Salary reviews – Love them or loathe them…
Salary reviews are one of many HR processes organisations have to manage throughout the year. Generally, salary budgets are set by senior management depending on what the organisation can afford. When these are carried-out can depend on a range of different variables, for example when that person started with the company or calendar year.
When it does come to that time of year, it can be a nightmare to liaise with managers, especially in medium-sized or large enterprise companies. More often than not, HR have a master spreadsheet and then have to make a copy for each manager, deleting the employees a manager should not see. So this process may result in 20 versions of the original spreadsheet with passwords to protect them.
HR will then send these spreadsheets to the separate managers so they can make their suggested changes, using the password to open the document (which is often forgotten and has to be chased) and they then email it back to the HR department. These amends then need to be made to the master copy and double-checked. Of course there will be those managers who have put this task to the bottom of their ‘to do’ list and HR then have to chase. Phew, I’m exhausted writing this, let alone carrying-out this drawn-out process. And think of the errors which can be made having to continually copy and paste all the entries into the master spreadsheet.
Not only this, once the master copy is sent on to the financial department for approval, they will often come back and say the total is too high! Then the whole process has to start again. Then, low and behold, some budget is found and HR wonder who they should share it with…..The point is, there’s so many spreadsheets, so much duplication of effort and so much room for error. Some companies we’ve worked with take up to two months to complete this entire process…..That’s a long, long time.
However, HR software uses only ONE page. Managers can view this page and only see the employees in their team. They can quickly make the changes and the total is calculated at the bottom of the page. It can be done as a percentage of the employee’s salary or by adding the currenc value. Once everyone is happy, HR publishes it using an ‘effective from’ date. All employee’s previous salaries are automatically ended on the day before the ‘effective from’ date and the new ones start on that date.
HR can then filter their view of that salary review, page by department and can see previous salary review percentage (to check if they had a big/small pay rise last time) and their latest performance review score can be seen.
It’s so simple. Why not make your life simple and contact us now.
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