Dear Friends, Please answer my question, "Performance Appraisal and Salary Revision are same thing or different?". Santosh M.
From India, Mumbai
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6From India, Mumbai
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Both are different. Performance appraisal is held at regular intervals, wherein increments are linked to the performance of the employee concerned. Thus, performance appraisals are individual in nature. Salary revision is the result of wage fixation through collective bargaining by the union, usually after the expiry of the existing award or settlement on wage fixation. Therefore, salary revision is universal in nature and is linked to factors like cost of living and industry norms, etc.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Performance Appraisal vs. Salary Revision
Performance appraisal is a process, while salary revision is the outcome of a performance appraisal. Both are key elements of a Performance Management System.
Reasons for Salary Revision
1. Inflation-driven revision - Given to match the cost of living.
2. Service increment - Usually a flat percentage given across the whole company; non-performance related. Item 1 may fall into this category.
3. Market catch-up revision - It is determined that the current pay structure of the company is lagging behind the market/industry, so an additional component (on top of the service increment) is given to catch up with the market to be competitive.
4. Merit increment - An additional component (on top of the service increment) given to recognize above-average performing staff.
5. Probation revision - When a company has a probation policy that states a salary revision of a certain percentage or amount will be given if new hires successfully complete the stipulated probation period.
6. Promotion revision - When a company has a promotion policy that states a salary upgrade (from one grade to another) to recognize an enlargement of job scope.
Have a positive weekend.
Regards,
Autumn Jane
From Singapore, Singapore
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Performance appraisal is a process, while salary revision is the outcome of a performance appraisal. Both are key elements of a Performance Management System.
Reasons for Salary Revision
1. Inflation-driven revision - Given to match the cost of living.
2. Service increment - Usually a flat percentage given across the whole company; non-performance related. Item 1 may fall into this category.
3. Market catch-up revision - It is determined that the current pay structure of the company is lagging behind the market/industry, so an additional component (on top of the service increment) is given to catch up with the market to be competitive.
4. Merit increment - An additional component (on top of the service increment) given to recognize above-average performing staff.
5. Probation revision - When a company has a probation policy that states a salary revision of a certain percentage or amount will be given if new hires successfully complete the stipulated probation period.
6. Promotion revision - When a company has a promotion policy that states a salary upgrade (from one grade to another) to recognize an enlargement of job scope.
Have a positive weekend.
Regards,
Autumn Jane
From Singapore, Singapore
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