Decoupling appraisal from pay increases LO19845

drs G. Houtzagers (
Sat, 14 Nov 1998 09:47:26 +0100

Replying to LO19825 --

Eugene stated that the purpose of the performance review the exchange
between manager and employee should cover and that a relation with pay
increase disturbs this process. He states that pay raises can be related
to promotions and time in service.

I think that automatic raises related to time in service and promotions
are, at least in some segments of the market, no more of this day and age
Pay raise should be related to performance because that what it's all
about. You sell your quality to an employer and depending on the level of
the quality in relation with the performed tasks you are rewarded. This
should be the point of view form the employer as well as from the
employee. I would hate to be part of a system that rewards we in terms of
time in service or promotion.

First let get this straight: everybody wants to earn more. That will
always be a part of the thinking when you enter the performance review,
also if the companies policy is that the review is not pay related.
Therefore you have to accept that this is an element that is natural in
the conversation that takes place. As a manager you should be able to cope
with this. Part of coping is that the employee should not hear things
about his performance that he was not former aware of. If he performs
badly he should be told at the moment he does and not a half year later
just because then we have a performance talk. The same for performing

In case of rewarding try to break down the systems of grading and steps:
they mechanize you reward system and tend to bureaucratize your
organization. Try to implement flexible broadband systems that are related
to job families that are supported by job profiles. In that way an
employee can recognize his own skills in the defined profiles, he will
understand better the relation with rewarding and your pay structure will
have less risk to get out of synch.

Kind regards
Gijs Houtzagers
Director Human Resources
Hora park 7, 6717 LZ EDE, The Netherlands
P.O. Box 250, 6710 BG EDE, The Netherlands
Telephone 31 (0)318 695382
Fax 31 (0)318 695339
Cellphone 31 (0)6 22199492


"drs G. Houtzagers" <>

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