FAQ—"How do I tell this person she's not getting a raise because she didn't work up to speed? She'll argue with me, question my judgement, ask me for proof, facts, etc.. It would be easier to just give her a bit of money and let it go at that."
Answer: A performance review is not about that person. It is about that person's performance in relation to the goal. You and I aren't really supposed to evaluate the person, we're supposed to evaluate the performance. And that performance doesn't happen in a vacuum, it's performance relative to a goal.
If you don't have goals for your people, you are a bureaucrat and have no right to evaluate anything. Only managers with goals and a vision have the right to evaluate other's performance.
FAQ—"How do you decide on a salary increase?"
Answer: Don't let the annual wage review make you lose sleep. There are only three ways this can go.
1. No salary increase. Salary stays the same. That's for people who's work is minimally acceptable, but not quite bad enough to fire them. The salary review should show that improvement is required. It also tells the employee that if performance gets worse or does not improve, they will be eventually considered for dismissal.
2. Cost of living increase. For those people who have done the work as required. They have not expanded or grown the role, they've just done what was asked. Nothing extra, but no fault either. Comfortable coasters who believe life as they know it will go on forever, but, - we need them.
3. Wage raise. For those people who have brought extra value to the role, have gone beyond the requirements, have expanded what this role brings to the department. They have moved the process ahead.
FAQ—"Do we have to have a performance review?"
Answer: All companies that don't use performance reviews, find seniority becomes the replacement. Generally, they're not happy about that.
FAQ—"Should performance reviews be connected to salary reviews?"
Answer: You don't have to. You could tie it to nepotism.
I hope it helps you out as you step into the next review meeting with your people.
See you for breakfast,
Wolfgang
P.s. Great ideas, - "A generation with financial incontinence."
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