Optimizing Employee Appraisal Process: Transition Strategies and Prorata Increases

Hello HR folks,

Greetings for the day!

Please help with the situation below. In our organization, we were conducting appraisals annually. However, there is an issue. For example, if an employee joins in September 2011, we perform their appraisal every year in September. Instead of this, now we want to streamline our process and conduct all appraisals in April every year. We aim to overcome this chaos as currently, every month one or two employees have their appraisals pending. How can we achieve this?

Please assist me in this situation.

Thanks,
NK

Thank you, Narsimhan,

We can implement this for new employees. However, what about existing employees who have appraisal cycles in different months such as July, August, or September? How can we apply the April appraisal system to them?

Regards,
NK

You can do the same. Companies can always change rules and regulations at will. However, if your appraisal is linked to them getting a performance bonus, then pay some prorata compensation. As you have not given enough information about the organization and its scheme, we can provide only general guidelines in this forum.

It is possible to ensure equal treatment when streamlining processes. Such shifts should be introduced during the appraisal period following the Prorata principle.

1. A person who joins on the 1st of April is assessed for a full term and will receive a full increase after the appraisal.

2. An employee joining in June will be appraised for 10 months and will receive an increase on a prorated basis. The formula to apply is: 10 * full increase / 12.

3. This approach should be implemented for all employees in the year of transitioning from the current to the new practice.

4. New employees will be assessed upon completing one year. In the subsequent years, they will be brought under this system and receive a prorated increase.

5. It may be necessary to establish a rule that new employees confirmed after September will not be reviewed the following April. However, when they are included in the common April review, they should receive an increase reflecting more than 12 months of service. Some organizations do not apply the prorata principle to new employees.

I have successfully managed this transition in at least two companies in the past, and it has been effective.

Hi,

Thanks for your reply, but I am still confused about what we can do for those who are getting their appraisals done in different months. Let me take an example. I have been working with XYZ Company for the last 10 years, having joined on 1st October 2000. Every year, my company conducts my appraisal on 1st October. Now, if the company wants to shift it to April, how can they make this transition? What can we do for employees, as they may feel demotivated? How can we convince them, and what strategies can we apply?

Please help me!!!

Thanks,

NK

I am attaching a worksheet showing the increase on prorata. From this, you will find that the employee does not lose any money in the year under review. This has been used with success across and this is the only solution as it maintains parity. You can show this calculation to employees to convince them.

Thanks

Hi,

I joined a fitness organization as a fresher in HR & Admin Executive in December 2012. Now, my senior has asked me to maintain appraisals for the trainer and sales executive. Since I don't have the previous records, how can I do it? Can anyone help me with maintaining it from December '12 onwards? I also do not have the format with me.

Thank you.