Performance Review
With the planning phase complete and managers/line managers trained accordingly, it’s time to start carrying out the pay review process and actively gathering staff reviews so to make remuneration decisions in time for the pay review deadline.
Issue self-evaluation forms
Looking at what your employees believe of their performance and salary expectations can be extremely useful for a pay review, before requesting manager reviews, issue a series of self-evaluation forms to your employees with a set deadline. At this time, you can ensure that all employees have been made aware of the upcoming pay review and have been given sufficient time to raise any grievances.
Target transparency
Transparency throughout the pay review process is key, and all employees should be made aware that a pay review is taking place. Any responsibilities they have that haven’t officially been recorded should be advised, either through direct communication or the employee self-evaluation forms. Ensure employees are advised, preferably in writing, exactly what of their role is to be evaluated for the pay review, for instance, their responsibilities and the quality to which they perform their role. In addition, let employees know what will not affect their pay review, for example, working hours, sickness and care responsibilities, where applicable.
Establishing an employee rating system
To formally give employee performance reviews, a system must in place for managers or line-managers to efficiently record necessary information. For example, detail exactly how or why an employee should be considered for a pay review by offering a category score across several areas, i.e. customer service, job effort, results, response; where employees must reach a target of at least “good” across every area to be considered for a review, whereas an individual who receives “outstanding” in each category is automatically eligible for a pay review.
Alternatively, performance reviews could consider if employees provide a higher level of performance than their responsibilities denote, going above and beyond for other members of their team and carrying out roles that while not expected, bring more value to the workforce. If managers need necessary examples, supply a who and why break down for the pay review process, providing areas for managers to assess including;
- What does the individual job description require of the employee?
- Are they working within the expectations set by the pay review process review?
- Does the way they conduct themselves align with the company values?
- Have they overcome any difficulties or issues in their role?
- Are they meeting personal or team targets and goals?
Examples of rewarded behaviour include;
- Going above and beyond their job role expectations
- Assisting other team members during high levels of activity or during peak periods
- Improving existing services or procedures in the workplace
- Consistently providing excellent levels of customer service
- Continuously receiving positive feedback from staff, managers or customers
- Tracking and exceeding targets and goals, either personal, team or company-wide
- Teaching and guiding other team members who are struggling
- Applying themselves and seeking out extra training or guidance so to provide a higher level of experience in their role or take on increased responsibility
Double check employee contracts
Although contracts largely tend to contain the same information and clauses, it’s important to double check contracts of some employees that may have negotiated on their confirmation to join the company. Check that there are no clauses that could potentially affect the pay review process, for example, if there is an employee who has an agreement for a pay freeze or pre-agreed percentage pay increase.
Ensuring pay reviews are fair and non-discriminatory
When employee performance reviews have been submitted, the information must be vetted to ensure the process carried out is fair without risk of discrimination. This includes ensuring employees have been well informed during the pay review process and there is no risk of an employee feeling discouraged or discriminated against. By keeping the process of performance reviews transparent with open communication between managers and their teams encouraged, no individual should feel unfairly treated and they will have clear expectations on how they can further improve themselves for the next pay review.
Accounting for exclusions
Exceptions or exclusions are often made for new starters to a team to ensure that long-standing employees don’t feel unfairly treated during the pay review process; check that any pay awards that are intended to be rewarded follow the exclusionary procedure. Additionally, exclusions may be in place for employees who have entered the disciplinary process during the pay review procedure.
Final review check
Before signing off on employee feedback and pay reviews, companies should perform a final review of all the data gathered, managerial notes and the reviews to ensure feedback given is fair and non-discriminatory and that all employee factors have been taken into consideration. Make sure to check suggested pay reviews fall within the competitive market to contribute to the retention of current high-performing staff.
