Dinesh Divekar
Business Mentor, Consultant And Trainer
Partner - Risk Management
Human Resource Professional
General Manager Operations
+1 Other

Dear All, We are a startup IT company and are confused about what increment cycle to be followed hence need your help.
If we keep increments twice in a year what is the policy for the same? Who all are eligible if we keep increments twice in a year?
What is the minimum increment to be done for a bad performer?
16th October 2017 From India, Pune
Increments are the discretion of the management. There is no law stating minimum increments (other than those covered by DA). SO if the performance is bad, you can deny him an increment
19th October 2017 From India, Mumbai
Dear Kiran,
This is in addition to what Mr Banerjee has said. Generally duration of increment cycle is an year. In most of the companies, the increments are linked to the performance. While designing policy on performance appraisal, increments are given as per performance slabs. For example, these slabs could be > 85%, 75 to 84.99%, 65 to 74.99% etc.
Salary increments are given as per the financial performance of the company and once the management declares the amount that can be increased in the monthly salary, that amount is proportionately distributed in the various slabs as mentioned above.
If you keep increment cycle at half-year, nothing wrong per se however, it will increase burden of your administrative work. Will you be able to sustain it? Secondly, the challenge is once you set a trend of half-yearly increment cycle, will you be able to maintain tempo? Therefore, my suggestion is to adhere the standard practice of year's space between the two increments.
Dinesh Divekar
19th October 2017 From India, Bangalore
Dear Kiran
Generally Increment are given once in year.
19th October 2017 From India, Bengaluru
I would suggest that you have an annual increment cycle, however, keep performance measurement half-yearly.
Share the performance feedback with employees as it would help them in understanding and filling the gap between “their” performance and the expected performance. As an organisation you will also be able to act fairly by giving non-performers ample time to improve, by offer them training, counselling, etc. The 1st cycle of measurement & feedback shall also act as course correction and clear expectations must be set. The 2nd cycle of performance measurement should be compared with the first and performance consistency and improvement must be rewarded with suitable salary increments &/ promotions.
An organisation shall not accept non-performance at any cost as it leads to not just inefficiency of resource but also plays as a huge demotivating factor for the performers.
The minimum increment for a non-performer is Zero.
Exceptional performance shall be rewarded mid-term as well.
23rd October 2017 From India, Delhi
Thank you all for your valuable feedback
24th October 2017 From India, Pune
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