Salary reviews is a module that will allow you to set salary increments for your employees. Any approved changes on this section will automatically be reflected in the affected employee's position history.
For example, if employee A has a salary of €7/hour as at 1st January 2021, and the employee's manager approves an increase of €1/hour as of 1st January 2022, then employee A's position history will automatically show a new position as at 1st January 2022 with the new hourly rate.
If you have the following permissions, then you will be able to make use of this module.
- Create draft salary review;
- Approve salary review.
How to create a salary review
Click on “Start salary review” located on the top right side of the screen:
A new dialogue will appear, this will allow the assigned employee to set the parameters.
You can set salary reviews on a complete department or on an employee. Set an “Effective from” date and input the desired amount depending on the option chosen;
- Manual increment;
- Fixed percentage;
- Fixed amount;
- Grade progression.
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Manual increment
- This selection will allow the user to manually increase an employee's salary to a desired amount.
- Start by selecting a department and/or employee, followed by an effective from date. The effective from date is the start date of the salary increase.
- Click on “Generate” to complete.
- On generating, a new review will be created. However, in this case, the increment amount will be €0, and will need to be updated manually.
- Click on the edit icon to open the new salary amount dialog.
- Insert the new salary and click save.
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Fixed percentage
- This selection allows a maximum cap based on the percentage of the currency salary. If the percentage will be more than €XXX, which is the maximum yearly increase, for example, this can be set accordingly so that the company's defaults are met.
- Should the percentage increase be less, then this field will be ignored and the percentage increase will take place.
- Fixed amount
- This option is similar to the manual increment but requires less steps. Instead of having to edit the increased amount the user can input the desired amount and the increase in salary review will be based on that amount.
- After being generated, this review too can be edited. When ready, the user can proceed by clicking on the send for approval button in order for the assigned employee to approve the review.
- Grade Progression
This option is used if you have salary scales in place. You can add Salary scales through the Salary Scales tab inside the Salary Reviews section:
A is the highest grade you may have, and 7 is the highest step. Grade A7 is the highest grade and step you may have.
After adding the salary scales, go to Draft Reviews and start salary review:
Selecting step means the employee(s) will go up from the previous step to the next step within the same grade (for example from Grade B3 to Grade B4).
Selecting step then year means the employee(s) will go up from the previous step to the next step set in the following year (for example Grade B3 in 2023 to Grade B4 in 2024).
Selecting year means the employee(s) will remain in the same step but be given the rates of the following year (for example Grade B3 in 2023 to Grade B3 in 2024).
How to approve
Kindly note that the “Approve salary reviews” permission needs to be added. Approved reviews cannot be edited from the salary reviews module.
The review will appear as pending in the “Draft reviews” tab, including the effective date, current salary, the incremental amount including a percentage increase and the updated salary.
Each review can be edited or deleted by the reviewer by pressing on the options available.
Note: On edit, reviews will only allow a manual increment.
To send for approval, the reviewer must click on the "Send for approval" button
When this is complete the review will appear in the “Pending approval” tab with the option to confirm or reject.
When either one is selected, the salary review will appear in the “Closed reviews” tab. Approved reviews will be displayed with normal text whilst denied ones will have the text struck through.
A new position with the updated salary will appear in the employee profile effective of the starting date set in the salary review.