLOSING PROBATION NECESSARY APPRISAL MAY BE MADE. IF YOU SO DESIRE YOU CAN PUT A STIPULATION THAT GRANT OF INCREMENT DOES NOT IN ANY WAY DENOTE THAT PROBATION HAS BEEN CLOSED FOR WHICH THE DECISION SHALL BE TAKEN BASED ON APPRISAL REPORT
DEEPAK THUKRAL
CHANDIGAH
Dear Raghu,
You may follow the following process :
1. To bring all employees to the appraisal period starting 1st April, have their annual appraisal done for April and grant them increment on pro-rata basis
2. Do so only for employees who are confirmed in the service of the Company (i.e. after six months).
3. Employees not yet confirmed will not qualify for increments this time but will qualify next time. But they will again get pro-rated increments next time to cover for the probation period performance.
4. Indiscipline cases/low performers will not get increment based on your policy guidelines.
Hope this helps.
Regards,
Rahul Kumar
Dear Raghu,
From the present system of monthly increment you can move on to quarterly increment. whoever joins between 01 Jan to 31 Mar, he/she gets increment as on 01 Apr and so on. Thereafter, the particular individual will get increment as on 1st April.
To stabilise this system it will take 2-3 years. Once the system stabilises, you can switch over to half yearly increment.
By the way I am into soft skill training and I take this opportunity to aprise you of my training activities by attaching my training e-Brochure.
Thanks,
Dinesh V Divekar
Soft Skill Trainer & HR Consultant, Bangalore


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Hi,
To solve your problem, you can adopt the following method:
1. Appraise all the confirmed employees as per policy of your company.
2. Employees completing 6 months of service in the organisation, may be given a Performance Incentive till the month of March of next year. Then they become eligible for annual increment like others.
3. The performance incentive need not necessarily be on a pro-rata basis. It can be adhoc.
Regards,
Paddutr
Dear All,
Thanks a lot for all your inputs. But still i have a query to be clarified. Suppose if i dont want to do it in prorata basis and if a person who already got his annual increment by Jan 2007 how will i fit him in the appraisal period of April 07? If i give him one more increment on April 07 he will be getting 2 increments in a year which i dont want to do..
So how will i fit a guy who got or due for increment in jan 07 in April 07 without prorata basis.
Looking forward for earliest reply.
Regards,
Raghu
Dear Raghu,
Increments are calculated on pro rata basis. There is no point in giving increment after 3 months. That is why I had suggested you to go for quarterly and then half-yearly mode.
thanks,
Dinesh V Divekar
Dear Raghu,
My suggestion would be to arrive at a cut off month and then arrive at an appraisal cycle,
For Eg,
If your cut off is 3 months and your appraisal cycle is April, then all the employees who joined on or before December 31st will be eligible for the appraisal process. Employees who join after December 31st will be appraised for 15 months instead of 12 months in the next appraisal cycle.
The others will still be appraised on a prorata basis depending on their DOJ.
Thisis just my suggestion.
In my current company the increment cycle is April to March and an employee joins the company in between the increment cycle the next increment is due only after completion of 12 working months from date of joining.
My manager is rigid and is not ready to accept the concept of regularizing the same and rolling increment once in a year. i.e does not want to set a cuttoff date.i.e all joinings on or before 31 sep09 will be eligible for annual increment in april 10 on prorata basis.
Those joining between 1st Oct 09 and March 09 will be eligible only in 2011.
His logic is that the employee joining during this period will have to wait for 18 months which I dont disagree but I feel there is a way out to this: we can offer some % extra while hiring a new employee to compensate for the additional 6 months .
How do i convince him and propose and convey the benifits of regularising the cycle.
dear sir,
my name is veerababu medisetty,
i have working in mandovi minerals pvt.ltd gujarat, my company giving yearly bonus(every divali) and increment (april - march)presently my company given 10% increment to all employees but did not give me.
i have joined july.01.2015 but company did not give 10% increment to me.
1. iam elgible or not elgible for increment
kindly please give me solution.
with regards
veerababu.m

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