How Can We Fairly Determine Salary Increments Without Relying on Appraisal Ratings?

Dear All,

I work for a company that uses annual performance ratings to determine the salary increments an employee receives. The ratings are primarily determined by the achievement of Key Result Areas (KRAs). The increments are mapped one-to-one with the ratings (for each rating, there is a corresponding %).

I have noticed that the appraisal, as a genuine feedback mechanism, has not achieved its purpose. We are now attempting to delink the ratings from the increments. Please help me with suggestions on what other parameters we can link the increments to.

Thanks in advance for your help.

Regards,
Anita

Link to increase. People may say we should delink, but how do you reward people? Rewarding is done based on performance. Rewards could be an increase in salary or promotion.

Siva