Considerations of Salary Increase after The Employee’s Performance Evaluation
Employee’s salary is one of the rights that all employees should get when they are working in a company. Most of the time, employees’ salaries will depend on the negotiations they had at the beginning before they sign the contract, after they finished their interviews, and received an Offering Letter from the company.
Other than receiving weekly, fortnightly, or monthly salaries, they could also ask and request a pay raise from their employers. Usually, before that happens, there will be an employee performance evaluation that will review the effectiveness and productivity of their work during the previous financial year.
A regular (annual) employee performance evaluation is very common to be done by a lot of companies for their employees. Most regulations that are given out by the government don’t explicitly state how much of a payraise an employee should get in a company.
However, the company itself will do reviews and evaluations of each of their employee by using a Key Performance Indicator (KPI) score to determine if they should get a promotion or if they should get their salaries increased. The main goal of this is to keep the employees happy to go along with their work achievements and the growth of the company too.
With the usual annual performance review that takes place at the end of a financial year, the employee performance evaluation can also be done per 6 months or at the end of the year as well. In some cases, companies might have good conditions in their finances where their productivity is quite high and they could also consider giving out bonuses or pay raises for their employees too.
If the company is not in a stable enough condition to give out pay raises, they should hold off on doing so. However, they could still inform their staff that their reviews and evaluations can still take place and will be used for later times.
Employee Performance Evaluation Template | Word – download