Please Help On Annual Increment Of Employees Based On Performance

working in an IT firm in kerala,with a strength of 30.Decided for salary hike for employees this December but purely based on performance.would be great if anyone can help on this?
Please share if there is any tool/software that we can calculate the annual increment effectively.

Point No: 1 Please ask to your management for the Overall budget for salary hike means how much we go upto.
Point No: 2 Please assess your employee rank on various methods and accordingly
if employee get 10 points he/she will eligible for hike 20% of his salary.
if employee get 8 points he/she will eligible for hike 18% of his salary. ... etc
Point No: 3: Finally, prepare the calculation sheet and put up to your management.
if any query please contact to me 7760270856 or [Login to view]

Point No: 1 Please ask to your management for the Overall budget for salary hike means how much we go upto.
Point No: 2 Please assess your employee rank on various methods and accordingly
if employee get 10 points he/she will eligible for hike 20% of his salary.
if employee get 8 points he/she will eligible for hike 18% of his salary. ... etc
Point No: 3: Finally, prepare the calculation sheet and put up to your management.
if any query please contact to me 7760270856 or

If you have budget,
Follow this method to step up the performance appraisals:
1) Self assessment of employee - give questionnaire important to work delivery
2) Reporting Manager assessment of employee
3) HR assessment of employee
Based on three cumulative assessment give true increment instead just flat fixed % of slab. Every individual will get his own performance level increment not comparision in a slab.
Thank you,
Regards,

If you have budget,
Follow this method to step up the performance appraisals:
1) Self assessment of employee - give questionnaire important to work delivery
2) Reporting Manager assessment of employee
3) HR assessment of employee
4) Management verification of justification that would just add value even not required.
Based on three cumulative assessment give true increment instead just flat fixed % of slab. Every individual will get his own performance level increment not comparision in a slab.
Thank you,
Regards,

Dear Emilz,

You have to work on two parallel systems of

1. Performance Assessment

2. Salary and Rewards

And then link them together.

In performance Assessment, you need to rate people based on performance and establish the distribution.

For example, if your performance rating system has a 5-Point scale, (for the sake of example, let us assume that 1 is the worst performer and 5 is the best performer), then establish how many get Ratings of 1, 2,3 4 and 5

Once you that - work on Salary and Rewards systems starts.

Get clarity from your seniors- how much Rupee budget do you have to give as increments. (In other words, your existing payroll cost is hundred, then what is your budget to take it up to ? 115, 118, 120 ? In % terms, it would mean 15%, 18% or 20%)

Suppose they say that you have 15% budget on existing salaries , then prepare a plan on the distribution based on the actual dispersion.

Do some mathematics to establish how much increment employees with rating 1 would get and like-wise. In this example, employees with rating 5 should get the highest increment and 1 gets the least.

In Salary and Rewards we also look at Inflation % and decide whether Inflation becomes your minimum increment point.

Hopefully this would have helped you.

If you need more details, please drop in a mail to [Login to view]

I would be happy to help!

All the best!

regards,

Rajesh

I concur with the views of Mr.Rajesh, it has to be done in the simimar way but in some organisation it depends on its own policy