What to do when employees have high appraisal hopes?

If not twice in a year, then for once at the beginning of every year, the appraisal time strikes. Apparently, every employee has high hopes of getting a salary raise. However, for most of them, it ends up being a disappointing one. Why? Because they had set unrealistic expectations or because your budget was low. 

No matter what the reason for low raise is, the immediate reaction of the employees would be to start looking for a new opportunity. Some of them may drop the idea soon but the ones who are highly skilled and motivated will continue to look for a better opportunity. And when they get one, they will leave. 

Such a situation isn’t healthy for your company. You just cannot afford to lose the best of your employees. So, read this blog to know how you can handle the appraisal time appropriately. 

• Do the budget allocation-

First of all, besides, taking care of your employees at the time of appraisal, you also have to take care of the payroll. Use your payroll software to decide the budget for each department. Tell the budget to the manager and let him divide the amount amongst his team. After all, who knows the team members performance better than him? 

• See the diligence-

Before dividing the budget amongst the team members the manager must also consider the potential, diligence, and passion of employees. There may be some employees who are very well experienced but quite lethargic and resistive whenever something new is assigned to them. On the other hand, some employees may be the ones who are keen to learn and take up new tasks. Prefer them more than the rest. Such employees are going to be more productive for your company. So, divide the amount accordingly in the payroll software. 

• Let them analyse their performance-

After you have done both the aforementioned tasks, you should ask the employees to use the performance module in the HR software you are using. Most of the comprehensive HR software in India have this feature now. 

Let them do some self-evaluation. Form their KRAs and ask them to give themselves marks. This is a very important step as this will act as a reflection of all that they have done over the past year. This will also help them in being real with their appraisal expectations. 

• Back your reasons- 

Apart from uploading the amount in the payroll software, you should also intimate the employees first about the appraisal you did, after you have asked their expectations. If they seem to be disappointed, give them your reasons for the same. Make sure your reasons are just and not biased. 

Follow the aforementioned points at the time of appraisal and you will be able to at least not disappoint the employees that are of high importance to your company.