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Increment is a way of admiration by a company to an employee who has performed very well in the financial year. So it can be said that performance is the only criteria for increment. Well many will contradict with this statement because if you look at the performance criteria of every company then you will get to know that performance is not counted as a single constituent rather is a set of functions which make sure that the productivity of the employee stays good throughout the year.
So if you think only the best performing employees gets the increment then also it would be a wrong statement because as per the human resource policy every employee is liable for a fixed salary increment every year which may vary from 5% to 20% based on the job responsibilities and designation. Increment also doesn’t mean increase in salary of the employee but it can be in the form of a promotion or some ESOPs.
So today we will be focusing upon whether employee performance is the only criteria that lead to an increment. Let’s break it down to some points:
Performance is Directly Related to Productivity: If an employee is productive his performance is considered good. So it is not the performance which decides the increment of an employee but it is the productivity criterion that is counted as a real factor. But productivity is also dependant on various factors because an employee cannot be productive if proper communication is not sent to him/her regarding a task or proper guidelines are not issued to help the employee understand what he/she has to do actually. So a clear guideline with enough description should be communicated to an employee so that he/she can deliver better result and be more productive which will directly increase his/her performance.
Training and Counseling of Employee: Most people think what training and counseling of an employee has to do with the increment of an employee. Well for an employee to be productive having the right skill set is very important. This is the reason most companies and organizations conduct training of the employees to impart them the right skills set and aware them of the latest product/service or strategy they have to stick to. Training is an ongoing process which makes the employee knowledgeable of the task the company wants from them and this indirectly empowers the employee to be productive in whatever they do. So for being productive an employee has to acquire the skills which are imparted to him/her through training and counseling.
Job Satisfaction: This is the most important factor that most will ignore. Employees who are happy with their job tend to be more productive because happiness is a kind of satisfaction that makes the employee yield better performance. This is the reason companies and organization make efforts to keep their employees satisfied because a happy employee is better than 10 unsatisfied employees. Like people gets frustrated when they don’t receive the right service be it any service like insurance, house loans, Los Angeles title loans, AC repair etc. likewise an employee also gets frustrated if he is not happy with the company that doesn’t focus on employee happiness.
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