Most companies have an annual compensation review process where the salaries and other payments to employees are compared to internal and external benchmarks and adjustments are proposed, approved and implemented.
Many HR departments of larger companies have access to an online tool for salary reviews, but many smaller companies prefer to use spreadsheets like the one I am sharing with you today.
The basic principles for using this tool:
You need to make sure to retain employees and avoid employee turnover by reviewing his or her salary on a regular basis. Typically once per year.
Employees need feedback regarding job performance expectations and also their own performance delivered against the expectations. The compensation they receive should reflect not only the market value of the work they do for you, but also their own level of delivery against expectations for that role. Performance which exceeded your expectations deserves to be rewarded. You could do it as a discretionary bonus or you could review the person’s annual salary and consider an increase.
Some employees bring increase requests to their bosses on a regular basis while others may just be waiting for their bosses to realize how much effort they put in and how many good results they are achieving. Without a solid salary review process which is run uniformly on an annual basis (at least) you could run the risk of not treating all of your employees in the same fair manner when it comes to salary reviews. It could happen that only those employees requesting regular increases are receiving them while those who do not ask, do not.
Continuous learners have the best chances of being noticed for new opportunities and promotions. It is important to be structured around what you will focus on learning next. Ask for feedback from more senior people around you or from your manager/supervisor. Then create a personal development plan for yourself. As you complete learning goals, set new learning goals and update your personal development plan accordingly.
The best way to have a structured learning approach is to have a Development Plan. Creating your own development plan is the first step towards mapping out your learning needs and priorities. Ask someone with experience to help you with it. It could be your supervisor or manager and it can also be a coach or mentor that you are working with. Such a person should be able to provide you with valuable feedback as you aim to prioritize your planned development actions.
Sometimes you don’t want to run a full employee engagement survey, but you just want to do a quick check to see how things are going. Call it a “mood meter” or a high level check to see if you can catch some underlying issues that may require further investigation.
Of course it is understood that a quick check is not meant for applications where the correlation between questions and outcomes require a statistically defensible position. HR folks and OD folks sometimes just need a quick tool that would help you see if there may be a trend that is worth looking into further at your location. Sometimes the trend you see can be as simple as a low level of responses to your quick check.