Things to tick off for a fair and simple salary review process

A salary review is often taken up when the duties and responsibilities of an employee change or expand significantly, determine fair pay, retain high-performing employees, and engage low-performing workers for increasing their productivity.

While a salary review process is complex enough to leave the heads of many companies scratching their heads, we have formulated a list of actionable steps to check before going ahead with the annual or semi-annual activity.

  • Review the company’s budget
  • Prepare a list of employees who deserve a hike
  • Set out pointers and objectives to be discussed during the meeting
  • Ascertain the amount of salary that can be possibly increased for each employee
  • Ask your employee to
    • Self-evaluate
    • Review their skill-progression
    • Evaluate the value they think they have brought to the firm
    • Share their expectations
  • Determine
    • Progress of the employee during the past year
    • Their contribution to the company
    • Their accomplishments
    • Analyze the average salary benchmarks in the market
    • Determine the fair pay that exists for the particular role
    • Explain the process to the employee
  • Review the employee based on their:
    • Alignment with the company’s values and goals
    • Attitude
    • Performance
    • Value to the company
    • Risk management
  • Review current salary
  • Determine desired salary adjustments
  • Jot down the reasons
  • In the end, inform your employees about:
    • Change in their salary structure
    • Effective date