Transcript
Good Morning ♫♫♫♫!!!
Appraisal: IT Industry
-SUDIP PAUDEL
Overview
1.) Assessing various appraisal methodology in IT industry
2.) Trend for salary hike in last 5 years in IT industry
3.)Trend for salary revision for next three years
4.) linkage between appraisal system and attrition rate of the IT industry
5.) Views/recommendations
What is Performance Appraisal?
Fulfillment of job requirement
Continuous development of human resources.
Potential
Periodic process
Both quantitative and qualitative evaluation of job performance
Features of Performance Appraisal
Appraisal methodology popular in IT industry
1.) 360 degree feedback system2.)Bell curve based performance appraisal system
A.) 360 degree Performance appraisal
♪Comprehensive feedback
♪ Highly effective performance evaluation tool
♪ Very reliable
♪ popular
♪ Realistic evaluation
Features of 360 degree feedback system
B.) Bell curve based performance appraisal system
Features of Bell curve based appraisal
♪ Compares employees performance relative to others
♪ Segregation of workforce
♪ Helps to differentiate individuals
♪ Well accepted
New trends in Appraisal…..
“Only in our dreams are we free, the rest of the time we need wages.”
-Sir Terry Pratchett
Trend for salary hike in last 5 years in IT industry
For the past five years, average salary hikes in Indian IT sector have been around 10 percent
Regional practices in the economy
Industry/company performance
Compensation policy of the institution
Supply and demand of labour,and
Individual’s job performance
Trend for salary revision for next three years
Employee with skill in verticals like cloud, mobility, social media and analytics will get huge compensation
Salary rate and incentives will be high for top performers
Average Industry salary is expected to grow at an annual rate of 6-9%
Salesforce employee salary could be determined by the revenue they bring from client
Linkage between appraisal system and attrition rate in IT industry
Attrition management has become the strategic focus and compelling necessity of business today.
The toughest concern for an HR manager is however the high attrition rate
IT industry has one of the highest attrition rate. Appraisal should be done fairly so that conflict , dissatisfaction and attrition rate gets reduced.
The share of attrition due to dissatisfaction in appraisal is also growing as techie are finding better opportunities at mushrooming startups and poaching is always there.
Problems with current appraisal process
People are inspired and motivated by positive, constructive feedback- and the “appraisal” process almost always works against this.
The most valuable part of an appraisal is the “development planning” conversation –what can one do to improve performance and engagement- and this is often left to a small box on the review form
Employees need and want regular feedback(daily, weekly), so a once a year review is not only too late but its often a surprise. Regular coaching is the key to alignment and performance.
Views/ Recommendations:-
Not only performance but also potential should be considered during appraisal.
Focus should be given to team performance also
We have a shortage of key talent and the keys to success now focus on regular alignment, coaching, creating passion and engagement, and continuous employee development.
Set and reset goals frequently. Companies that set performance goals quarterly generates 31% greater returns from their performance process than those who do it annually, and those who do it monthly even get better results.
Companies thrive by building skills-so in addition to encouraging managers to produce good work, HR should incent them to produce a good talent as well.
One more thing………
I never criticize anyone. There is nothing that so kills the ambition of a person as criticisms from superiors. I believe in giving a person incentive to work. The ultimate way to develop the best that is in a person is by appreciation and encouragement - Charles M. Schwab
THANK YOU
Annexure:-
Citehr.com
Quora.com
articles.economictimes.indiatime.com/
Slideshare.net/
Human Resource Management text and cases by VSP Rao
Forbes.com
Info.shine.com
Wikipedia.com
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