Pay review process

Frequently Asked Questions About Pay Reviews

What Are Pay Reviews?

A pay review assesses an employee’s performance vs expectations to determine if their salary should increase. 

How Long Does a Salary Review Take?

The length of a salary review can vary from employee to employee, depending on the complexity of the position and how well they’ve been performing. 

How Often Are Pay Reviews Conducted?

Pay reviews are typically conducted annually. In some organisations, pay reviews may be conducted more frequently, timed to the completion of a big project. They may also be held upon a promotion or job title change.

Are You Obligated To Perform a Pay Review?

Organisations are not required to perform a pay review. However, many organisations do so because it’s a part of the company’s rewards programme. Even if it’s not required, it’s still important to review the employee contract to ensure all requirements in regard to salary are met.

What Factors Are Evaluated During the Pay Review Process?

The pay review process involves analysing several factors. A performance review is involved to ensure the employee met and exceeded expectations for the position. A market review is also conducted to ensure the employee’s salary is in line with what other companies offer. The organisation’s budget is also taken into consideration.

What Does the Planning Phase in a Pay Review Process Include?

The planning phase of the pay review process involves:

• Determining Objectives. What are you hoping to get from the review? A fairer salary across your workforce? Increased productivity from clear job expectations?

• Checking Contracts. Is there a clause in an employment contract that dictates how their pay should be handled?

• Review Job Descriptions. Is the role’s description clear enough that employees understand what’s expected of them?

• Researching Standard Market Pay. Are your employee’s salaries in line with similar positions in the job market?

• Defining the Budget. Is your budget flexible enough to make the pay increases you promised to your employees?

What Does the Performance Review Phase Include?

The performance review phase of the salary review process involves:

• The use of surveys, which determines your employees’ views of their job and find issues that negatively impact their productivity

• A priority placed on transparency, so employees know what’s being reviewed

• Sharing results with employees to keep the process objective and fair

• Implementing a rating system that simplifies the analysis of an employee’s performance