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Increment Policy
Human Resources » Performance Management


Chrm Message From: eChoice Training Total Posts: 28 Join Date: 14/04/2007
Rank: Executive Post Date: 04/03/2008 06:52:36 Points: 140 Location: United States

Dear HR Freinds,

We are in the process of working out a policy w.r.t to Increments to our Managements Staff ( i.e: Top /Middle /Jr Mgt cadre personnel)

We are basically a Manufacturing company for healthcare products.

I would appreciate if you could provide me some advise and insights in the areas of "Increments to Mgt Staff" with some basic idea as how one should go about the same. (eg : % , Levels & Criteria etc) from a Process Industry or otherwise.

Thanx and Awaiting a positive bulk response.

Chrm Message From: senthil.m Total Posts: 43 Join Date: 14/04/2007  
Rank: Executive Post Date: 04/03/2008 06:54:30 Points: 215 Location: United States

The increment is the function of :

a. Business / Company Performance
b. Department / Function Performance
c. Individual Performance
d. Internal / External parity (benchmarking)

Internal parity refers to the existing employees within the organization. External parity refers to - what is industry practice? What is the inflation rate? etc.

Before one can recommend any increment, one needs to understand how you used to give increments in the past. For example, whether you used to give the increment in absolute amount terms or as a percentage of of basic/fixed cost/CTC.

Do you have any Variable Pay Plan which is linked to individual / business performance or there is no variable component in the salary.

When you refer to increments, do you mean the increment in cash component / monthly take home or increase in the benefits provided by the employer.

On understanding all these aspects, one can recommend what percentage increment is advisable.

Regards,

senthil

 
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