How Do You Handle Annual Increments for New and Long-term Employees in Performance Appraisals?

Hi all,

I just want to ask about the performance appraisal process. If we decide to designate one month, let's say March-April, for the annual increment for all employees, how should we proceed? What about employees who have recently joined; would they also be eligible for the increment? Additionally, if an employee completes one year of service in December, would they be entitled to arrears until March-April?

I would appreciate your insights on this matter, as some of us may have a similar performance appraisal system in place. Could anyone provide information on the appraisal forms for software developers, test engineers, and sales personnel?

Thank you.

Hi,

I might help you out by letting you know how we work out our PMS. We deploy our employees on a 6-month probation period. After this period, we increase their salary (based on performance) a bit. Then annual increments are given in April. The purpose of doing such an exercise is to ensure that all employees receive their share of increments. We have the option to do either of the following:

- If he's joining us, say in July, then his confirmation shall be in the month of December. We can increase his salary in December, keeping in mind a margin for increasing his salary again in April.
- If he's joining us, say in December, then we increase his salary either in April or upon confirmation, not twice.

FYI, we are using the first method in which we give two tiny increments (that actually are the two parts of one justified increment) within a span of just one year. This way, all our employees stay happy and engaged.

Hope this helps.

Regards,
Parul

Hi,

I hope my below-mentioned points can help you while making a decision:

1. Normally, whoever joins on or before 1st October is eligible for an appraisal. The logic behind this is that they should be able to complete six months in the organization.

2. Next comes deciding the increment %. If you want to make some changes in the increment, you can split the total increment % into two parts. The first part can be given once they complete the six months, and the second part during the appraisal.

I hope this information will help you make effective decisions. Feel free to ask if you have any further queries.

Regards,
Sitaram

I am drafting an appraisal policy for my company. I divided all the employees into three categories:

1. IT department
2. Sales & Marketing department
3. General staff (accounts, admin, HR, etc.)

I want to invite your invaluable suggestions for the following points:
1. What should be the phases of this appraisal system for different categories?
2. How should performance incentives be associated with the different categories?
3. What should be the rating parameters and patterns?

Any other suggestions you may have are most welcome.

Regards,
Rubina Ansari