Salary Review Checklist

Table of Contents

    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

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