Separate compensation review from performance review
How do you go about scheduling two different conversations at year-end with each employee to discuss performance and compensation increase? This is a lot of work on the manager’s end and difficult to implement…
Kudos to you for conducting performance conversations and compensation discussions. What some companies do, is provide employees with a salary range, matrixed to show how much of a % increase an employee will receive based on their performance rating.
For example, if you’re using a 5 point performance review rating scale, perhaps those who get a 1, receive no increase, those who get a 3 get a 1% increase and those who get a 5, receive a 3% increase.
By providing the ‘guidelines’ to managers in advance, they can share this information with the employee at the end of the performance review meeting. Then HR can formalize the increases and send each employee a salary increase letter, with the expectation that employees have the option to schedule a follow up with their manager if they have questions. In other words, schedule only one meeting (performance review), but give the employee an option for the 2nd meeting if they need it. Most won’t.
Best! Laura, HR, SPHR, MAEd
Here are articles that may help.
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.