How Do Small Software Companies Handle Twice-Yearly Salary Hikes? Seeking Your Insights

Hi All,

I am framing an Increment Policy. We are a software company with a team size of 30 at present. We want to give a salary hike in April and October. We are following a 360-degree Appraisal System. Please let me know your thoughts on giving a hike twice a year. Also, those working in small and medium-sized software firms, please share your Increment Policy.

Hike twice a year! I'm hearing this for the first time. It's good, but there will be difficulty for you to appraise those people who are not performing well. Then what will you do?

Hi Raksha,

I would like to suggest the following:

- Conduct a study on compensation and benefits offered by similar reputable companies, considering factors such as manpower strength, turnover, and profits.
- Include points related to increments, quantum, etc., within the study itself.

This will provide you with an understanding of where you stand in comparison to your employees and the benchmarking standards for each position.

By the way, could you provide information on the 360-degree appraisal system? If you have any related documents, could you please share them with me?

Regards,
Vsure