Salary reviews are equally essential for a company’s competitive standing and financial success, and to an employee’s success and dedication to their continued development within the company.

What is a Salary Review?

A salary review is an examination conducted by a manager or company that determines if an employee should receive a salary increase.

This review often looks over the employee’s performance, current pay and average market salaries to make a judgment as to whether the employee is eligible for additional pay. A company can also offer a salary increase as an incentive for employees to stay in their current position or as a reward for high-performance work.

Why should you complete a Salary Review?

Some of the benefits of conducting and participating in a salary review are:

• Provides opportunity to receive compensation aligned with their performance
• Offers the ability to retain high-performing employees and work with those who are performing less than expected according to key performance indicators established
• Allows employees to express any concerns or ask questions related to their salary or role
• Opens channel of communication between employees and employers and helps improve employee morale by providing opportunities to acknowledge accomplishments

Yearly salary reviews are also a great time to get compliance by rolling out new contracts of employment. Offering a pay rise contingent on signing the contract.

CIRCLE can complete in-depth salary reviews that compare market rates and award minimums – very important now as all wages and super have just increased.

Also…Have you considered your pay structure – as employers do you ‘pay for position’ or ‘pay for performance’. With a salary review, you want to consider paying higher roles more for performance. Positional pay rarely has a motivating factor for employees – they think they are being paid just to turn up.

A well timed and efficient salary review process can have a positive influence on a company’s overall culture. Showing employees that employers acknowledge their value, consequently offering a fair salary that will increase employee morale and trust in the company.

Written by CIRCLE Recruitment & HR

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