Comments on: The salary-increase plan that gets results http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/ Your daily dose of HR Wed, 17 Mar 2010 21:49:46 -0400 http://wordpress.org/?v=abc hourly 1 By: Sean Smith http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-38791 Sean Smith Wed, 30 Dec 2009 13:54:17 +0000 http://www.hrmorning.com/?p=345#comment-38791 Part of the problem is unions have guaranteed raises built into their contracts regardless of their performance. In hard times, the need to fulfill those contractual obligations leaves nothing for those of us who work hard, perform well, and then get no raise in pay, leaving us quite disgruntled. How can they expect top performance when they have no reward for the performance? Part of the problem is unions have guaranteed raises built into their contracts regardless of their performance. In hard times, the need to fulfill those contractual obligations leaves nothing for those of us who work hard, perform well, and then get no raise in pay, leaving us quite disgruntled.

How can they expect top performance when they have no reward for the performance?

]]> By: Y clark http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-3732 Y clark Mon, 08 Dec 2008 16:45:58 +0000 http://www.hrmorning.com/?p=345#comment-3732 We are a small 30 employee technology products company. We have separated Performance Review from compensation adjustment. The reviews are done by the reporting manager and turned in to HR. HR handles the annual adjustment based upon a per-set % on various performance rating. Managers are not told what is the raise table or the exact raise/pay for specific employee. It is because the employee may have higher pay or higher raise than the manager and it eliminates the manager to "boost" up the rating so the employee will get more money. The annual raise for the past 5 years is average at 5.7% on the payroll pool but individual may get anywhere from 0% to 12.5%. We typically use market rate for reference instead of the living index. The HR may also recommend stock options when there are high performer whose salary is already at max or in the 95% of market. Executives are typically do not get annual raise. The annual cash bonus is totally not tied to salary base. Neither sales(who are already compensated with sales incentives) or executives are not entitled to the bonus pool. We are a small 30 employee technology products company. We have separated Performance Review from compensation adjustment. The reviews are done by the reporting manager and turned in to HR. HR handles the annual adjustment based upon a per-set % on various performance rating. Managers are not told what is the raise table or the exact raise/pay for specific employee. It is because the employee may have higher pay or higher raise than the manager and it eliminates the manager to “boost” up the rating so the employee will get more money. The annual raise for the past 5 years is average at 5.7% on the payroll pool but individual may get anywhere from 0% to 12.5%.

We typically use market rate for reference instead of the living index. The HR may also recommend stock options when there are high performer whose salary is already at max or in the 95% of market. Executives are typically do not get annual raise. The annual cash bonus is totally not tied to salary base. Neither sales(who are already compensated with sales incentives) or executives are not entitled to the bonus pool.

]]> By: KD http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2813 KD Fri, 24 Oct 2008 02:11:07 +0000 http://www.hrmorning.com/?p=345#comment-2813 If you don't connect performance with monetary rewards, then what is the motivation to perform at the highest level possible? If you don’t connect performance with monetary rewards, then what is the motivation to perform at the highest level possible?

]]> By: Amy Pereyda http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2741 Amy Pereyda Tue, 21 Oct 2008 14:23:36 +0000 http://www.hrmorning.com/?p=345#comment-2741 I believe it is best not to combine performance reviews and monetary rewards. I think it is best to conduct performance reviews at a minimum of every six months. You should also coach them between the performance reviews so that they are not suprised when it is time for their performance review. If monetary rewards are given at a paticular time every year I would just make sure not to conduct performance reviews at the same time, this way a raise will not be expected. I believe it is best not to combine performance reviews and monetary rewards. I think it is best to conduct performance reviews at a minimum of every six months. You should also coach them between the performance reviews so that they are not suprised when it is time for their performance review. If monetary rewards are given at a paticular time every year I would just make sure not to conduct performance reviews at the same time, this way a raise will not be expected.

]]> By: Sue D http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2722 Sue D Mon, 20 Oct 2008 20:41:40 +0000 http://www.hrmorning.com/?p=345#comment-2722 The best way to give performance reviews and not attach any monetary reward to them, is to not call them performance reviews, and do them more frequently. Put in a coaching program, and prepare 90-day plans. These are easier for everyone to work on and discuss more formally. Also, set the expectation up front, that annual increases are not customary, and explain what your process is. If employees know this up front, they will not be caught off guard when review time comes along! Aside from that, why wouldn't you want to give annual increases to employees who have done an outstanding job? The best way to give performance reviews and not attach any monetary reward to them, is to not call them performance reviews, and do them more frequently. Put in a coaching program, and prepare 90-day plans. These are easier for everyone to work on and discuss more formally.

Also, set the expectation up front, that annual increases are not customary, and explain what your process is. If employees know this up front, they will not be caught off guard when review time comes along!

Aside from that, why wouldn’t you want to give annual increases to employees who have done an outstanding job?

]]> By: Sue http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2719 Sue Mon, 20 Oct 2008 20:27:56 +0000 http://www.hrmorning.com/?p=345#comment-2719 There is nothing in stone that requires pay increases to anyone anywhere. Pay increases are often used to communicate value to employees. Some managers give everyone an increase, some smaller percentages than others. Some give only top performers increases hoping to motivate the under achievers. I have found, that for me personally, a standard increase for cost of living - 2% to 3% works - then award performance via quarterly or annual bonuses. For others it is the salary that matters. I don't think there is one proven way to make all employees happy. But companies can send the "way to go" message via bonuses and those that don't get bonuses will ldo a better job or look elsewhere for employment. There is nothing in stone that requires pay increases to anyone anywhere. Pay increases are often used to communicate value to employees. Some managers give everyone an increase, some smaller percentages than others. Some give only top performers increases hoping to motivate the under achievers. I have found, that for me personally, a standard increase for cost of living – 2% to 3% works – then award performance via quarterly or annual bonuses. For others it is the salary that matters. I don’t think there is one proven way to make all employees happy. But companies can send the “way to go” message via bonuses and those that don’t get bonuses will ldo a better job or look elsewhere for employment.

]]> By: Larry http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2712 Larry Mon, 20 Oct 2008 19:34:38 +0000 http://www.hrmorning.com/?p=345#comment-2712 Most managers abdicate the review process so that's why they have problems Most managers abdicate the review process so that’s why they have problems

]]> By: Viki McKinney http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2711 Viki McKinney Mon, 20 Oct 2008 19:25:45 +0000 http://www.hrmorning.com/?p=345#comment-2711 What happens when employees get a satisfactory or above on their perfomance plan, but do not get a raise for 5 months or more and they don't retro pay? What happens when employees get a satisfactory or above on their perfomance plan, but do not get a raise for 5 months or more and they don’t retro pay?

]]> By: Mary Ann MacNeil http://www.hrmorning.com/the-salary-increase-plan-that-gets-the-best-results/comment-page-1/#comment-2704 Mary Ann MacNeil Mon, 20 Oct 2008 18:27:47 +0000 http://www.hrmorning.com/?p=345#comment-2704 What's the best way to give a performance review that will not have any monetary increase? What’s the best way to give a performance review that will not have any monetary increase?

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