To keep salary reviews from becoming an ugly affair. It’s important to start talking about money and value to the employees.
As a Business, it’s important to set proper structures and policies around Salary reviews.
Salary reviews can be structured around:

  • Job Grades – Title, Organisational structure, Years of Experience, length of Service
  • Company size
  • Company budget
  • Industry/Market  standards/ Market Information
  • Cost of living adjustment
  • Competitive analysis
  • Employee record
  • Known past performance
  • Recent performance.Example: A Company can set its annual performance targets and sets a target at a point where the company will offer the salary increase to its employees. ( Budget for the salary increase), if the company does not perform well, then the salary increase can be postponed to the next year.
    Predetermined job grades in the company will also determine  each employees salary increase, according to their experience, role, and length of service.

Market/Industry and Competitive Salary rates
Organisations should conduct salary surveys to ensure their salary are according to the current, market trends and also in line with government and industry regulations.


Performance reviews are also an important factor in determining salary reviews
For instance, managers could be told that they can award pay increases of 0-4 percent – 0 percent for poor performers and 4 percent for a good performer. On different rating scales: Employees who score 80% and above on their reviews can get a 4% salary increase and those who score below 50% will get 0% salary increase
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