Our FM outsourcing provider has come to me with pay increases for 2011. He is suggesting the rate of inflation for all of them, both high and low performers.
In my mind, I would suggest starting off at inflation as a base, and then take into consideration:
- Performance - did they just do their jobs or did they go beyond expectations
- Roles & responsibilities - did the staff take on more scope that warrants a pay increase, i.e. before they were managing 5 staff and one location and now they are managing 15 staff and 3 locations
- Market rates - if the market rate has increased for the position, then we should look to adjust the salary--all else being equal.
The only one I am not so sure about is performance. We have already decided bonuses based on performance. Should we include it in pay reviews?
Anything to add or am I off track here?