Use a common date for all salary administration

by on June 22, 2009 · 0 Comment POSTED IN: HR Info Center

A Common Salary Administration Date Will Help your Company

Want to simplify your salary administration process? If you’re among those who do these reviews around each employee’s anniversary of hire, consider adopting a common date for everybody. You stand to reap at least two benefits from that approach:

  • Efficiency. Doing 50 reviews in, say, a two-week span gives you economies of scale. You gear up for the task and get it done. By contrast, when you do 50 reviews in 38 different weeks, you’re always shifting your attention back and forth between somebody’s salary administration issues and unrelated tasks.
  • Fairness. What if you’ve given average 4% raises to everybody whose anniversary date rolled around – up until November, when you discover a shortfall in the budget? Do you stiff everybody who’s unlucky enough to have been hired in December? Warning: Potential inequities exist in the all-at-once approach, too. Consider pro-rata raises for those with less than one year of service – or manage expectations at the time of hire.

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