Businesses need to differentiate between employees’ Increment Policy and Promotion Policy. There is a salary increase policy and a promotion policy. These two things may seem similar, but they are completely different. My consulting firm asked the HR Managers a question. Performance Appraisals are made through a performance management process to assess a person’s skills. For example, a sales department may hire a salesperson. Regarding performance appraisal, let’s say Sale-man A has the best-selling performance. The question is, should he be promoted to sales manager?
- All of a sudden, everyone says it should be increased. He is the best.
The problem starts there. Sale-man A should be kept from being promoted. Salary increase Incentive increase. All you have to do is give a bonus. Instead, when you become a salesperson and manager, the manager will not be able to take care of it, and you will start selling the following Salesman, and the teamwork will break down. This is true in many industries. In the beginning, when the business was released after the sale, there were indescribable losses in the long run.
You may have heard another example. In a big hotel, an employee starts from the bottom. He welcomes visitors to the hotel, carries their luggage and provides the best hospitality. After doing his best job for ten years, the boss liked him and hired him as a hotel manager. Despite becoming a hotel manager, he still waits in front of the hotel in the morning in a western suit and carries greeting bags to all the guests.
That’s all he can do. Customers were initially happy to be welcomed by the hotel manager but later complained when other hotel management failed. The boss reassigned him from his position as hotel manager to a receptionist. Of course, even though an item performs at its best, it must still be ready for the next level position. Good performance in a given position is more suitable for salary increases, incentives, and bonuses. There are two main types of business ventures: Increment Policy and Promotion Policy.
An increase policy is a standard that measures an employee’s annual performance. In other words, it measures the performance of the respective position. For example, how many sales does a salesman make a year? How much do you owe? How Much Debt Can I Debt? How many new customers can you find? And so on.
A promotion policy is a long-term policy for a business. In other words, what kind of people are qualified to be the managers of your business? These are standard policies that set out to be leaders. As a promotion policy, the relevant performance should be reasonable. You have to be good, and you can rule others. Have an economic perspective; You can set strategies. Being a Loyal Employee Ability to liaise with other departments; And so on.
If the two are defined differently, the situation will not be the same as in the hotel example above. We want our employees to understand that performance is relevant to the position but not directly related to the promotion and that additional requirements are met.
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