Understanding Appraisal vs. Increment: Can Someone Clarify the Difference?

Hi,

Can anyone clearly explain to me the difference between appraisal and increment?

To my knowledge, an appraisal occurs yearly, but what about an increment? Please help me out.

Regards, Rekha

Hi Rekha,

Appraisal and salary increment are two different things. The process of appraisal emphasizes on assessing individuals based on certain skills and competencies required to perform their job and on the basis of KRAs (Key Result Areas). After the appraisal process, the individual comes to know about his strengths and weaknesses. On the other hand, an increment in salary is a part of the compensation planning process, and inputs from the appraisal are required to decide on the increment in salary.

Performance appraisal is an evaluation method where the employee's work effectiveness is measured using operational criteria such as performance metrics, social behaviors, Objectives... it aims on how well the employees meet job specifications and what can be done to achieve higher productivity .
Now Salary Increment is just one of the positive outcomes on Appraisal. An employer may choose to review the salary so as to reward the good performance. Not all appraisals are necessarily Accompanied with salary increments.
A performance appraisal decision can affect the status of employee in regards to their retention, termination, promotion, transfer, salary increase or decrease, or admission into a training program.

Hi,

I recently joined an IT company two months ago. I understand that I am not eligible for an appraisal, but they promised me a salary hike after three months. My question is, if my salary is increased, is it called an increment or something else?

Please clarify. I hope my question is clear.

Regards,
Rekha

Rekha, You are right. Any revision that results in an increase in your salary is called a "salary increment".

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Can someone help me? Is an employee eligible for an appraisal and increment in the same month?

Ms. Remi,

As mentioned by friends, Appraisal and Increment are two different things, yet they are correlated (more or less). Appraisal contains Key Result Areas (KRAs), Achieved Targets in time, shortfall, reasons for not completing, Training required, Reporting/Relation in a vertical/horizontal way with seniors/colleagues/subordinates, etc.

Depending on the total rating as per Company Procedure, one gets a recommendation for Promotion/Increment.

Regards, Y.R. Shirke