HRSINGAPORE Community Discussions
Annual Salary Review
Hi HR Practitioners,
With a change in policy, employee annual salary review timeline changes from anniversary of joined date (eg. Aug) to the calendar year (eg Dec). What approach is recommended to address employee concern in this case? Will it make sense if we do one-off backdate adjustment from Aug - Dec for the affected employees?
To clarify the timeline, now is Sept 2018 and your company would like to move salary review from employee anniversary joined date to a uniformed Dec 2018 date for all employees. I assume the example your provide below refers to an employee whose last adjustment was Aug 2017 (based on his anniversary joining date). As the salary review will now take place in Dec 2018, your suggestion is to provide a one time backdate adjustment for the period Aug-Dec 2018. I support this idea.
However, how about those whose anniversary falls between Jan to July and have their salary been reviewed in 2018? If they had, will they be eligible for a salary review in Dec 2018?
If the employee has earlier been informed that her salary will be reviewed in Aug but it gets shifted to a later date in Dec due to changes in HR policy, it will be more appropriate to accord her a one-off backdate. Additionally, this should be appropriately communicated to her when the change to salary review date is being announced – to address her possible concern. An alternative is viable (if budget is available/known) is to accord her the increase in the original date in Aug and give her a much smaller (ie. proportionate) increase in Dec though it may be an insignificant amount – which employee is likely to accept if it has been properly/ fully communicated.