Pay for Performance Guidelines
tonia
38 Posts
Hello Forum 
Our company gives annual % increases, 1%-3% at annual reviews.
A recent audit, done by me, has shown that a Supervisor has given an employee, who has had progressive disciplinary action, all the way up to a final written warning, a 3% increase. Hmm.. The audit also showed another employee, who has had no prior discipline was given a 2.5% increase.
My fear is that this could lead to racial discirimination, since the one employee is african american and the other employee is caucasian.. and shows unfair employment practice.
I know I have to correct this immediately, but to put a policy in place that states "problem children" will be subject to a sliding scale, based on performance.. how do I determine (or word) the appropriate language?
Do I say that depending on severity of the offense, will determine the rate (if any)?
Our company gives annual % increases, 1%-3% at annual reviews.
A recent audit, done by me, has shown that a Supervisor has given an employee, who has had progressive disciplinary action, all the way up to a final written warning, a 3% increase. Hmm.. The audit also showed another employee, who has had no prior discipline was given a 2.5% increase.
My fear is that this could lead to racial discirimination, since the one employee is african american and the other employee is caucasian.. and shows unfair employment practice.
I know I have to correct this immediately, but to put a policy in place that states "problem children" will be subject to a sliding scale, based on performance.. how do I determine (or word) the appropriate language?
Do I say that depending on severity of the offense, will determine the rate (if any)?
Comments
Do you already have some kind of policy and procedures in place? I would think you would since you mention the 1-3% span. Review them carefully. You probably have enough information there already that supervisors should know how to follow them without making a mistake so full of potential liability. If not, just add a blip about the importance of fairness and that your company does these reviews while disregarding race, etc. (however you have it worded elsewhere in your policies).
Do both employees work for the same supervisor? If so, I would get an explanation from this supervisor, and then counsel them again on how to do reviews and give raises. If the first employee truly deserved a better raise and the second employee a not so good raise, the reasoning should have been clear in the paperwork. If they work for different supervisors, you need to retrain your supervisors as to what consitutes poor performance, what impacts raises, and how to complete the paperwork properly.
Good luck!
Nae