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As you are aware, there is one potential issue with the focal date performance increase option---employees are hired throughout the year, so some reach their first focal date with less than a year of service, which presents the employer with a choice of granting a full increase with less than a year of performance, prorating the increase for the amount of time worked in the cycle, or making the employee wait to the following cycle and plussing up the increase to account for the time over one year. All options seem to represent a less than ideal way to introduce an employee to a firm's pay for performance plan.

Are you aware of an effective way of dealing with this situation?



An excellent point, and one worth its own post, I think. So let me throw out some thoughts there and then invite comment from you and any others on the question.

Thanks, as always, for the comment!

What are some of the recommended approaches to converting from Anniversary Date performance reviews to a focal date? The main concern is the manner in which one's increase for the year of the conversion would be prorated to address the change in the timing. In conjunction with that point, how does one address situations where review dates are pushed back as opposed to being pushed forward? I would assume raises would be prorated at the time of the new review but this would lead, potentially, to a large population feeling as if their review was pushed back to delay the Firm's outlay of salary expense.

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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