Performance Appraisal Process - Performannce Appraisals [Thread 453614]

Hi all,

I am working in a start-up IT company, and I want to create a policy for the performance appraisal system. Could you please help me with the process of performance appraisal? Suppose we decide to conduct the performance appraisal once a year in the month of April, then how should the employees be considered?

Suppose 10 employees have completed one year by April, and 5 employees have just completed 6 months by April. How can they be evaluated for performance appraisal and increments?

Thank you.

Hi Shweta,

For employees completing one year in the month of annual appraisal, you have to take feedback from their respective managers about their performance and also get an increment rating. The increment rating can be taken on a scale of 1 to 5 (1 being the lowest and 5 being the highest). Once you get the increment ratings, management can decide upon the percentage increment for each rating. Ideally, it is as follows:
1 - No hike
2 - 3 - 5% hike
3 - 10% hike
4 - 12 - 13% hike
5 - 15 to 18% hike.

You can change the above figures as per your company's profit for the last year.

Now, employees who have not completed one year at the time of the appraisal, you can still take the ratings as stated above and pay them on a pro-rated basis as per the ratings received.

Let me know if you still need further clarification or any help. Thanks...