Salu Shrestha

Until now my company has always tied the performance appraisal score with the salary increment percentage, but unfortunately, it had led the staff to only focus on the salary increment part instead of taking feedback regarding his/her performance. So, I was thinking not to tie the salary increment with the performance review score onwards. But I am not sure what will be the base of the increment if I didn't sync it to their appraisal score. How will I decide the increment percentage while considering that it needed to be as objective as possible. I will be very grateful for any suggestions regarding this. Thank you.
From Nepal, Kathmandu
Dinesh Divekar
Business Mentor, Consultant And Trainer

Dinesh Divekar

Dear Salu Shretha,
The challenge that you are facing is not new. It is common across the industries. This happens because of the following reasons:
a) Neither top leadership nor employees understood the meaning of Performance Management System (PMS).
b) They did not know the difference between PMS and Performance Appraisal (PA).
c) Focus of PMS should be on organisation. If the focus is on people or individual employees, problems of this kind arise
Solution: - It is as below:
Firstly, you need to have a comprehensive policy on PMS wherein the role of each individual is earmarked in the execution of the policy. Do you have such policy well in place and if yes, then has it been circulated to all the employee and if circulated then has it been understood by all the employees?
Secondly, feedback is important component of the PA process. Please do not remove it from the process.
Thirdly, do you measure the performance on a scale of 100? If yes, rather than giving them feedback, ask them how they can improve the performance. Later let the reviewing manager write his/her comments. In the next PA, review of the last feedback also should be done.
Final comments: - PMS and PA are comprehensive HR processes. Due diligence needs to be observed while executing these processes. Earlier, I have given my comprehensive comments on PMS. Click the following link to refer these:
For further information, feel free to contact me.
Dinesh Divekar

From India, Bangalore

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