Dear all,
How can we link the salary increment to the bell curve performance evaluation method? I have to calculate the performance through the bell curve, whereas different departments have different budgets for salary increases on gross salaries of their employees. How can I distribute this?
Kindly help me out.
Thanks
From China
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How can we link the salary increment to the bell curve performance evaluation method? I have to calculate the performance through the bell curve, whereas different departments have different budgets for salary increases on gross salaries of their employees. How can I distribute this?
Kindly help me out.
Thanks
From China
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Hi!
I have worked in BPO, where this method was applied in PA.
They did the following activities:
1. They divided the entire workforce into the following percentages:
a) 5-8% with rating 5 [Top rankers- Excellent, Exceed expectation.]
b) 12-15% with rating 4 [Next level rank- Good]
c) 70% with rating 3 [Satisfactory performance- Achieved expectation]
d) 10-12% with rating 2 [Needs improvement, have the potential to do better]
e) 5-8% with rating 1 [Poor performance, continuously missing targets, to be put in PIP]
2. Then they divided the process according to their sensitivity to the client into ranks. For example, if there is a process involving the assignment of cheques, even if the process is not voice-based, it was given the highest ranking. This decision was made because a mistake of putting one extra zero in a cheque can create a significant loss to the organization.
3. After the performance appraisal ranking was done by each individual process, they redivided the budget of every process into the ranks allocated to each process. For example, the process assigning cheques would have the highest budget, followed by the next process.
4. Thus, they divided the budget among the individual team members in each process according to their individual rank. For instance, if the budget allocated to a process is 50 lacs, then the top ranker with a rating of 5 will get a hike of nearly 35-40 thousand. Again, the budget for different ranks depended on the number of team members in the process.
I hope I have answered your question. If not, please let me know. I will surely try!
Regards,
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From India, Mumbai
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1872I have worked in BPO, where this method was applied in PA.
They did the following activities:
1. They divided the entire workforce into the following percentages:
a) 5-8% with rating 5 [Top rankers- Excellent, Exceed expectation.]
b) 12-15% with rating 4 [Next level rank- Good]
c) 70% with rating 3 [Satisfactory performance- Achieved expectation]
d) 10-12% with rating 2 [Needs improvement, have the potential to do better]
e) 5-8% with rating 1 [Poor performance, continuously missing targets, to be put in PIP]
2. Then they divided the process according to their sensitivity to the client into ranks. For example, if there is a process involving the assignment of cheques, even if the process is not voice-based, it was given the highest ranking. This decision was made because a mistake of putting one extra zero in a cheque can create a significant loss to the organization.
3. After the performance appraisal ranking was done by each individual process, they redivided the budget of every process into the ranks allocated to each process. For example, the process assigning cheques would have the highest budget, followed by the next process.
4. Thus, they divided the budget among the individual team members in each process according to their individual rank. For instance, if the budget allocated to a process is 50 lacs, then the top ranker with a rating of 5 will get a hike of nearly 35-40 thousand. Again, the budget for different ranks depended on the number of team members in the process.
I hope I have answered your question. If not, please let me know. I will surely try!
Regards,
Cite Contribution
From India, Mumbai
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Dear,
We did the same thing as you mentioned in your post. We divided those 5 categories, but the problem arises when we have to distribute the financial rewards in accordance with the gross salaries corresponding to their percentage or performance category. Every department has its corporate cap, for example, 10% of gross salaries, 15% of gross salaries, or 20%, apart from a 5% inflationary increment across the board. We still don't have a system to rank the important activity; rather, we have put that system based on gross salaries. If I put all the employees (with different designations and different gross salaries) of any category like top performer, then they won't get an increment matching their gross salaries.
From China
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We did the same thing as you mentioned in your post. We divided those 5 categories, but the problem arises when we have to distribute the financial rewards in accordance with the gross salaries corresponding to their percentage or performance category. Every department has its corporate cap, for example, 10% of gross salaries, 15% of gross salaries, or 20%, apart from a 5% inflationary increment across the board. We still don't have a system to rank the important activity; rather, we have put that system based on gross salaries. If I put all the employees (with different designations and different gross salaries) of any category like top performer, then they won't get an increment matching their gross salaries.
From China
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Hello!
I read about the situation. It's true that a condition like this creates a lot of confusion and repercussions among the employees later on.
What I can suggest:
1. You can add an equity amount to the increase, i.e., staying with the organization for a long time.
2. Please have proper sessions with the workforce before distributing the increment letter. I remember we had a tough time making everybody understand this calculation and further ranking of every process. It had almost run the risk of creating employee dissatisfaction.
3. If possible, employ an external consultant to rank your processes.
4. They will provide an external perspective on the process of ranking, thus keeping away any kind of prejudice.
Please let me know if you have any questions.
Regards,
(Cite Contribution)
From India, Mumbai
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I read about the situation. It's true that a condition like this creates a lot of confusion and repercussions among the employees later on.
What I can suggest:
1. You can add an equity amount to the increase, i.e., staying with the organization for a long time.
2. Please have proper sessions with the workforce before distributing the increment letter. I remember we had a tough time making everybody understand this calculation and further ranking of every process. It had almost run the risk of creating employee dissatisfaction.
3. If possible, employ an external consultant to rank your processes.
4. They will provide an external perspective on the process of ranking, thus keeping away any kind of prejudice.
Please let me know if you have any questions.
Regards,
(Cite Contribution)
From India, Mumbai
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