Feeling Undervalued After Appraisal: Should I Escalate My Concerns or Let It Go?

Situation Overview

I worked for 6 months in India and 6 months in the US (on India payroll). During the first 6 months, I was under Manager 1, and for the second half, I was in another team under Manager 2. Both managers fall under the same umbrella with the same senior manager.

This setup means the appraisal cycle for the first half is with Manager 1 and the second half with Manager 2.

Preparation for Appraisal

I had a feeling they wouldn't allocate a budget for me since I am in the US. To prepare, I sent all my work, appreciation emails from customers, etc., two months in advance to all managers and senior managers. I even scheduled a 1:1 with my new manager to review my work.

Appraisal Cycle

I expected both managers to review and rate me. However, during the meeting, I realized they had not communicated to decide my rating.

Manager 1 provided my rating and a 5% hike. Manager 2 said I am doing a GREAT JOB with no complaints or improvement suggestions.

When I asked why the hike was only 5%, the reason given was that I am overpaid compared to my peers.

I used to receive 15%+ regularly, so 5% seemed unusual to me.

Next Steps and Dilemma

I expressed my dissatisfaction, and they arranged a call with the Senior Manager. As expected, he reiterated that it's an act of rebalance, and I am overpaid compared to peers.

Now, I have the option to escalate to the director, HR, etc. However, the Senior Manager mentioned that it might not help much since it's a directive from top management.

I am now confused about whether to escalate further. I have a good relationship with all these managers, so I am unsure if I should pursue my case further.

Any advice? Thanks for your time.

Salary Hike Practices for Onsite and Offshore Employees

I have observed a general practice where people working onsite (Indians working abroad) receive a 5-8% salary hike. This is considering that they are earning in dollars, which itself is a significant incentive. Your savings onsite are multiplied by the dollar conversion rate when sent back to India.

People working offshore and facing inflation here receive a 10-20% hike. I believe that this action is justified.

Regards,

Well, you can definitely discuss it with your seniors, but most likely you will get the same response. You have the right to question them. Escalation is not harmful if done as per the process and in a humble manner. Your seniors will not get offended. It's always good to try. 

Performance Appraisal Process and Managerial Responsibilities

Normally, the performance appraisal at the end of the year should be conducted by the manager to whom you were reporting at that time (unless you have been informed that your manager in India is the primary manager, i.e., your designated appraiser). In either case, the authorized person to initiate your appraisal is supposed to collect performance inputs from the second manager (for the period served under him/her). You, as the appraisee, are not required to send such performance inputs to anyone. That is what happens in mature organizations.

These days, software support systems like 'EmpXtrack' are available, which enable the reporting manager (appraiser) to collect online inputs (in writing) from the second manager (and from other managers, if required) about your performance record while serving with them.

While I agree with the other experts (who have given their opinions above) that no useful purpose will be served in raising the issue, you can certainly clarify with your HR how the current system works. You are welcome to share my comments with HR so that they are aware of the modern tools which enable the refinement of existing processes to make them more objective and employee-sensitive.