How Do I Set Up a Fair Performance Appraisal and Increment System in a Startup?

Dear All Seniors,

Can anybody guide me on the Performance Appraisal procedure and also how to prepare increment slabs? I am working in a startup company where we do not have any process or system for appraisals and increments. Whenever bosses feel to give increments, they provide them. However, I joined this company and implemented all policies, but I just need your guidance on PMS and KRAs for increments. We have a Sales Outbound process.

Kindly guide on this, please.

Thanks

Understanding Annual Salary Increments

Annual salary increments are based on performance slabs, which could be structured as follows:

- ≥ 91%
- 81% to 90%
- 71% to 80%
- 61% to 70%
- ≤ 60%

These slabs can vary according to your requirements. However, accurately measuring performance is a major challenge. You must quantify exact performance, as inaccurate measurement can lead to incorrect salary increases. For accurate measurement, you need to implement a performance meter for employees. How can this be done? To learn more, please refer to my reply in the following thread:

https://www.citehr.com/511936-perfor...ml#post2190995

Though the thread's heading is for IT companies, the reply is applicable to all types of industries. In the provided link, you will find several other links. I recommend going through all the links patiently to enhance your awareness of the subject.

Sample KPI and KRA Manual

If you wish to understand the structure and format of the KPI and KRA Manual, you can click on the following link. The Excel Workbook consists of multiple sheets, each containing KRAs for various functions. Although these may not be directly related to your industry, they will provide you with an idea of the format, structure, and design of the manual.

https://www.citehr.com/520630-samle-kpi-kra-manual.html

For any further doubts, you may reach me on my mobile number.

Regards, Dinesh Divekar [Phone Number Removed For Privacy Reasons]