New HR Executive Seeking Guidance on Market-Standard Appraisal Hikes for Employees

Hi,

I have recently joined as an HR Executive in a software development company. When I joined here, it was time to give appraisals to some employees. What can be the minimum and maximum hike that we can give to the employees according to the market standards? Please, can anyone help me out quickly because this is my first task in the company.

Greetings,

Please share the vertical and the skill sets you are considering in order to suggest a percentage. Ideally, it's between 0-15%, depending on the performance of the employee and profits generated by the company. However, please do not rely solely on generalized information. This is your first initiative, so proceed with caution. You may refer to PayScale - Salary Comparison, Salary Survey, Search Wages for detailed information in your area.

Wish you all the best.

Regards,
(Cite Contribution)

The framework provided to you is broad. However, I may add that a sum should have been budgeted for the annual raise. The company must have already established benchmarks to appraise performance in alignment with the goals set, in accordance with organizational objectives. You can allocate the budget in percentages to be awarded to the appraisees based on their ratings.

Appraisals should be based on the performance of employees. You may divide the performance into the following categories: Below Average, Average, Good, Very Good, Excellent. Salary should be increased according to the categories: Below Average - 0%, Average - 5%, Good - 10%, Very Good - 15%, Excellent - 20%. It is advisable to discuss with your management the percentage increases for the above categories.