![]() Performance: Naturally – anybody would expect that performance should be rewarded and should reflect in higher pay rise, higher responsibilities, etc. – Performance of the business unit / project team – Progression into the band’s salary bracket Following components typically influence the salary revision %: Mechanism should be transparent and objective. Salary revisions are important and there should be a mechanism for the revisions. When managers do frequent conversations with their team members, annual cycle would become a non-issue- no surprise element on the rating for the team members. As long as it is natural and manager really “rates” all his/her team members as “excellent”, let it go as a straight line. In this case, the curve for this manager will be a straight line. Certain managers may rate everyone in his or her team as “Excellent”. Key difference from the traditional model is that the organizations let the curve flow naturally. ![]() But, will rely on some mechanism to group people into few buckets. Companies may not like to use “rating” as terminology. When this happens, it will automatically lead to some form of curve. Manager does a formal one-on-one session to discuss 4 quarterly reviews and arrive at a final annual rating. Annual reviewsĬulminate short-term reviews into an annual review session. Managers would be able to look into the performance and assist their team member wherever required. These frequent conversations and reviews help in higher collaboration and trust between managers and their team members. End of assignment reviews, change of manager reviews) They are mandating minimally one session every month between manager and their team member. Organizations are moving towards periodic reviews between managers and their team members. Periodic Reviews (also called as Check-ins, feedback sessions, etc.) So, there exists two bell curves – one for performance, one for salary revisions. There are other factors which decide salary revisions. And, salary revisions are NOT ONLY based on performance. Salary revisions -> performance is one of the inputs while doing salary revisions.If it results in skewed curve, it is perfectly fine. It will still be subjective, but, it is perfectly fine. They don’t go with any forced ranking and allow the bell curve flow freely. Managers are allowed to rate (if the rating system exists) and use guidelines to come up with the rating in each session.They focus on real-time, ongoing, constructive feedback sessions. They prefer to have periodic reviews (which is a good step) or sessions between managers and their team members to discuss about the performance, what is going well and what is to be improved. ![]() Companies are moving away from annual performance appraisal sessions.We have done an analysis, interacted with HR leaders like Mr Mali Mahalingam and come up with the following understanding: We wanted to understand the solution these companies (companies from the articles mentioned above) have put together to abolish performance appraisals and still focus on rewarding performance and do “objective based” salary revision. Most of these articles elaborate the challenges on the annual cycles, bell curve, etc. There are several articles like the above on the net. ![]()
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