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Dinesh DivekarDear Kalyani-K1,
There are two issues in your small post, imposing a lock-in period after conducting the Performance Appraisal (PA) and keeping information pertaining to PA confidential. The replies to your queries are as below:
Statement: - An appraised person has to give his commitment of a minimum of 2 yrs to staying back with us.
Reply: - The PA is conducted to check whether or not the employee has delivered the required performance in the performance cycle of the past. The performance cycle could be a past quarter, half-year or year. Based on the level of the performance, a salary hike is given to the employee. However, salary hike based on the PA or even conducting the PA itself cannot be linked to the future tenure of the employee. With or without PA, you cannot lock an employee's career in your company. We will give a salary hike to the employees and in return let employees commit two years of stay in our company, this quid pro quo is completely illegal.
Does your company face a problem of employee attrition in the post-appraisal period? If yes, then be informed that many other companies face a similar problem. However, the solution to this problem cannot be the "forced stay" of the employee. If you wish to improve employee retention, then the solution to this challenge is different.
Statement: - Confidentiality of not discussing this with any other team member as it can lead to immediate disciplinary action or termination.
Reply: - Yes, any information related to the PA must be kept confidential, by the appraiser, appraisee and those who maintain the records related to the PA. However, the clause on confidentiality is included in the "Policy on Performance Appraisal". The employees are expected to implement the organisation's policies in letter and spirit, and the breach could invite disciplinary action. How is the PA conducted in your company? Is it a paper-based system or through some software? Whatever the method may be, you can include the clause on confidentiality in the PA form itself. You can insert the clause that "all the parties involved in the PA process, i.e., appraiser, appraisee and those who are involved in maintaining the records of the filled PA forms, must keep the contents of the form confidential. If any breach of information is discovered, then the parties concerned are liable for stern disciplinary action." A strictly-worded declaration could deter whoever is involved in the PA process.
From India, Bangalore