How Should We Structure Our Annual Review Process for Technical and Commercial Teams?

We have around 20 supervisory/managerial staff divided into two categories: Technical and Commercial.

Technical Category

In the Technical category, we are considering the Quality/Production and Planning departments.

Commercial Category

In the Commercial category, we are considering the Purchase/HR/Stores and EXIM departments.

Annual Review Process

I would like to define the annual review process. Within the same process, I would like to confirm how much percentage of increment should be given, what should be done when resignation occurs and needs to be revised, and which designation should be offered. Additionally, what should be the increment to have?

Kindly advise.

To define the annual review process for your technical and commercial categories, consider the following steps:

1. Performance Evaluation Criteria:
- Establish clear and measurable performance criteria for each department within the categories.
- Define key performance indicators (KPIs) for Quality/Production, Planning, Purchase, HR, Stores, and EXIM departments.

2. Increment Percentage:
- Determine the increment percentage based on performance ratings and budget constraints.
- Consider industry standards and internal equity while deciding on the increment percentage.

3. Resignation and Revision:
- Develop a policy on how to handle resignations during the review process.
- Outline the procedure for revising the annual review in case of resignations.

4. Designation Offer:
- Based on performance, consider offering promotions or changes in designation.
- Align the designation offered with the employee's contributions and growth potential.

5. Increment Structure:
- Define a structured approach to increments based on performance levels.
- Consider merit-based increments to reward high performers and motivate others.

6. Communication:
- Communicate the annual review process clearly to all employees.
- Provide feedback and guidance on areas of improvement and development opportunities.

7. Legal Compliance:
- Ensure that all decisions regarding increments and designations comply with labor laws and company policies.
- Consult with legal experts if needed to avoid any legal implications.

By following these steps and customizing them to fit your organization's specific needs, you can effectively manage the annual review process for your technical and commercial categories in Ahmadabad, India.