Annual Reviews: What do I do when workplace policies conflict?

07/30/07

Question: Our handbook states that that we give a yearly review and compensation review on the first anniversary of an employee’s tenure with the company, and then every October after that. We hired an employee on August 5. Should she receive a review and raise in August and then get reviewed again in October and receive another pay increase? Answer: You have two options here:
1) You can revise your policy so that all employees receive their first review in October. Employees who have not been with the company for a full year would receive a prorated increase, based on their performance rating and length of service. For example, an employee with six months of service prior to October would receive one half of a full year’s increase. Going forward, he or she would continue to receive annual reviews (with full-year increases) in October.

2) You could follow your current policy and wait until next August to give your new employee an annual performance and salary review. The following October, you could give her a prorated increase, based on the amount of time that has passed between the August increase and the regular company cycle in October. Going forward, she would continue to receive annual reviews (with full-year increases) in October.

The first choice seems a little easier administratively, since all employees would always be on the October schedule.

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Introductory Performance Appraisal Form
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