The appraisal time is round the corner. Everyone is wide-eyed pondering about the salary hike. The review cycle are almost done. Most of the organizations give a yearly hike to their employees based on the last year performance. So have you started guessing for how much you will earn in the current fiscal year. Most of the employees have started calculating the hike and discussing it with colleagues. This may be a little difficult but not impossible.
You have started thinking about the salary increase. This assessment will help you determine whether the increased compensation is keeping pace with the cost of living and inflation on general items. You can also match the compensation with your peers working in other organizations.
Moreover, the best part, by assessing your hike in salary your can keep the anxiety levels in check. Arriving at an approximate figure will help you plan things smoothly.
So, now the next important question is how to calculate or assess you salary hike. Many factors help you calculate what will be the hike in your current salary. Some of them are as follows:
Performance:
The performance of the employee is the most important factor while deciding the salary hike. Organizations decide on salary hikes based on consistent performances. If your performance was consistent throughout the year, then you can expect a good salary hike based on your market condition. An above average performer will get a good hike irrespective of organization’s performance and market conditions. So if you assessing you hike percentage, just think of the past year performance. If you are a consistent performer, then you can demand a better salary based on your performance. Good Negotiation skills add to this factor.
Performance of the Company:
This is another deciding factor while assessing the salary hike. Performance of the company also decides on your salary hike. If the company is able to achieve its targets, then only it will reward its employees. Check the company’s profit and loss statements of the last financial year. Analyze the company’s capacity to give a higher raise to its employers.
Market Status:
The market conditions also affect the hike of an employer. Examine the market conditions during the review period. If the market conditions are positive, expect a hike in the salary. The market trends influence the corporate scenario and are a deciding factor while giving a hike.
Current Salary:
The hike on a salary also depends on the present salary. Understand the components of the current salary. Do a research on current salary and the average salaries received by people in a similar profile. This will help you derive at a hike in the salary.
Compensation Strategy of the Organization:
Analyze the company’s compensation strategy to determine the hike on your salary. Check the last five years trend of the company in terms of salary hikes. Whether the company rewards high performers or long-term employee, assessing these trends will help, you know determine your salary hike.
Be open to trends in the market and compensation methods of the company, but it always better if you do hard work. Remember, nothing pays more than good work. So work hard and get shining rewards.
