From open salary systems to pay parity — companies are rethinking their approach to assessments and appraisals and embracing different models, reports the Times of India.
???? Startup Sahaj Software Solutions has embraced an open compensation policy based on the belief that power should be decentralised and that people should be able to decide on salary hikes collectively. Every person's salary in the company is visible to everyone, and compensation is decided by teams considering market dynamics. There is a higher chance of biases creeping in when a single manager appraises a bunch of subordinates, says Akash Agrawal, Co-founder and CEO.
???? While many companies do not follow this open salary system, some are taking steps to ensure pay parity. Ericsson conducts regular performance check-ins, and managers decide the frequency of such discussions. An open salary system would not be advisable when there's fierce competition between players, says Priyanka Anand, VP and Hear HR at Ericsson Southeast Asia, Oceania, and India.
???? Digital business transformation and consulting company Publicis Sapient follows a dynamic appraisal process where people are eligible for promotions during monthly and twice-a-year cycles, and do not have to wait till the end of the year.