Navigating First Performance Reviews: Seeking Advice on Appraisals and Employee Benefits in a BPO Startup

Dear all,

I am working for a BPO as an HR professional in a startup company. We will be conducting our first performance review and appraisal in the coming months.

Can anyone help me with the following:

1) What should be the minimum and maximum hike a company can give? Are there any rules for it? Are there any calculations attached to it?

2) Is there any appraisal for HR professionals? How is that done? In my company, it's only me handling HR, so how will my appraisal happen?

3) What are the various motivational and retention schemes that we should follow for a BPO company? We work only in day shifts.

4) Should Sodexo meal passes be a part of CTC or can they be given out of CTC?

Thanks and regards,
Neetu

1) What should be the minimum and maximum hike a company can give? Are there any rules for it? Are there any calculations attached to it? It depends. Star performers have to be retained by giving a hike but make a contract to stay in the company for a certain period.

2) Is there any appraisal for HR people? How is that done? In my company, it's only me who is handling HR, so how will my appraisal happen? Show the data of interviews done, successful works, etc.

Dear Neetu,

Please find my inputs as follows:

1. What should be the min. and max hike a company can give? The minimum hike can be anything between 3-5% and the maximum is 10-12% in today's job scenario. Though this would depend on the total organization budget.

2. Are there any rules for it? Hikes are performance and market-oriented. The best performer gets the highest hike whereas the least gets the lowest. Again, hikes are given to bring every employee to the same pay level. I suggest you form a matrix as shared below:

Performance Scores Grades Hike

1 A1 - A3 2 - 5%

2 B1 - B3 5 - 7%

3 C1 - C3 10 - 12%

3. Are there any calculations attached to it? Yes, a detailed one. If the number of employees is few, you can do it from a master sheet. In case there are more employees and you require a Bell Curve, then your calculation would be different. [Links provided for further information]

4. Is there any appraisal for HR people, and how is that done? HR Appraisal is quintessential. It is done based on the KRA as mentioned in the link. Please set the same in a scorecard format with absolute scores and present it to the person who would appraise you. Please make sure you explain the scorecard well. [Link provided for more details]

5. In my company, it's only me who is handling HR, so how will my appraisal happen? Your appraisal would be done by your reporting manager.

6. What are the various motivational and retention schemes that we should follow as per a BPO company? We work in day shifts only. You can consider a host of retention programs. The feasibility of applying them within your organization would depend on your budget and how far you can implement them. When you bring in such a program, please conduct a detailed Town Hall so that you have your employee buy-in.

7. Should Sodexo meal passes be a part of CTC or can they be given out of CTC? Sodexo coupons are a part of the CTC, given to lessen the tax burden for the employees. [Links provided for more details]

Thank you.

Hi Cite Contribution,

Thanks a lot for helping in sorting out the queries. For so many days when I did not get any answers, I really felt bad and decided that I will not post any queries in the future. But you have instilled my faith in Citehr again. Thanks for all your suggestions and great help.

Best Regards,
Neetu

Hi Neetu,

Thanks for your words.

A hike is a percentage of the basic salary. Though at some places, it is given on gross, find the calculation which is most sustainable for you. The business climate might be getting better, but your organization can expand. Hence, plan the hike accordingly. You would be setting expectations, so handle it sensitively. Make communication with your employees, explaining how the salary benchmark has been done. The BPO talent base is very volatile. A small difference can cause instant damage. Please have your leaders and employees buy-in throughout the process.

I hope I have answered. But understand the implementation is now completely up to you. Learn as much as you can while working through it. Please research a bit about the compensation before you implement it. Do let me know if there is anything more you are looking for.

I have sent an invite to other seniors, looking for their input!

Keep learning and sharing with us.

Regards, (Cite Contribution)

Hi Cite Contribution,

Thank you for the insightful knowledge. I am going through all the articles on compensation and benefits on various HR sites. I am also exploring the different motivation and retention schemes that different companies in the BPO sector are using.

Once again, thank you for all your help and guidance.

Regards,
Neetu