INCREMENT AND PERFORMANCE APPRAISAL POLICY

This policy guides employees on the Annual Increment procedure and the purpose of the performance appraisal in Eshopbox.

INTRODUCTION

An annual increment process is a process of giving salary increments or promotions along with the salary revision to the employees on account of their performance in a particular financial year. Salary revision is a performance and merit-based increase and cannot be considered a matter of right or entitlement by every employee.

An annual increment is dependent on the Performance Appraisal, which is a regular review of an employee's job performance and contribution to a company. Eshopbox uses performance appraisals to determine employees' progress and contribution and then review which employee has contributed the most to the company's growth, reward high-achieving employees and accordingly provide increments to the employees after one year.

ELIGIBILITY CRITERIA

Employees who have completed 9 months to 12 months with Eshopbox from the date of their joining or the date of their last appraisal shall be eligible to be granted the annual increment.

INCREMENT CYCLE

Eshopbox is following two increment period to ensure fairness and uniformity in the company.

• An employee who has joined in between 1^st November to 30^th April is eligible for a pro-rata increment applicable in/from February Month.

• An employee who has joined in between 1^st May to 31^st October will be eligible for a pro-rata increment applicable in/ from August Month.

The same cycle shall be applicable for the tenured employees keeping in consideration their last increment month.

PURPOSE of Performance Appraisal

A performance appraisal allows individual employees and their manager to review performance, work content, loads and volume, look back on what has been achieved during the past year, and agree on future objectives. It is also the time an employee can set personal goals and assess any learning and development requirements that may aid growth.

RESPONSIBILITY of the various parties in the Annual Appraisal Procedure

1. HR’s are responsible for:
   
   

   • Holding an appraisal review and carrying out the appraisal process in a seamless manner.

   • Announcing the initiation of the appraisal process.

   • Sharing the appraisal forms to employees and their managers without any information leakage to any other party/person until explicitly asked.

   • Ensuring the Appraisal of employees fairly and objectively against agreed objectives and action plans. 

   • Following up actions arising from appraisals.

   • Conducting a review call with the employee and manager to understand their expectations and conclusion points.

   • Ensuring that a written record of the appraisal meetings is completed.     

    

2. Managers are responsible for:
   
   

   • Ensuring each member of staff in their team is clear about what is expected of them.

   • Ensuring that new employees have work targets and objectives set as part of induction.

   • Conducting meeting with team members monthly to review progress and provide constructive feedback.

   • Ensuring to score and appraise an employee without any biases and prejudice.

    

3. Employees are responsible for:  
   
   

   • Taking an active role in reviewing their performance appraisal and target setting.

   • Ensuring active and analytical participation while filling the performance appraisal forms.

   • Ensuring receptiveness to the manager’s and HR’s remarks and feedback.

Appraisal Process

1. All Employees must be informed of the appraisal at least four weeks before the assessment.

2. Self Appraisal- Performance Appraisal Form must be shared with the employees four weeks before the appraisal.

3. All Employees should be instructed well on how to fill the performance appraisal form.

4. A copy of the completed self-assessment form should be returned to the manager two weeks before the appraisal.

5. One to One meeting- A one on one session should be conducted between the employee and manager and employee and HR if required. The one-to-one appraisal meeting will be carried out in private to provide for confidentiality.

6. Management- HR Meeting- A follow-up meeting between the HR team, manager, and the HOD will be conducted. Increment % will be discussed out and calculated, deeming the remarks and instructions of the management.

7. When an appraisal discussion is completed, it should be recorded using the appraisal form. The appraiser should complete this form and get it countersigned by HR. It then should be accordingly shared with the employee.

Increment Value & or Percentage Industry Standards

While the % or the value cannot be determined or fixed each year as a matter of policy, it is pertinent to note the objective, background, & philosophy of salary revision.

• Salary revisions or increments are basically to offset inflation and to meet the market standards.

• Increments on a merit-based are highly motivating & mutually rewarding.

• Recognize and reward performers & counsel low performers.

• One of the objectives of the exercise is to identify High Performers & Low Performers.

• Last but not least, to Strategize Corporate, Firms & Individual Vision, and Mission Goals.
  
  

Keeping these objectives in mind, it is difficult for us to fix a % or a sum that each individual will get as an increase on becoming eligible. Increments are based on:

• Company Profits

• Company margins

• Department’s contribution

• Individual Contribution

• Industry Trends

• Indian economic trends

• Stakeholder’s feedback. ( Colleagues, Peers, Sub-ordinates, Suppliers, Clients)