How Can We Smoothly Transition to a Yearly Appraisal System Without Employee Concerns?

I am working as an HR professional in an IT organization. Currently, we follow an Individual appraisal cycle, meaning that once an employee completes one year, their appraisal is conducted, and the salary hike becomes effective from the same month the following year.

As the number of employees has increased, we are considering transitioning to a Yearly appraisal system where all employees will be appraised at the same time, potentially in either April or September.

I would appreciate your suggestions on how we can communicate this change to employees without causing any apprehension or concerns among them. Please advise.

Regards,
Manisha

Annual Appraisal Month: A Standard Practice

Irrespective of the size of your company, it is a general practice to provide a salary hike after the completion of one year. The company usually designates a specific month as the "Annual Appraisal Month" (any month from January to December). This practice ensures that you can offer a proportionate hike during the "Annual Appraisal Month" and regularize the appraisal process for all employees from that month in the following year.

Regards

Hi Prashant, thank you for your suggestion, but how and on what basis should a proportionate hike be provided during the "Annual Appraisal Month," and who should be included? For instance, what should be done if someone joins in October or November?

Regards,

Hi Prashant, thanks for your suggestion. How and on what basis should a proportionate hike in the "Annual Appraisal Month" depend on the KRA and KPI achievements per month? Who should be included—those who have completed one year in the organization and whose appraisal is due?

For example, if someone joined in October or November, they are supposed to receive their appraisal after completing one year from joining in October or November. Suppose the annual appraisal month is decided as April; then the person who joined in October 2011 will get their first appraisal in October 2012 and the annual appraisal with other employees in April 2013 based on performance from October 2012 to March 2013.

Regards

Thank you for clarifying my doubts. I have one more question here.

In this case, an employee who joined in October 2011 and is getting appraised in March 2013, almost 1 year and 5 months have passed. Would this be okay from an employee perspective? Or should they be eligible for arrears from October until March for the hiked salary?

Regards,