Market Influence On Appraisals

I wanted to know how much are the appraisals dependent on the market rate & how does one determine the market rate of a particular position in particular city.
My other question is regarding the current appraisal rate in a bpo sector in Gujarat,if anyone may have information about it.
Also , want to add if the inflation rate is also a significant factor for appraisals.
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I wanted to know how much are the appraisals dependent on the market rate & how does one determine the market rate of a particular position in particular city.
My other question is regarding the current appraisal rate in a bpo sector in Gujarat,if anyone may have information about it.
Also , want to add if the inflation rate is also a significant factor for appraisals.

Market DOES NOT influence the appraisal rate. Appraisals are influenced by employee performances. Increment percent is influenced by company revenues and its profits.

1. cost of living indexation ie inflation is a part of compensation.
2. labour arbitrage ie both external & global equity is again a part of Comp & Ben.
3. appraisal is simply measuring performance.. this has nothing to do with market forces.
4. increment rates vary across companies/ locations
to understand increment rates, you will need to get access to Hay/ Towers compensation survey reports.

Apprisals are based on the individuals performance, group performance & financial performance of the company. You can decide the weightage of these performances and apprisals to be concluded. Market rate is also an important factor which stave off the attrition rate. Inflation is also to be factored in while deciding the min. increment.
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