Itâ€™s not a typo; here is what Iâ€™m writing this entry about â€“Appraisals. In every industry, annual / bi-annual appraisals are a very important event in the HR calendar. The employees eagerly await fruits of their labor to see how the companies value their efforts, in terms of salary increments and promotions. This year is no different! Many companies have just completed the appraisals and others are aiming at June for their yearly or bi-annual appraisals respectively.Â I would like to start a discussion about this very important aspect, which leads to attrition rates / recruitment drives and let everyone share their opinions. The aim is to identify best practices, which have been tested in our industry and have lead to keep a healthy balance.
In my humble opinion the appraisals do play a vital role in shaping the IT industry. End result of appraisals can be one of the following:
- Employees think the company has not done justice with them on not giving them a respectable raise, therefore they should move
- Employees are satisfied with the appraisals and feel motivated to work & stay
- Either satisfied or not, employees use the upcoming appraisal range to jump for a sizeable raise with next prospect employer
Iâ€™ve come across some interesting individual comments in my recent interviews with candidates:
- â€œThe appraisal should justify the rate of inflation which we are effected with in our daily lives, experts rate it around 20%â€
- â€œAppraisal is our right, what companies should also start doing is giving bonuses based on revenue from projects which we have successfully completedâ€
- â€œI really worked hard to maintain clients and made sure that I give my total dedicated output on the project; and at the end I get just 10% raise â€“ its not fair!â€
- â€œABC company (top 5 player) is giving X% increments this year to SSE with Y years of experience, my company is only giving 50% of it. Thatâ€™s why I feel I should move.â€
Now from the other side of the fence â€“ the Employer!
- â€œWhat should be a decent rate of appraisal, for 25-person team operation â€“ 10%, 15%, —?â€â€œShould we have increment slabs, like for 50K plus 10% etc?
- â€œShould promotion with its respective package be enough or do we need to give some bonus?â€
- â€œThe candidate qualifies promotion but we already have resources on the same level. I think we will let him have the same title but make the salary in range with the others.â€
- â€œIs Bi-annual increment system more applicable for the industry keeping in view the attrition rates?â€
I hope this would lead to a healthy discussion. The above comments I have shared are from my own personal experience with both clients and candidates during my recruitment practice at Radical Hire