Hi all,
I have started the HR department in an IT company. I have approximately 3 years of experience but no prior experience in handling Performance Management Systems (PMS).
I need to understand what the growth rate of an employee should be in terms of salary throughout the year, i.e., what percentage hike should be given to the employees. Also, what is the industry average in this case?
Currently, we have decided on a growth rate of 17.5% - 18.5% for top performers. Is this rate decent enough?
I am seeking suggestions and help from all the fellow members. Kindly assist.
Regards,
Bhavna
From India, Delhi
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33I have started the HR department in an IT company. I have approximately 3 years of experience but no prior experience in handling Performance Management Systems (PMS).
I need to understand what the growth rate of an employee should be in terms of salary throughout the year, i.e., what percentage hike should be given to the employees. Also, what is the industry average in this case?
Currently, we have decided on a growth rate of 17.5% - 18.5% for top performers. Is this rate decent enough?
I am seeking suggestions and help from all the fellow members. Kindly assist.
Regards,
Bhavna
From India, Delhi
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Your average/good performer needs to stay abreast of the cost of living index, which in turn is tied in with the annual cost of inflation. So keep your growth rate (increments) linked to that. Check for the cost of living index at the RBI site.
The high performers need to have an inbuilt reward structure plus consideration for the annual cost of living index. The average industry standard is 16%, but that is usually tied to company performance and returns. I would say that your current growth increments for the high performers are pretty good.
From United States, Virginia Beach
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The high performers need to have an inbuilt reward structure plus consideration for the annual cost of living index. The average industry standard is 16%, but that is usually tied to company performance and returns. I would say that your current growth increments for the high performers are pretty good.
From United States, Virginia Beach
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Performance Management System.doc