A salary review is an assessment form which involves the evaluation of the employees’ overall performance. This review for salary is often conducted annually as the performance review of individual employee are also examined. The reason for this is that the performance is used as a basis or the main factor in order for the reason for a salary increase to be justified. With the increase in the salary, employees are kept motivated to strive even harder and improve their performances.
Yet, the increase of salary does not takes place right there and then without undergoing a process. The process for the review is explained further below. You may also refer to the provided forms in this article for more understanding of how salary reviews are conducted. As mentioned above, an employee’s performance evaluation is first measured. The reason for this is in order for the management to determine if the employee deserves an increase by basing on the individual performance.
The increase serves as a reward for each of them for contributing much effort for work in the company. But it does not necessarily mean that all employees receive this increase. If it happens that the results from the review of performance are insufficient, there is no salary increase. It is sometimes hard for the business management to tell their employees about the results. Thus, the management should present the performance review results as a basis or an evidence. This is one way to make sure that they do not discourage their employees. That is why, it is important that the business management keeps all employees’ documents in their personnel file.
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Here are further reasons why employees get a salary increase:
- When an employee is promoted to a higher position
- When an employee is transferred to another department, depending on what position
- When the employee is regularized and no longer in the probationary period
- When there are some mistakes in the employees’ salary and corrections are necessary
Bear in mind that the changes or adjustments in the salary of the employee must undergo various of meetings first before such adjustments are made. Technically, these changes are based on the employees’ performances. This is due to the fact that the review for an individual employee’s performance determines whether he or she deserves an increase in his or her salary. Thus, completing the process for employee performance review should take place, first and foremost. Due to the fact that the employee’s annual performance review plays an important role in the monthly review process. By referring or basing to the performance of the employee, the reasons for the salary increase are justified.
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The Salary Review Process
Refer to the following below for the basic process for salary reviews.
- A meeting should be conducted for planning and setting goals or objectives that will serve as the basis for the evaluation of employees’ performance.
- A review form for employees’ performance evaluation is designed or created with the fields for the necessary information to be written.
- The employees’ performances are assessed as the performance review process is conducted.
- The results are documented using the performance review form.
- A meeting is conducted between the management and the team in order to discuss the results.
- Another meeting is conducted with the employee as the reviewer discusses and presents the results.
- A salary review then takes place in order to measure the performance of the employee.
- All important notes are jotted down using a salary review form.
The Essential Parts of Salary Reviews
Here below are the necessary information that are essential in completing the process for salary reviews.
The basic or general information of the form:
- The title of the form
- The date schedule for the salary review
- The date of when the form is filled out
- The date of when the form is submitted
- The date of when the changes are effective
- The name of the in charged person for processing the form
- The title or position of the in charged person – this is in order to make sure that the person who processes the review is an authorized personnel
The employee information:
- The employee ID
- The full name of the employee
- The job title or position
- The contact number
- The email address
- The home address
- The employment period (start and end date according to the contract)
The employee’s salary statement or pay information:
- The current salary or pay information
- The proposed salary
- The supervisor’s name & title
- The department or work location
- The company name
- The performance category or list of criteria
- The score or grade corresponding each of the category
- The remarks of the reviewer regarding the performance of the employee
The other information:
- The rationale for the salary review to be conducted
- The justification of the rationale for the salary review to be processed
- The future goals or aims
- The overall comments of the reviewer or appraiser with regards to the performance of the employee
- The employee’s feedback or comments
- The comments of the HR or the person in charge
The approval or confirmation information:
- The supervisor’s name, signature, and date signed
- The department head or administrator’s name, signature, and date signed
- The human resource department representative’s name, signature, and date signed
These are the essential information that are often required for filling out the review form for salary. The salary review process cannot be completed if the form is not completed. Statements or documents that are useful to support data or information should be attached if necessary.
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Few Tips for Salary Reviews
The following list below are few of the tips that you can refer to in order to make sure that conducting a salary and performance review will never go to waste. These will help you to achieve the purposes that you set for undertaking these two kinds of reviews. Feel free to peruse each and browse over the sample forms that are provided for you in this article.
- The goals or the objectives should be attainable in assessing or appraising the employees’ performances. These should also be inline with the business management’s appraisal objectives.
- There should be a thorough planning before the review is conducted. This is in order to make sure that the process is a success.
- The reviewer should have a great understanding on how to conduct the process.
- The process should be well explained to the employees. In other words, the employees should be well oriented regarding the process.
- Enough time should be given to the employees in order for them to be well prepared when the schedule form for performance and salary reviews arrive.
- In conducting the meetings, all important matter should be covered.
- The documents, such as the performance review and the salary review should be secured where non-authorized personnel or employees can have access on it. This is for the reason that these files are confidential.
- Make sure to ask for the employee’s feedback for these feedback are helpful for the company management.
- All decisions must be reviewed over before they are made into actions.
- All employees should be treated impartially or fairly.
- The reviews should be handled according to the purposes.
- The reviewer should be able to handle employees, despite of their different personalities. Most especially when results are out.
- All reasons for conducting the annual review should be justified well before final decision for salary increase is taken.
- The process will be more effective even with small considerations to the employees.
- Make sure that all notes or documents are based on facts. Or the results have a basis.
- In order to help the employees achieve the goals or objectives, there should be a monthly review before the schedule for annually performance reviews
- Employees should be given the chance to evaluate their own performance with the use of employee self-review form.
These are few of the tips that you might find helpful when conducting a salary and performance review for your employees. Just make sure that everything is documented and compiled in the individual employee’s personnel requisition file. The reason for this is that these documents serve as your references whenever you need them.
Just like when you compare the past reports to the current one, in this way, you will be able to determine f the employee is doing any progress with regards to is or her performance. Also make sure that all the written information in the form are accurate and precised. to avoid misinterpretations of the project reports. Summing it all up, everyone could use some motivations some time. It is inevitable that employees feel stressful at work.
Some reward or recognition is necessary in order for the employees’ self motivation, confidence and esteem will increase. It is actually important that you, as the manager, acknowledges your employees’ hard works and sacrifices for the business’ development. If in case that some of your employees does not make it to reach the qualifications for the salary increase, it is your responsibility to monitor their performance and keep them motivated. The reason why you are responsible for it is because the business’ performance depends on how you administer it and your workforce.
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