Why should pay reviews and performance reviews be separate???

Dear Aunty B, 

I have a new HR manager who has come from a large company and seems to? justify his job by complicating ways of doing things that add time,? paperwork and stress.

His latest contribution is to tell us that we need to separate out our? pay reviews and performance reviews. He proposes that we do pay reviews ?in June and performance in October/November.? That seems crazy and will add weeks to my already very busy, crazy and? exhausting life. There was nothing wrong with the way we used to do them? anyway which was once a year in July with any pay rise backdated to July?1.

Fed Up

Dear Fed Up,

Oh, dear. Don’t you hate the new kid on the block from the BIG company?who comes in and disrupts all are quick, finely honed if slightly?chaotic way we run our business?

Look, the fact is you don’t need to separate the two. In fact I find the? whole idea of not talking about pay in a performance review misleading. ?It’s the equivalent of asking the employee to sit down, discuss their? future while ignoring the fact that there is a big elephant in the? corner of the room.?People should know their performance is below expectation and they won’t? be getting a pay rise. But they should also know that you will follow up ?on the feedback you have given them and review their performance at a? later date.

Conversely, they need to know that they have done a good job and there is ?a reward for that.

Remember also that as your company grows you must be vigilant. While you? must introduce new processes to support the growth, you need to be on ?the look out for any unnecessary new ideas, systems of processes that? are complicated, time sucking and costly. ?Praise staff who come up with quicker ways to do things.?Constantly question why something takes so long and get staff to work on? ways to speed things up.

Good luck,
Your Aunty B


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Email your questions, problems and issues to auntyb@smartcompany.com.au right now!



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