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Annual Pay Reviews???

Annual Pay Reviews???

Posted: 5th October 2020

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      Hi Lucy and Karen, there is big move away from ratings and forced disruption curves and as you say managers hated them, employees hated them at it was a big pain in the bum for HR as well along with not being that fair. So good they are on the way out but would be good to understand what you are seeing replace this? I know some managers also struggle without this crutch as well.

      Like you both I worked at the BBC and I remember feeling p*ssed off that I achieved my goals on the whole (I think!) but when it came to pay (outside promotions) I got the same increase annually as everyone else some who also worked did good stuff and others not so much.

      I know pay is not the main motivator and is not normally the reason people stay or leave as long as it is broadly seen as fair but people still like to be recognised financially as well. Maybe it is being done more around progression. Are annual pay increases still popular? How do you avoid just a standard increase and potentially demotivating your top performers?

      Really interested in your views and what you are seeing out there in this space. Apologies if there is loads in the club that I may have missed but only just had a bit of a dig around.


        Hi Paul,

        Thanks for the question.  Here is a quick summary of what we’re seeing happen with annual salary reviews

        1. Pay increases based around two things: a) The “going rate” in the market for the role b) The contribution made
        2. Line managers are given a budget each year based on company performance and market salary data (sourced through benchmark surveys, agencies and interviews)
        3. Line managers have a pay review conversation with their team members (this may be clustered in quarters or annually). During this conversation they discuss; their contribution over the year (based on the frequent check-ins), their value to the organisation and the budget available.
        4. This may lead to: • An increase in pay • No pay increase but offers of other elements that may be of equal or greater value to the individual such as career development/training/time off etc • No change
        5. Provide managers with a discretionary budget to make spot rewards to individuals/teams who deserve extra recognition – vouchers/cash/personalised presents. 
        6. Create the narrative for the perks as being more valuable than money (purpose, flexibility, social, learning, career) and build up over time

        Webinar here for more detail –

        Hope that helps!



          Thank you very helpful

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