Hi! Can anybody who have hands on experience on increment and fitment of salary exercise can comment on the following issue!
In my organization people who complete their probation period i.e. 6 months from joining, are eligible for salary review as it is done every year on 1st April every year. Means, on 31st March if anybody has a conformed service are there for the review.
In case if anybody joins on 2.10.2006 s/he is not eligible since s/he does not have confirmed service on 31.3.2007. S/he has to wait till April2008 but maximum increment will be for 12 months.
But in case anybody joins on 1 Sept 2006 , s/he will get pro-rata increment for 7 months. Considering above I want to listen how you guys deal the matter or what's your policy. Only those who is into compensation division may comments.
From India
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5In my organization people who complete their probation period i.e. 6 months from joining, are eligible for salary review as it is done every year on 1st April every year. Means, on 31st March if anybody has a conformed service are there for the review.
In case if anybody joins on 2.10.2006 s/he is not eligible since s/he does not have confirmed service on 31.3.2007. S/he has to wait till April2008 but maximum increment will be for 12 months.
But in case anybody joins on 1 Sept 2006 , s/he will get pro-rata increment for 7 months. Considering above I want to listen how you guys deal the matter or what's your policy. Only those who is into compensation division may comments.
From India
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Dear Pardip,
A better way to do the first increments for joiners is on anniversray of joining. The rationale is that for a new joiner a year of srvice gives the organisation enough time to assess his performance. Further it is fair as others in the organisation are appraised for a period of 12 months.
Now to bring the new joiners in the regular appraisal / increment cycle, his/her next (following year) increment is done along with the rest ( April 1 in you case) and the increment is prorated.
Hope this is of help to you.
Cheers
Faizal Haque
From India, Vadodara
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A better way to do the first increments for joiners is on anniversray of joining. The rationale is that for a new joiner a year of srvice gives the organisation enough time to assess his performance. Further it is fair as others in the organisation are appraised for a period of 12 months.
Now to bring the new joiners in the regular appraisal / increment cycle, his/her next (following year) increment is done along with the rest ( April 1 in you case) and the increment is prorated.
Hope this is of help to you.
Cheers
Faizal Haque
From India, Vadodara
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Dear Faizal,
Thanks for reply..u are absolutely right...this is the one option I have already decided...since earlier organization used to follow the practice...
However I was also thinking that put the new joinees increment in slab system. For example:
a) those who have joined April -June will get 100% of increment
b) Those who have joined july - Sept will get 75 5 of increment
c) Those who have joined oct-Dec will get 50% of increment
and finally d) those who have joined Jan- mar will not entitled for the increment for the year.
Though the option you have given is perfect one but the problem is that one person would be continuously involved in the correction which may be avoided by exercising the matter one in a year.
Thanks again for promt reply...
Regards,
From India
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Thanks for reply..u are absolutely right...this is the one option I have already decided...since earlier organization used to follow the practice...
However I was also thinking that put the new joinees increment in slab system. For example:
a) those who have joined April -June will get 100% of increment
b) Those who have joined july - Sept will get 75 5 of increment
c) Those who have joined oct-Dec will get 50% of increment
and finally d) those who have joined Jan- mar will not entitled for the increment for the year.
Though the option you have given is perfect one but the problem is that one person would be continuously involved in the correction which may be avoided by exercising the matter one in a year.
Thanks again for promt reply...
Regards,
From India
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hi
I agree to Faizal's sugg. for any probationer it is also better to do the salary review only after completion of a year. A years time is a fair assessment time period both for you as well as for the new employee to
decide on his committment levels.
regards
From India, Kochi
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I agree to Faizal's sugg. for any probationer it is also better to do the salary review only after completion of a year. A years time is a fair assessment time period both for you as well as for the new employee to
decide on his committment levels.
regards
From India, Kochi
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First thing is yearly increment is a policy matter which is approved by all HODs and CMD. It differs from organisation to organisation depending upon its culture. However, usually a person is entitled for increment if he/she serve at least 6 month continuas servises. That is in that case he has to join on or before 1st September. Sometimes few company give increment on confirmation also after 6 months. In a word there is no static rule, only depend on mutually understanding or corporate policy.
Suvajit
From India, Delhi
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Suvajit
From India, Delhi
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Dear Pradeep,
Greetings! I have spent over 14 years in HRD and have a suggestion. In today's diverse organizations, I have experienced motivational measures such as Reliance giving "Default Ratings" to all employees. Increments are on an annual basis there. Most private organizations operate on an annual mode.
The best suggestion from my experience to save money for mid-level employers is to shorten the review period for administrative set of employees by 3 months (IT companies are also following this trend) and allow them pro-rated increments.
Illustration: Let's consider a simple calculation for Mr. X who joined on 25/07/'18:
- Date of Joining
- Number of days worked in the financial year
- Base salary for a Class 4 category employee
- Incremented amount decided in lump sum by small/medium-sized entrepreneurs
- Pro-rated increment amount based on the number of days Mr. X was with the company in the financial year
Actual pro-rated effect = 10%
From India, Mumbai
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Greetings! I have spent over 14 years in HRD and have a suggestion. In today's diverse organizations, I have experienced motivational measures such as Reliance giving "Default Ratings" to all employees. Increments are on an annual basis there. Most private organizations operate on an annual mode.
The best suggestion from my experience to save money for mid-level employers is to shorten the review period for administrative set of employees by 3 months (IT companies are also following this trend) and allow them pro-rated increments.
Illustration: Let's consider a simple calculation for Mr. X who joined on 25/07/'18:
- Date of Joining
- Number of days worked in the financial year
- Base salary for a Class 4 category employee
- Incremented amount decided in lump sum by small/medium-sized entrepreneurs
- Pro-rated increment amount based on the number of days Mr. X was with the company in the financial year
Actual pro-rated effect = 10%
From India, Mumbai
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