Salary Review Checklist

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