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