Human Resources Resolution for 2013: Clean Up Salary Reviews


With tools like Merit-Matrix and other forms of incentives, managers, executives and human resources departments can clean up their pay review act for 2013.

Economist salaries by educational attainment.
Salaries by educational attainment. (Photo credit: Wikipedia)

Do you have a New Year’s plan for your business? A good resolution for human resources in 2013 is to clean up your salary review process!

One of the biggest mistakes executives and human resources departments can make during salary review is try to please everyone. Many companies still fail to clearly separate production, engagement and overall efficiency to see who truly deserves a raise.

When companies have a limited budget, there is little room to show something for each employee. Offering raises, even small ones, to less deserving employees can hurt morale and turn off engagement.

Average performers could get something, but individuals that make a difference to your company’s overall performance. Ideally they’re the people who are the key to your success, and should be treated accordingly.

Some human resources experts say that high-performing employees should get a raise at least two to three times raises given to average employees. Human resources departments should include performance as the determining factor when reviewing pay.

According to human resources departments, pay is the number one factor influencing pay decisions this year. The five biggest influences on pay review for 2013 are:

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