Chronicling the yearly appraisal wars
May 26, 2016 2 Comments
The bone of contention in the life of every employee in the corporate world boils down to two words : promotion and salary increment. Every year as the appraisal cycle approaches, managers brace themselves to deal with their team members and their only objective is to finish each employee’s appraisal without getting stressed and abused. Team members on the other hand gear up into combat mode to confront their managers. I have been through the emotionally charged stages as well but I was confused more than anything else because no one gave me clarity on what happens after the appraisal process.
Every employee believes their managers can wave a magic wand and get them promotions and salary hikes at their will. But the sad fact they do not choose to look at is that their managers are also employees who are managed by their managers and this loop goes right up to the top level of the organization. Contrary to popular expectations and beliefs, the authority of our managers extends only to being our representatives in the organization rather than our messiahs. They can pitch for our cause but the final decision is never in their sole hands. The CEOs of companies might sound like the all powerful all conquering rulers, but they are actually just the face of the companies appointed by the stakeholders and investors and their primary responsibility is to make and keep the companies running as profitable. This is the reason why the CEOs are the first ones to get fired when a company nosedives. The point is, no decision in the organization is made by an individual alone. Even the CEO’s fate is decided by the investors and stakeholders collectively. This is a very simple fact that every employee, be it at any level in an organization should know first and knowing this will help set expectations accordingly.
Not everything is in black and white though. Favoritism is prevalent in all organizations and people who are in the good books of their managers do get to grow faster. Like it or not, favoritism is a part of the system. For me, trying to keep myself in the good books of my managers is a strenuous activity. It would stop me from learning and exploring new things and gathering new experiences. Moreover, corporate ladder is a pyramid so as we go higher up the space keeps getting less. Every employee’s growth will slow down after a while. Managers have to move up the ladder first before they can pull their team members up. The irony is, everyone wants to get promoted and they look at what their managers are doing to prepare themselves to take up those responsibilities, but the question they should answer first is, is someone ready to take up their current responsibilities?
What burns everyone though is salary increments and bonuses. Usually there is no perform or perish policy other than in sales but the uncertainty is in not knowing how much to perform to get the salary hike and the bonus. There are no yard sticks to measure someone’s performance, so what is usually taken into consideration is whether the employee has met or exceeded the goals set for him/her and the appreciation letters/emails he/she has received. In every department or vertical, there will usually be many managers who will be managing one or more teams and there will always be more than one above average performer in each team. There can only be a limited number of people who can be recognised as top performers because top performers have to be given promotions/increments/bonus or all of them together. Choices have to be made which means bridges have to be burnt. Disgruntled employees might still stay back and persevere but employees who are at a stage in life where money is more important than anything else might leave. It is simply not possible to keep everyone happy at the same level at the same time.
In one of my previous organizations, during every appraisal meeting I was told that what I was doing was part of my role and the question that was put before me was what more was I doing for the organization. I kept telling my managers that unless I have visibility towards what the company is expecting from me based on my skills and experience, it would not be possible for me to find something more to do. This is one of the reasons that pushed me to do my MBA. My managers had no clue on how to give direction to my career so I had to take that task upon myself. IBM, where I work now has set up a novel way to promote employee growth. After completing 18 months in a role, all employees are eligible to pursue new roles within IBM. There is an internal portal where employees can apply for jobs they are aspiring for but under the condition that they have completed the requisites required to take up the new role. This is a huge filter in itself. With the work load employees usually have in their current roles, very few take up the challenge of learning more and move successfully into what they want to do and they are usually the ones companies would want to retain at all cost. There is a significant point to note here. Employees are paid for the jobs they are hired for and every role has a budget constraint associated with it. Unless employees are in roles where they are generating more revenue for the company (like a role in sales or consulting), it makes no sense to expect double digit salary hikes every time. This is where I like IBM’s approach even more. People looking for more money have the option of moving into roles where they will be generating more revenue for IBM.
I believe that what determines our growth is our attitude and perception more than anything else and we should never lose the focus and control we have over our lives. The moment we become dependent on the system for our way forward our journey stutters and slows down. Needling, pestering and abusing our managers for growth will take us nowhere. Rather, the focus should be on ourselves. As long as we are learning more and updating our knowledge and skills, we will keep creating demand for ourselves in the market. If we have enough confidence in the skills, knowledge and experience we have acquired over the years, we can also choose to become consultants and release ourselves from the cycle of hiring, promotions and salary increments. The choice is always with us and knowing and keeping the choice with us is the key to attaining moksha in our corporate lives.