There is one thing that you can guarantee with an employee and that is that they are passionate about getting paid! You need to ensure you are being fair and reasonable, and also that what you are offering them is actually something that is in line with their expectations and will motivate them.
You need to make your team feel as though they are valued so you as the employer can get more out of what you are spending.
So, how do I do that?
You need to think about your HR strategy and company philosophy on how and why you pay people, then have a system in place which is in alignment with this. You must understand what the financial implications are of what you offer and if these are on top of their total remuneration package or included in it.
You should by now have your accounts back for the last financial year and will see how each department and individual has been able to contribute to the businesses overall success.
Metrics should be in place within each department of your business and this is what your team should be measured against-all employees need a clear line in the sand to understand what your expectations are as an employer. If you don’t have these then contact us and we can help set these up.
Typically, HR and the GM (and Department Managers depending on the size of the business) would review team and individual salary levels. Many businesses only look at performance but when we are working with our clients there are a number of areas we discuss that tie in to the annual performance review. These are attendance, attitude, presentation, any major achievements, promotions, etc. You don’t only want a high performing individual- they must tick all of the boxes and fit within your company culture.
This is where the HR team from Consult NZ come in (yes it’s still Tanya and Mike from Recruit NZ except we are under a new brand). We tailor annual performance review documentation to suit the key metrics within your business. These are issued to each of the members of your business (they can be electronic or paper) and they complete them rating themselves on a scale across a variety of areas from presentation, following systems to actual performance. These are the issued to the department manager to review and complete. We assist in running these sessions with the entire team and providing feedback on individuals.
When reviewing salaries some of the factors we consider are (other than the above):
- Market rates
- Supply and demand, skill shortages
- The current total fixed remuneration for all employees
- CPI index
- Cost of living
If we are not already running these within your business and you would like to get a finalised process in place to tie in with your HR strategy, then please contact us and we would be happy to help!
Next step: a FREE 30-minute consultation
If you’d like to find out more about how we can help you formalise an annual pay and performance review process, contact us to request a FREE 30-minute GTM or skype. We’ll discuss your unique situation with the decision makers in your business and recommend a solution that would work for you.
Call 09 280 3977 or email firstname.lastname@example.org – we’re looking forward to hearing from you.