[PDF] Managers’ Talking Points and Scripts

How do performance reviews affect salary increases?

Positive results from performance reviews and employee evaluations usually result in a merit increase based on the employee's level of performance. Employees who receive outstanding reviews typically are rewarded with greater salary increases. Employees who show minimal progress may still receive a salary increase, although a less generous one.

What is a salary review?

The review often looks over an employee's performance, current pay and average market salaries to see if an employee is eligible for additional pay. Sometimes, a company may offer a salary increase as an incentive for employees to stay in their current position or role. Companies may also offer a pay increase as a reward for high-performance work.

What is an employee performance review?

Your employee performance review will play a key role in the salary review process. In an ideal world, an employee’s performance would be measured against an objective set of job-related criteria.

How do I make the salary review process effective?

The key to making the salary review process effective, once the performance review piece is completed, is to compare this performance rating with the employee’s relative placement in the external market. Once you’ve done that, you can create a compensation matrix to be used within your...