This document discusses determining salary increases and requesting promotions. It covers factors to consider for salary raises such as performance, length of service, budget, and qualifications. It also describes different pay for performance models like merit pay and variable pay tied to goals. Common reasons for denying raises are discussed as well as signs an employee deserves a promotion, such as being a servant to others and focusing on execution rather than just responsibilities. The document aims to provide guidance for employees on appropriately requesting raises and promotions.

1. How to Determine Salary Increases and
Request for Promotion
By: Prof. (Dr.) Palwinder Kumar
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2. By: Prof. (Dr.) Palwinder Kumar
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Table of Content:
1. Gossips Among Employees
2. Employee Efforts
3. Types of pay for performance Models
4. The following factors for determining salary raises
5. Common Performance Deficiencies
6. Signs an Employees Deserves a Promotion (which
Never Appear on Performance Evaluations)

3. Gossips Among Employees
I met with my ex-colleague and she was bit low. After 2 years
working in the same organization, her recent request for a pay rise
had been dropped. Her manager/Supervisor had said that she didn’t
‘contribute anything new or add value’ to the position.
As you can visualize, after years of working overtime, missing
lunches and continuously going the extra mile to get her work
done to the maximum possible standard, she found his reasons
just a little bit annoying.
 Was her boss right to reject her pay rise?
 Shouldn’t hard work be rewarded?
 What if you just don’t have the time to “contribute something
new” to the position?
By: Prof. (Dr.) Palwinder Kumar
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4. You must be able to identify the direction the
organization needs to move and communicate
the desired actions to get there.
By: Prof. (Dr.) Palwinder Kumar
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Employee Efforts

5. By: Prof. (Dr.) Palwinder Kumar
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Types of pay for performance Models
1. Merit Pay
This is the most common pay for performance model. This is
where you increase the base salary of an employee as a result of
high performance. If an employee hits their goals or exceeds
expectations, you reward them by raising their salary at their next
salary review meeting.
 Raises are usually implemented on an annual basis.
 It allows you to differentiate and account for individual
performance within your teams.

6. By: Prof. (Dr.) Palwinder Kumar
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2. Variable Pay
This model includes a range of bonus types that vary according to payout
period, eligibility, and employee metrics. They are usually tied into
your employee recognition programs and, unlike merit pay, they are not
dependent on annual salary reviews.
Discretionary bonuses: Awarded to employees demonstrating outstanding
performance.
Examples include spot bonuses for achievements, project bonuses, and
retention bonuses.
Non-discretionary bonuses: Awarded when employees meet specific, pre-
defined goals and objectives. Non-discretionary bonuses can take the form
of short-term incentives (STI) or long-term incentives (LTI).
Examples: Team-incentive bonuses, and individual incentive bonuses.

7.  Performance is the first aspect.
 Financial condition of organization.
 The department’s “budget” for increment.
 Length of service.
 Persuade your senior with positive attitude toward work.
 Be nice with co-workers, no matter how they treat you.
 Connect emotionally with your colleagues and try to solve
problems of stake holders.
 You have gained more qualifications.
 Your responsibilities have increased
By: Prof. (Dr.) Palwinder Kumar
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The following factors for determining salary raises:

8.  Dress well.
 Be punctual to office.
 Take less leave.
 Be first to open up in discussion, meetings and suggestions.
 Delegate your works to peers who perform well.
 Loyalty toward organization as well as toward Seniors.
 Ability to meet objectives.
 Innovative Ideas.
 Your contribution to positive changes
 Your contribution to cost savings
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Cont.… The following factors for determining salary
raises:

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Common Performance Deficiencies
 Absenteeism
 Tardiness
 Poor attitude/insubordination
 Poor task performance
 Poor contextual performance

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1. Be a servant of others, not yourself.
2. Be humble, not arrogant.
3. Be optimistic, not pessimistic.
4. Focus on execution.
5. Think long-term.
6. Be a volunteer, not a draftee.
7. Be self-aware, not selfish.
8. Be adaptable, not rigid.
9. Be a teacher, not a truant officer.
Signs an Employees Deserves a Promotion (which
Never Appear on Performance Evaluations)

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References
1. Personnel and Human Resource Management By P Subba Rao
2. Human Resource Management By Jaquina Gilbert
3. Job Attitude as a Factor on Employees Performance By Dennis
Leoncio Estacio & Wendell Cabrera