Struggling with Appraisal Hikes? How Do You Decide Percentage Increases Based on Ratings?

Hello,

I am working in an IT company, and as part of the performance appraisal, I need to calculate the percentage hike to be given to the employees based on their ratings in the annual appraisal process. We follow a five-point rating scale where 5=Significantly exceeds expectations, 4=Exceeds expectations, 3=Meets expectations, 2=Meets most expectations, and 1=Below expectations.

Now, I need to decide on the ratings to be assigned to the above-mentioned scale. For example, someone who receives a rating of 3 will be given an 8% hike, etc.

Could someone please help me with this?

Thanks and regards,
Monicag

Dear,

You have given the rating regarding performance appraisals. However, I don't know the policy of your company regarding P.A. Could you provide the percentages regarding their rating?

5 = Significantly exceeds expectations: 26% to 35%
4 = Exceeds expectations: 19% to 25%
3 = Meets expectations: 11% to 18%
2 = Meets most expectations: 5% to 10%
1 = Below expectations: 0%

This is my opinion.

Regards,
RAJNISH SAPRA

Hello Rajnish,

Thank you for your reply. My company follows a simple one-to-one performance appraisal method. However, one needs to do some background calculations (like market surveys, inflation rates, etc.) in order to determine the percentage slabs you mentioned. So, my question is: how do you reach these slabs?

I hope I have clarified my question this time. I look forward to the earliest reply as this is quite urgent.

Thanks and regards,
Monicag