Linkin Salary Increment With Bell Curve Method - CiteHR
Ed Llarena, Jr.
Owner/ Managing Partner
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Community Manager
Miffi
Human Resource Practitioner

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Dear all,
How can we link the salary increment to the bell curve performance evaluation method.
as i have to calculate the performance through the bell curve where as different departments have different budgets for Salary increase on gross salaries of their employees.
how may i distribute.
Kindly help me out
Thanks
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Hi!

I have worked in BPO, wher this method was applied in PA.

They did the following activities.

1. They divided the entire work force into following percentage.

a) 5-8 % with rating 5 [ Top rankers- Excellent,Exceed expectation.]

b) 12-15 % with rating 4 [ next level rank- Good]

c) 70% with rating 3 [ Satisfactory performance]- Achieved expectation]

d) 10-12 % with rating 2 [ Needs improvement, have the potential to do better]

e) 5-8% with rating 1 [ Poor performance, continuously missing targets, to be put in PIP]

2. Then they divided the process according to thier sensitivity to the client into ranks. eg: If there is a process with assigning of cheques, even if the process is not a voice based one, was given the highest ranking.It was decided so because, a mistake of puting one extra zero in a cheque can create a big loss to the organization.

3. After the performance appraisal ranking was done by each individual process, they redivided the budget of every process into the ranks allocated to each process.

eg : the process assiginig cheques would have the highest budget, followed by the next process.

4. Thus they divided budget among the individual team members in each process according to thier individual rank .

eg : If the buget allocated to a process is 50 lacs,

then the top ranker with a rating of 5 will get a hike of nearly 35-40 thousand.

Again the buget for different ranks depended on the number of team member in the process.

I hope I have answered your question, If not, Please let me know.

I will surely try !

Regards

(Cite Contribution)
dear ,
we did the same thing as you have mentioned to your post. we devide entire those 5 categories but the problem arises when we have to distribute the financial rewards in accordance with the gross salaries corresponding to the their percentage or performance category. Every department has its corporate cap For example 10% of gross salaries 15% of gross salaries or 20%, apart of 5% inflationary increment across the board. We still dont have the system to rank the important activity rather we have put that system on gross salaries. if i put the all the employee (with different designitions and diffrent gross salaries) of any category like top performer then they wont get increment matching to their gross salaries
Hello !
I read about the situation. Its true that a condition like this , creates a lot of confusions, and repurcurssion among the employee later on.
What I can suggest,
1. You can add, an equity amount to the increase, ie staying with the organization, for a long time.
2. Please take proper sessions with the work force, before distributing the increment letter.I remeber, we had a tough time, making every body understand, this calculation and further ranking of every process. It had alomst run the risk of creating employee disatisfaction.
3. If possible employ an external consultant, to rank your processes.
4. They will give an external perspective to the process of ranking, thus keeping away any kind of predujice.
Please let me know, if you have any questions.
Regards
(Cite Contribution)
Hi!
My company, Emilla Consulting, can help you.
Contact us if interested and with budget: EMILLA CONSULTING - Home
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
Tel: 00632-8289842


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