Performance Appraisals and Salary Reviews...

Many companies utilize a merit pay system based on supervisors rating employees and doing job evaluations that decide pay increases. The use of a rating scale means that managers could choose between different rating categories and this can be confusing. One model the COMPA RATIO, almost always reduces the performance levels of promoted workers who are rated on jobs skills that they are yet to master in their newly promoted roles. Managers themselves must first comprehend the performance appraisal methods used to determine pay. Employees then must be fully trusting of any system that allocates their pay increases across tenure and seniority. 

 One of the most frequent complaints centers on employees feeling that regardless of how hard they worked, everyone would still receive the same increases. This is because the evaluation was done manually and employees with the same tenure were usually given favorable ratings regardless of performance. A computer- aided calculator system used in conjunction with manual assessments can help with job reviews.