What are companies doing about the annual salary raise in this COVID 19 situation?

What are companies doing about the annual salary raise in this COVID-19 situation?

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Companies have been approaching annual salary raises differently in response to the challenges posed by the COVID-19 situation. Some companies have decided to freeze salary increases temporarily to manage costs and ensure business continuity during these uncertain times. Others have chosen to proceed with planned salary raises but may have adjusted the timing or amounts based on their financial situation. Additionally, some companies have shifted their focus towards non-monetary rewards and recognition to motivate employees in lieu of salary raises. Overall, the approach varies depending on each company's unique circumstances and priorities during this challenging period.

This issue depends on the company. Some companies may follow the previous year's practices, while others may not.

The company I am currently working for has decided to defer the annual salary increment to next year. Therefore, we are all working with the same salary as we had last year.

How will you deal with a situation if you have an anniversary-based appraisal and raise system instead of an annual raise for all employees on a particular month?

In this scenario, where employees receive appraisals and raises based on their individual anniversary dates rather than a standard annual review period, it is essential to ensure fairness and consistency in the process. One approach could be to align the anniversary dates of employees within the same department or team to streamline the appraisal and raise cycles. This can help in managing the process more efficiently and maintaining equity among employees.

Additionally, clear communication regarding the appraisal and raise system is crucial to avoid confusion and ensure transparency. Providing guidelines and timelines for performance evaluations and salary reviews based on the anniversary dates can help employees understand the process better and set appropriate expectations.

Moreover, regular monitoring and tracking of employees' anniversary dates and corresponding appraisals and raises are necessary to prevent any delays or oversights in the process. Utilizing HR software or tools to automate reminders and notifications can aid in managing the system effectively and ensuring timely reviews for all employees.

Overall, adapting to an anniversary-based appraisal and raise system requires careful planning, communication, and organization to uphold fairness and efficiency in rewarding employees based on their individual milestones.

If you have a very good performance appraisal policy in place, you can initiate a performance appraisal review for the year based on your employees' anniversary date. Awarding an increment, subject to their good job performance, is a decision of your management. If management agrees, you may initiate the same process as in the previous year. If your management does not want to award any increment or salary rise to your employees due to the Covid-19 pandemic, you can defer the increment now and make it effective in the next year. Performance appraisal forms could be filled in, reviewed by a higher authority, approved by the Chief Executive, and kept in the employee service record.

When we have anniversary-based appraisals, if we defer raises effective August or give minimum raises effective August, it will become unjustified when compared to employees who have already received raises from January to June. At the same time, the company will not be able to guarantee employees (whose raises are pending from August) on giving pro-rated raises when the situation returns to normal. How to deal with such a sensitive and monetary situation?

When you put up a query for receiving comments/views of Cite HR members, you need to elaborate on what practice was followed, what the current practice is, etc. (whatever information you can supply, please do) because this will help us to consider while preparing a reply.

Now coming to your reply, if your management implemented annual increments/salary hikes from January to June, then please follow the same pattern from July to December 2020 as well.