Why Do HR Professionals Get Smaller Raises Than Developers? Can We Negotiate Better?

I have one doubt, please. I have seen that even though working as an HR professional, when our appraisal period comes, our increment percentage is very low compared to developers or other profiles in the organization. Can anyone suggest something on this? Are they doing it correctly, or can we argue with the management about our hike? According to me, even though we are working hard and are an asset to the organization, why is our hike very low compared to them? I am not asking for the same hike, as I too agree that because of them, the company revenue has increased. At least, moderately, what percentage can we negotiate for the appraisal?

Performance Appraisal Process in Professional Companies

In professional companies, the process of Performance Appraisal (PA) is conducted in a very organized manner. To do this, they measure performance scientifically. Key Result Areas (KRAs) sheets are provided at the beginning of the performance cycle, and later performance is measured only against the KRAs. Annual salary increments are linked to the performance slabs. Employees are given salary increases based on the performance slabs. This type of process leaves no room for the disgruntlement that you are experiencing now.

You may talk to management for the revision of the PA process. For further information, you may click here to go through my reply on the past post.

Thanks,
Dinesh Divekar

Dear HR colleague, with this post, my friend, you have raised very fundamental issues of the prevalent performance appraisal system and its linkage with salary raises. It points out the unconscious bias of regarding revenue-earning functions/individuals as superior to support functions in terms of salary raises. This age-old belief continues even today. It is time to do some rethinking on the practice and principles in this regard.

Principle of Equity and Fairness

The principle of equity and fairness demands that employees rated and falling in the same rating scale (Outstanding, Excellent, Good, and Average) should ideally be given the same percentage of increase regardless of revenue-earning or support roles. On the other side, clubbing performance into such black and white boxes, disregarding the grey shades of performance (individual differences), would demand designing a system of near-accurate performance rating and fair linkage of the percentage of increments based on relative individual contribution.

This is easier said than done, and I have yet to come across a system that embraces and knits all the principles in a balanced, foolproof, and practical manner. It remains a challenge for many creative HR professionals, researchers, and practitioners. I would like to invite views from learned members and address the issues raised, which are very dear to the hearts of employees, in general, and HR, in particular.

Regards, Vinayak Nagarkar HR Consultant