Revised: November 2006
Policy
All support staff employees and salaried field staff employees will receive a performance evaluation at the end of each fiscal year, which will determine their eligibility for a merit increase.
Accountability
It is the responsibility of every supervisor to conduct a performance evaluation with each of his or her employees annually. The HR department will communicate the specific scheduling and procedural guidelines before the annual evaluation period.
Conducting effective performance evaluations is one of the most important roles of a leader, coach, and supervisor. Providing members of each team timely, direct, honest feedback is an obligation and a duty.
If a supervisor needs guidance on how to conduct an effective evaluation, he or she should contact a representative from Human Resources.
Practice
Forms and Supporting Materials
Each supervisor is responsible for using the correct form for his evaluations. Contact your supervisor or the HR department if you have questions. Carefully review the Performance Rating Definitions before beginning the evaluation process.
Area Supervisors and Franchise Business Consultants will be reviewed using the current Quarterly Business Review process. Directors of Operations will be responsible for sending Human Resources a copy of the 4th QTR “Quarterly Business Review Area Financial Summary Form” along with the 4th QTR “Area Supervisor or Franchise Business Consultant Skill Assessment Ratings Form.” The average skill assessment rating for all four quarters must be included in the assessment summary, accompanied by both the employee’s and the supervisor’s signature.
Pay Grades
Each year, we review the pay grades of each position within the Company to ensure competitiveness and internal equity. Our organization’s policy with regard to compensation is that a pay grade represents the minimum amount the Company will pay for a position, as well as the maximum amount the company will pay for a position. No employee may earn below the minimum of his or her pay grade or above the maximum of his or her pay grade, without authorization from the respective Vice President of his or her department or the Chief Concept Officer.
Employees who are currently above the maximum of their pay grade are not eligible to receive a merit increase following their next performance evaluation; nevertheless, they should be evaluated and receive feedback on their performance.
Do not use the performance evaluation process to award market adjustments. In other words, do not inflate an individual’s performance evaluation score to allow a greater merit increase.
Merit Increase Guidelines
The Company routinely benchmarks its compensation practices versus its competitors in light of current and anticipated social and economic conditions. Annual merit increase guidelines are determined accordingly and communicated by the Human Resources department.
Individuals who were employed or in position for more than six (6) months as of the designated performance evaluation date are eligible for a full merit increase (unless their current rate of pay exceeds the maximum of their pay grade).
Individuals who were employed or in position for more than 90 days but less than six (6) months as of the designated performance evaluation date should be reviewed and will be eligible for ½ of the recommended merit increase (unless their current rate of pay exceeds the maximum of their pay grade).