The end of the financial year triggers remuneration reviews. Cue many managers scrolling through spreadsheets and peering at budgets. All to find spare funds for remuneration increases.
For some employees, a salary increase is a given where it is part of their EBA. Others have to achieve certain performance targets to get a raise. And the rest may not be receiving an increase at all.
I think Jerry Maguire said it best………… SHOW ME THE MONEY!!!!!
Five tips for conducting remuneration reviews
Here are HR Gurus’ top tips for conducting remuneration reviews:
Understand the process
The key is to keep communication regular so there are no surprises at review time.
- Do you have annual or bi-annual reviews?
- Do you have regular one-on-ones with your employees? Do they know how they are tracking against their performance targets?
It’s not just about money
All employees should have regular reviews. However. this does not necessarily equal a salary increase. It’s important they don’t assume they will be getting a hip pocket injection!
A remuneration increase depends 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?
Make sure you write things down
Try and keep the process somewhat formal.
Document the discussion and file it for future reviews and discussions. Make sure to file it in the employee’s records.
Call HR Gurus on 1300 959 560 if you need a template.
Be open, honest and have the courage to have a difficult conversation
An underperforming employee may waltz into a remuneration review, expecting a 10% pay rise. I’ve seen it many times. Don’t be afraid to say no and explain why they will not be getting this.
Use the review to set up a performance development plan for the employee. A plan that sets out what the employee needs to do to earn a future pay rise.
Do what you say
Make sure to follow through on your promises to employees regarding remuneration reviews. Don’t change the dates or times of these reviews without good reason. 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 on 1300 959 560 where our qualified and experienced team are here to help!
Written by resident HR Guru Emily Jaksch.