A salary appraisal is one of the essential factors that convince and motivate employees to stay in a company and work harder. The eligibility of an employee for a salary appraisal is usually determined through a salary review. It is an examination done by a company manager to determine whether an employee should receive a salary increase. A salary review is often conducted by a manager on an annual basis.

Nonetheless, to ensure that the annual salary review process is as seamless as possible, it is necessary for managers to feel assured about the review procedure they carry out and the pay decisions they make. In this case, supporting the company’s human resources (HR) department would be helpful. Read on to find out how HR services in Singapore can help managers in the salary review process and how it improves employee satisfaction.

1. Clarify company views on compensation and salary setting 

An incredible way to address employee attitudes and expectations is to be transparent and open about the way the company looks at compensation and salary setting, including what performances the new pay is going to be based on and the expectations the employees can have when it comes to monetary and non-monetary rewards.

The HR department can assist company managers in this area by ensuring clear communication between managers and employees, as well as clarifying the parameters affecting salary setting to both managers and employees. HR can also assist managers in viewing compensation from a broader point of view and in coming up with more ways to reward employees other than their salary.

2. Come up with valuable models and create a basis for dialogue

Another way for HR to support company managers in carrying out the salary review process is to explain the overall pay structure of the company and its policies on salary ranges or pay grades to the managers. This will essentially help managers have a better understanding of the pay-setting process. At the same time, it can help them develop effective models upon which to base how the employees’ salaries are to be increased in relation to their performance levels.

In case there are disagreements or concerns, HR can also create forums for discussions and motivate managers to talk about the way they evaluate employee performance, interpret the criteria for pay, and link salary increments to performance assessment. This will not only facilitate the job of the managers but also contribute to a more harmonised approach among them and their employees.

3. Provide direct reports and regular check-ins

HR can make the pay-setting process easier for the manager by making compensations and rewards a part of the company’s daily work routines through direct reports and regular check-ins. This will allow managers to move their focus away from the annual salary review conference and review procedure and obtain a deeper understanding of employee performance.

Furthermore, it provides managers with greater confidence when evaluating performance. Employees will be better satisfied due to the managers’ ability to conduct fair assessments and provide frequent feedback and appreciation throughout the year. 

Conclusion

HR departments can help company managers streamline the salary review process in many ways. So, if you are a manager or business owner who is responsible for evaluating your employees’ performances and increasing their salaries, seek the assistance of your in-house HR team or use HR outsourcing services in Singapore to ensure that your review procedure goes as accurately and smoothly as possible.

For the most effective and reliable outsourced HR services in Singapore, Enable Consulting is the agency you can count on! We offer a variety of excellent yet affordable HR services to help meet your different business needs, such as HR advisory, HR consultancy, HR systems, and more. To find out more about our valuable services or discuss your requirements, feel free to contact us anytime.