Management Consultancy
Ed Llarena, Jr.
Owner/ Managing Partner
Hr Manager

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I am working as a HR for a small sized company of around 50 employees.My question is regrading appraisal and increment of the employees.We follow yearly appraisal system and want to know how to decide increment percentage of the entire team.Is is flat for all team members irrespective of current salary or percentage or it varies accordingly.What appraisal procedure can be followed for a team of 50 members ? If we follow rating system how ratings are linked with hike percentage?
Please guide.

All these are linked to the company policy on Compensation. Since you have reached the 50 employee level and is on the growth trajectory, it will be better if you evolve the Rules and Regulations of Compensation policy rather than taking a part by part approach. Generally a uniform % or fixed amount as increment is NOT provided and it varies from grade to grade with the higher grades getting higher quantum. Linking rating with the hike percentage has to first of all depend on the quantum of amount allowed for the purpose and divide it in an equitable manner.
The best strategy for you is to create a policy and a guide chart that will help you implement salary adjustments consistently, fairly, and transparently.
There is a popular tool called "Rainbow Chart" that provides a detailed guide on the entitlement for every performance rating that an employee will get year on year.
If you need help on the matter, let me know. But, i charge fees for my consulting services.
Best regards.

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