Performance Reviews Without Raises: How Do You Handle Employee Concerns and Expectations?

Hi all,

Can anyone help me with the pros and cons of a performance review conducted without a monetary raise (there can be a raise in terms of designation and responsibilities)? What are the things to be kept in mind to carry out this procedure, and what can be the various possible concerns from the employees regarding the same?

Awaiting your inputs.

Thanks.

Hi Pooja,

Don't feel bad, but please search about performance appraisal/review in the Top Center dialogue box of this page on citehr, and you will find a lot of topics and answers.

Siddharth

Hi Siddharth,

Thanks for your reply. I have already searched CiteHR for this. I believe this is a specific case where a performance review is conducted, but it's predetermined that there shall be no monetary raise, at least not immediately. I have read that many organizations have been following this practice, where despite a freeze in increments, performance reviews are conducted in a timely manner. I wanted to know if this is a sound practice or if it may backfire, as a review is typically associated with a salary increase.

Awaiting inputs on this.

Regards,
Pooja

Hi Pooja,

I have practically done the same in my previous company - performance appraisals with no increment or minimal increments at the lower level. It definitely attracts people towards other jobs, but you have to have a proper plan. Do let me know exactly what you want; maybe I can help? Please let me know your company details.

Siddharth

Hi Pooja,

Performance reviews do exist without monetary raises; how they are conducted depends on the organization's appraisal systems. As an employee, you should seek clarification regarding career growth opportunities and also inquire about the time frame within which monetary and other related benefits can be obtained.

Regards,
Jitu

Hi,

As mentioned by others, not all performance reviews result in monetary benefits unless your organization has a practice or policy in place for it. First and foremost, you need to clearly communicate what you are planning to do and the reasons for doing so. Then, you should explain how you plan for the next performance cycle and the challenges that may arise in achieving or preventing monetary benefits.

First, convene with the managers and seek the assistance of the management team so that they will uphold their commitment. Do not present information to the managers without the management team unless you have written commitment from them (which is practically not possible).

Arrange for small informal meetings with a few employees, with and without managers. This will help you manage the presentation to all employees effectively.

Ensure that you have all the necessary statutory documents ready.

Regards,
Vijay