As the end of the financial year approaches many managers are scrolling through spreadsheets, looking at budgets and analysing pools of funds to spend on remuneration reviews.
For some employees, a salary increase is a given as it may be part of their EBA, for others it is based on reaching certain performance targets and for the rest they may not be receiving an increase at all.
I think Jerry Maguire said it the best………… SHOW ME THE MONEY!!!!!
Here are HR Gurus top tips for conducting remuneration reviews:
- Understand the process. Do you have annual or bi annual reviews? Do you have regular one on one’s with your employees so they know how they are tracking against their performance targets? The key is keep communication regular so there are no surprises at review time.
- It’s not just about money. All employees should have regular reviews, however this does not necessarily equal a salary increase. A remuneration increase will be dependent on a few factors. Did the employee meet their set KPI’s, did they exemplify company values? where do they currently sit on the salary band for their role? It’s important they don’t have the assumption they will be getting a hip pocket injection!
- Make sure you write things down. Try and keep the process somewhat formal. Document the discussion and put in the employees file for future reviews and discussions. Call HR Gurus on 1300 959 560 if you need a template.
- Be open, honest and have the courage to have a difficult conversation. So many times, I have seen employees who are underperforming waltz into a remuneration review expecting a 10% pay rise. Don’t be afraid to say no and explain why they will not be getting this. Take this as an opportunity to set up a performance development plan of what the employee needs to achieve if you are to consider such a request.
- Do what you say. If you tell your employees you will revisit rem reviews in 6 months, DO IT! Don’t change review dates and times, this leaves the employee feeling disengaged and undervalued.
If you need help with remuneration reviews, salary banding or performance review templates give HR Gurus a call today.
Written by resident HR Guru Natalie Bol.