Performance Appraisals: How Do Delays Affect Employee Increments and Arrears?

What is the right period of appraisal? If in any company an appraisal has not been carried out in the specified period, what is the criteria for increment? Would the employees receive arrears for those months?

Regards,
Shabana

Hi Shabana,

It depends on company policy how much time frame they have kept for appraisal. Generally, it is done on a yearly basis, but in some companies like the IT sector and other small industries, it takes place even after confirmation, i.e., after 6 months only. Generally, performance appraisal is done for only confirmed employees. A certain month is fixed in the year to process the same. And yes, arrears are paid because it takes time to complete the process.

Regards,

Amit Seth.

Dear Shabana,

Quarterly performance evaluation is the ideal period, according to me. Some points to support my answer:

1. If an employee performs very well at the time of increment disbursal, should they be given a good increment? No.

2. If an employee's performance is not up to the mark for some limited period, should their increment be influenced by that for the whole year? No.

Moreover, if the employee's performance evaluation is not conducted, even though they must be given a salary rise according to the prevailing dearness, their salary should be revised retrospectively.

If you have different views, please contact me.

Regards,
Vishal

Dear Shabana,

The appraisal is also done in the company on a yearly basis, but some companies also conduct appraisals quarterly. After confirmation from the employee, it is valid. 🔄

Dear Shabana,

In most of the MNCs, appraisals are done on a half-yearly or yearly basis. In my company, it is being done on a yearly basis. In yearly appraisals, the performance of an employee is evaluated, and these are done by the year-end. However, in confirmation appraisals, although the performance is evaluated, it is more of a formality conducted at the time of confirmation. For example, if someone joins in March, their first appraisal will be done after their probation is over, which is the confirmation appraisal, typically after six months, in August. Subsequently, their appraisal will be conducted again in December (Yearly appraisal) along with the rest of the employees.

Regarding arrears, if the finalization of salary according to the appraisal is done in February, then you will receive the arrears from January added in February itself.