Performance reviews and compensation are naturally linked – both are important contributors to employee satisfaction and retention. For many companies, compensation adjustments and performance reviews go hand-in-hand, but decoupling these conversations is actually more productive for employee growth.
There are two main reasons why you should consider discussing compensation and performance independent of one another:
Whether it’s expecting a pay raise or requesting one, salary discussions put employees in a defensive position and this creates anxiety and stress. When employees are feeling tense and anxious, they’re hardly in a frame of mind to receive performance feedback. Removing compensation from the conversation allows the performance discussion to focus on learning opportunities and career development.
Holding performance reviews and compensation reviews at the same time can create an unhealthy competitiveness among employees. Rather than employees focusing on their own professional development, performance reviews become about comparing salary increases among peers. This is not productive for company culture or employee morale.
If you want employees to be more receptive to performance feedback and less anxious about compensation discussions, creating more transparency and publishing career progressions can start you in the right direction.
Whether it’s once per quarter, every six months, or once per year, all employees should know when compensation discussions will occur. It’s important not to let the topic of compensation creep into performance discussions and salary conversations should be scheduled at least a few weeks apart from performance reviews. By keeping the two conversations distinct, employees will be able to focus on feedback and professional development while understanding when they’ll have time to talk to their manager about compensation.
By creating and sharing professional development paths, you can help your employees understand potential role and salary progressions. This sort of framework outlines different career paths, the skills required for each, and the compensation progression. Providing this structure removes any mystery from compensation discussions and can reduce employee anxiety.
When performance reviews are tied to compensation, it can be difficult for both employees and managers to focus on anything except money. Removing compensation from the equation allows everyone to focus on the true purpose for performance reviews – employee development and growth.
Using the Sincron HR platform HR managers can create and customize performance evaluations then implement and track their success. In addition:
To learn more Contact Us Today!
The website na.sincronhr.com uses its own cookies and third-party cookies to provide visitors with a better online browsing experience and services tailored to the needs and interests of everyone.
In this notice, you'll find details about what cookies are, how we use them, the types of cookies that can be placed by visiting our site, and how you can manage, delete or reject them.
What is a cookie? An "Internet Cookie" (also known as "cookie browser" or "HTTP cookie" or simply "cookie") is a small file of letters and numbers that is stored on your computer, mobile terminal or other equipment of a user on which the Internet is accessed. The cookie is installed through a web browser (eg Internet Explorer, Chrome, Mozilla Firefox) and is completely "passive" (it does not contain software, viruses or spyware and can not access the information on the user’s hard drive).
Cookies themselves do not require personal information to be used and, in most cases, do not personally identify Internet users.
On this website, depending on their purpose, we use the following types of cookies:
Functional or preferences cookies - allow a site to retain information about the changes you make on how the website behaves or shows, such as your preferred language or region. These cookies are not essential to the use of the website. However, without them, certain functionalities may become unavailable.
Analytical or site performance cookies - collect information to statistically analyze how the site works. These cookies help us: understand how our site is being used, how effective our marketing campaigns are and how to personalize the site to improve your experience.
Analytical cookies may include advertisements on third-party websites. These cookies allow us to monitor and improve the functioning of our website.
Advertising cookies - these cookies can be set by us or by third parties, being used to show you more relevant advertising messages. For example, they prevent the same ad from reappearing continuously, ensuring the correct display of advertising messages and, in some cases, enabling advertising to be served according to your interests.
For more information, click here