It is not necessary to compare salary of people while going for increment it will lead to the position or point where person with good skill get same salary as person having low skills.
Hence the increment should be on last drawn salary of each workmen based on merit or performance without equating the amount or comparing the salary.
This practice also improve your workers performance, satisfaction and involvement level.
@Sneha...We compare salaries of employees of the same cadre in our organization and then based on performance rating and difference in the salaries, we try to bring the salaries at par of the people of the same cadre.
It is a herculean task done in excel sheet.
Here, it has nothing to do with market trend
First of all dont compare the salaries of the employees who are in the same cadre, because salary may be variant based on the skills of the employee and also their performance. and increment should on the performance appraisal score.
The effectiveness of your appraisal systems brings in transparency and also doesnt create bias.
The purpose of appraisal system is to differentiate talents on scale of results delivered against the results expected from profile. Now when you compare the salary of 2 employees who may be in same cadre but might have different level of accountability/ deliverable.
Hence when you compare salaries and also then equalize them, i think it is creating contradiction to effectiveness of your appraisal system.
Also note that Salary Fitment is a tool only should be used in special cases.