Confused About Timing for Appraisals and Salary Hikes for New Hires? Let's Discuss!

Hi,

Ours is an IT firm. I have designed the appraisal policy for the employees, which states there will be a review of the performance twice a year and a salary hike once a year. This means that a person, upon joining, will have their performance reviewed after 6 months, but their salary hike will occur after 12 months. Therefore, we conduct appraisal reviews in June and January.

However, I am now confused about employees who join in between these months. For example, if a person joins in October 2007, can we conduct their review in December 2007 and give them the salary hike in June 2008? Is this too short a period to do both? If not, what should be the minimum period for conducting the performance review and granting the salary hike?

I would appreciate your suggestions.

JM

Hi,

It has to be dealt with on a case-by-case basis. It also depends on what is negotiated at the time of closing the offer. For example, if a person joins in December 2007, you could offer a slightly higher package than what he expects with a raise in June 2009. Alternatively, you could give him a slightly lower package with a raise in June 2008. Conducting a mid-performance review in a month or two is not advisable.

Thanks,

Hi,

It has to be dealt with on a case-by-case basis. It also depends on what is committed at the time of closing the offer. For example, if a person joins in Dec 2007, you could give him a slightly higher package than what he expects with a raise in June 2009. Alternatively, you could give him a slightly lower package with a raise in June 2008. Having a mid-performance review in a month or two is not advisable.

Thanks,