How to enable Salary increment percentage based on review ratings

Keka introduces a seamless integration of performance reviews with salary revisions. With our latest update, the process of determining salary increments based on employee review ratings is now simple, offering a more efficient and accurate approach to salary management.

How to enable this option?

Begin by selecting the Performance(1) tab on the main navigation panel to access the performance-related features. Once inside the Performance section, click on the Reviews(2) option to open the review cycles dashboard. Identify and select the specific Review Cycle(3) you wish to work with from the list available. In the Finalized(4) section of the selected review cycle, look for the Salary Increment(5) option. Click on 'Salary Increment' to view the salary increment settings related to the review cycle. To adjust or set up the salary increment guidelines, click on the Configure Settings button(6).

If department wise salary increments are varying then they can disable "Salary increment percentage is same for all employees across departments" option.  Below the toggles, there's a table that allows you to set specific increment percentages based on the rating ranges. 

For example: 

• Employees with ratings from 0 - 3 might get a 10% increment.
• Ratings from 3.1 - 7 could correspond to a 20% increment.
• Ratings from 7.1 - 10 could lead to a 30% increment.

You have the option to edit these percentages or add new rating ranges.

If any organisation wants to do it manually, then they can opt for that too by clicking on the pencil icon next to the employee.

If they want to import the increments manually, then can choose the import option and can upload the increment percentages.

For now we are storing the information and showing it in a excel for reference this will not automatically update the increments on the portal.

We have launched Salary increment recommendation by managers and approval chain for these recommendation. Please refer to article Introducing Manager Recommendations and Approval Chains for Salary Increments

Once the salary increment process has been completed in Keka HR, administrators can download a comprehensive Excel report detailing the increments and relevant data. The report, as seen in the provided screenshot, includes the following columns:

• Employee Number: A unique identifier for each employee within the organization.
• Employee Name: The full name of the employee being recommended for a salary increment.
• Business Unit: The division or unit of the organization where the employee works, if applicable.
• Department: The department to which the employee belongs.
• Performance Rating: The rating given to the employee during the performance review cycle.
• Band Label: Classification or level within the organization, which is associated with the salary band.
• Increment%: The percentage increase in salary being recommended for the employee.
• Eligible For Promotion: An indicator of whether the employee is considered for promotion alongside the increment.
• Reason: The justification or rationale for the recommended increment or promotion status.

After the review cycles are completed and the increments finalized, the ability to download detailed reports consolidates the process, offering transparency and a clear record for all stakeholders. These reports not only serve as documentation for the increments awarded but also provide actionable data that can inform future business decisions related to compensation and performance management.

The process from initiating manager recommendations to finalizing increments embodies Keka HR's commitment to fostering a culture of recognition and meritocracy. By leveraging the platform's robust features, organizations can effectively manage salary increments, thereby enhancing employee satisfaction and retaining top talent.

In summary, the salary increment feature set on Keka HR is a testament to the platform's flexibility and its alignment with modern HR best practices. It ensures that the hard work and achievements of employees do not go unnoticed and that compensation is both competitive and equitable.