The salary review process is an important aspect of human resources management. Let’s explore how to implement an ideal salary review and improve your company. Show
It can help you retain quality employees, increase engagement and improve productivity. But it has to be done right. As an employer, you might be wondering what the difference is between salary and performance reviews. In this article, we will break down what is involved in each process, and why salary reviews are so important. We will also share some effective strategies to help you get the most from your reviews for the good of your staff and your business as a whole.
✅Download Factorial’s Free Performance Management TemplateWhat Is a Salary Review?A performance review, also known as a performance appraisal, is a meeting held with an employee to discuss their performance and future development within the company. Performance reviews are used to determine whether goals have been met and to discuss the future potential growth of an employee. A salary review goes a little deeper and is used to determine whether the pay an employee receives is an accurate reflection of how they perform. In other words, a performance review focuses on an employee’s achievements and how they execute their tasks and a salary review on whether this performance correlates with what they earn. A salary review takes into account an employee’s position and the value of the said position in the external job market. Are they earning the average salary for their industry and location? Is the salary competitive? It also factors in any agreed compensation or bonus schemes. A good salary review should also cover the following:
The Six Month Salary ReviewMost companies choose to hold an annual salary review for employees, but many also conduct regular six-month reviews. A six-month review offers a valuable preemptive opportunity to discuss an employee’s performance and salary expectations. The main purpose of a six-month salary review is to clarify job requirements, monitor progress towards goals, and identify any potential areas for improvement. Is the employee performing as expected? Does their salary reflect their level of productivity and contribution to overall business? In other words, it is an opportunity for employees to reflect on their performance and make any necessary adjustments so that they are in line to achieve the goals of their annual performance review. It encourages improved future performance and increases overall productivity. Above all, the six-month review is also an opportunity to evaluate the performance of new employees. The run-up to this first review is usually referred to as a probationary period. This is a time for both employers and employees to work out if they are a good fit. When you hire a new employee it is important to be clear about what this first review will entail. But ask yourself a question. Will it be a salary review with a potential pay increase upon satisfactory completion of targets? Or will it be a less formal meeting to evaluate their performance so far at the company? Make sure expectations are clearly communicated during the onboarding process to avoid disappointment. Why Should HR Leaders Give Importance to Salary Reviews?Overall, there are many benefits to holding regular salary reviews at your company:
How Can HR Leaders Implement an Effective Salary Review?The following tips and strategies can help you implement an effective salary review process in your company:
How Can Salary Reviews Improve Company Culture?The final benefit of implementing a robust salary review strategy in your company is the positive impact it has on your corporate culture. Also, by showing your employees that you value recognition and fair compensation you will increase the sense of job satisfaction and loyalty in your company. This creates increased motivation and performance and can help you build a strong corporate culture that nurtures the development of your employees. This, in turn, will help you retain talent and stand out as a fair, competitive, and relevant employer in an ever-changing job market. After all, as a company, you are only as good as your employees. Check out Factorial’s Performance Management Feature- Sign Up For Free!Written by Cat Symonds. When giving reasons for saying no use the following techniques except?When giving reasons for saying no, use the following techniques except. cite company policy to cushion the bad news. avoid apologizing. highlight how your negative decision benefits your reader.
How should a message begin when you are using the direct approach?A direct-approach message makes your purpose clear from the start by stating the main point in the first sentence before moving on to details. At first glance, readers can tell if you are asking for or supplying information, requesting or granting credit, or making or settling a claim.
Which of the following is an example of a negative phrasing?Here's one example: Negative phrasing: We are not used to such constant supervision. Positive phrasing: We are used to working more autonomously.
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