Many employees ask for a raise during their performance review meetings. If possible, you want to keep this discussion separate. Performance and compensation are significant enough on their own, so it’s usually not ideal to mix the two. So if your direct report raises the question, thank him for bringing it up and promise to get back to him by a specific date. Take time to fairly assess whether an increase in pay is appropriate. When you do talk about it, explain that a person’s salary is determined by two things: the value of the job to the organization and the quality of the individual’s performance. Ask him to consider both factors, examining both how the job can be made more valuable to the company and how his performance can be improved. What additional duties could he take on? How much extra responsibility could he assume?
Adapted from
Performance Reviews (20-Minute Manager).
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