Dear All,
I work as a HR manager for a Biotech company. Ours is a small organization with 50+ employees to its credit and is continuously growing. Our company was incorporated in 2007.
The company had a practice of giving increments to all employees, during the mid of the year as well as on completing 1 year of service. This was done, as the organization was in the starting stage and wanted to retain the existing employees.
I'm a new joinee and I would like to standardize the procedure of increments. I had raise a proposal that increments will be given only during the annual performance appraisal and not after completing the 1 year of service. But I need some clarifications regarding the same.
1) Do every confirmed employee (after probation) are eligible for the annual performance appraisal process or not?
2) Or Employee after 1 year of service will only be considered for the appraisal system?
3) If that's the case, then what if an employee joins in the mid of the month (as in our company, Appraisals are calculated on financial year from March - April), whether he/she is appraised or not?
4) What if an employee is on probation during the appraisal period?
Appreciating your valuable replies on the above mentioned topic.
Thanks and Regards,
Durga.
From India, Pune
I work as a HR manager for a Biotech company. Ours is a small organization with 50+ employees to its credit and is continuously growing. Our company was incorporated in 2007.
The company had a practice of giving increments to all employees, during the mid of the year as well as on completing 1 year of service. This was done, as the organization was in the starting stage and wanted to retain the existing employees.
I'm a new joinee and I would like to standardize the procedure of increments. I had raise a proposal that increments will be given only during the annual performance appraisal and not after completing the 1 year of service. But I need some clarifications regarding the same.
1) Do every confirmed employee (after probation) are eligible for the annual performance appraisal process or not?
2) Or Employee after 1 year of service will only be considered for the appraisal system?
3) If that's the case, then what if an employee joins in the mid of the month (as in our company, Appraisals are calculated on financial year from March - April), whether he/she is appraised or not?
4) What if an employee is on probation during the appraisal period?
Appreciating your valuable replies on the above mentioned topic.
Thanks and Regards,
Durga.
From India, Pune
Durga,
1. All employees are eligible for apprisal system. The employees on contract may be also included.
2&3.You can have cut-off period. i.e. apprisal may be considered for ppl who join before Oct and the increment may be paid in pro-rata.
4. Employees under probation are not considered. But it depends on the company policy and can do so if they wish to encourage the probationers.
Pon
From India, Lucknow
6041. All employees are eligible for apprisal system. The employees on contract may be also included.
2&3.You can have cut-off period. i.e. apprisal may be considered for ppl who join before Oct and the increment may be paid in pro-rata.
4. Employees under probation are not considered. But it depends on the company policy and can do so if they wish to encourage the probationers.
Pon
From India, Lucknow
Dear Durga
Eligibility for Appraisal Process is set by the company
In normal instances companies opt the eligibility as 1 year of minimum service in the company as on the date of appraisal. In your case when appraisal process of from April to March , one year of service completion on or before 1st April can be applicable.
If the above 1 year limit is not set , every confirmed employee can be taken into the annual appraisal process
If he joins in mid month or year (doubtful from your question), whatever it may be, the above explanations will answer your query
By probation, we mean testing the behavior and capabilities of the employees in the new environment. The process by itself is a appraisal and most of the companies exclude this category of employees from annual appraisal process.
Hope the info is clear
From India, Mumbai
Eligibility for Appraisal Process is set by the company
In normal instances companies opt the eligibility as 1 year of minimum service in the company as on the date of appraisal. In your case when appraisal process of from April to March , one year of service completion on or before 1st April can be applicable.
If the above 1 year limit is not set , every confirmed employee can be taken into the annual appraisal process
If he joins in mid month or year (doubtful from your question), whatever it may be, the above explanations will answer your query
By probation, we mean testing the behavior and capabilities of the employees in the new environment. The process by itself is a appraisal and most of the companies exclude this category of employees from annual appraisal process.
Hope the info is clear
From India, Mumbai
Dear Mr. Sriram/Pon,
Appreciate your reply.
If an employee joins in the month of May 2011, his one year of completion will be on May 2012 only. So, what i have understood from your reply is that, as he won't be completing his 1 year on or before 1st April 2012, he is not eligible for the annual performance appraisal process, "if" the company has set the limit of 1 year.
And if the company hasn't set any specific time limit, then all those employees who got confirmed before March, can be taken into appraisal process. But will those employees be given the same percentage of hike as of the with the employees who had already completed 1 year of service.
Kindly revert.
Regards,
Durga
From India, Pune
Appreciate your reply.
If an employee joins in the month of May 2011, his one year of completion will be on May 2012 only. So, what i have understood from your reply is that, as he won't be completing his 1 year on or before 1st April 2012, he is not eligible for the annual performance appraisal process, "if" the company has set the limit of 1 year.
And if the company hasn't set any specific time limit, then all those employees who got confirmed before March, can be taken into appraisal process. But will those employees be given the same percentage of hike as of the with the employees who had already completed 1 year of service.
Kindly revert.
Regards,
Durga
From India, Pune
Durga,
Percentage of hike is based on the appraisal outcome, which in turn is based on various parameters set by the company in the process.
An employee with one year of service will have higher deliverable / results compared to the one with 6 months of service
If your annual appraisal system is crafted, taking into account all these variables , the employee will get the desired hike matching his level of performance
From India, Mumbai
Percentage of hike is based on the appraisal outcome, which in turn is based on various parameters set by the company in the process.
An employee with one year of service will have higher deliverable / results compared to the one with 6 months of service
If your annual appraisal system is crafted, taking into account all these variables , the employee will get the desired hike matching his level of performance
From India, Mumbai
Dear Durga,
After understanding your company profile, I suggest you plan for 2 increment cycles in a year.
For example: all joinings between Jan to June will be eligible for increment in April next year and all joinings between July to Dec will be eligible for increments in october next year.
By doing this you will bring all in one pipeline and subsequent increment cycles will fall in place.
Regards
Murali
From India, Chennai
After understanding your company profile, I suggest you plan for 2 increment cycles in a year.
For example: all joinings between Jan to June will be eligible for increment in April next year and all joinings between July to Dec will be eligible for increments in october next year.
By doing this you will bring all in one pipeline and subsequent increment cycles will fall in place.
Regards
Murali
From India, Chennai
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