- Depending on the organization, salary reviews may be done on an annual, bi-annual or longer basis. In some cases, a salary review may be requested by the employee and performed at the discretion of the supervisor.
- One goal of a salary review is to give rationale for any salary or bonus decisions being made. The main purpose, from a supervisor's point of view, is to encourage an employee to build on strengths and work on weaknesses, thus improving employee performance. If a employee requests a review, it is likely that he considers his salary is too low and perhaps deserves a raise or promotion.
- For an employee, a salary review is a significant chance to discuss any issues he has with compensation and benefits. If an employee does not feel adequately compensated, a salary review is a good opportunity for him to bring this up with a supervisor. Employees seeking a raise or compensation should be prepared to provide compelling rationale.
- Salary reviews for supervisors are tools to communicate to an employee about her performance. As a written assessment, the salary review gives an employee an overall performance evaluation that will tell her where the supervisor sees her strengths and what she needs to work on.
- If there is a significant difference in opinion between the desires of the employee and the supervisor's point of view at the time of a salary review, the stage is set for conflict. The way negative reviews are communicated to an employee and the way the employee receives criticism will determine whether the salary review results in a positive outcome or simply creates unnecessary tension in the workplace.
