You will be surprised how far
we'll go for you !


(by Choong Ewe Lee)


Some bosses believe that KPI Leadership is more important than providing employees carrot via Bonus & Salary Increment. Base my experience in  conducting Performance Appraisal Exercises & developing the framework of Bonus/Salary Increment Exercise for the past 50 over real life KPI Projects, it is a bit hard to deny that Bonus/Salary Increment do carry weight to motivate & affect the performance of our employees. While linking to bonus & salary increment, we have also encountered some issues, like Bottom Up Approach of PAR, Challenging Level of KPI among Department and so on. I am glad that that, our clients are patient enough to work with us to solve them from year to year for the past 10 years.
  What is Bottom Up Approach ?
Let’s say, Siti is a good employee. Her salary is $1000, and she is proposed by her supervisor for 20% salary increment (at $200). Is it great ? Of course. But, when it reaches her Manager, would it be still 20% ? No, it is 10%. Would the manager has the final say ? No. The boss will ask. “who is Siti ?”. Siti will end up receiving $50  of salary increment. This is the traditional Salary Increment Exercise (in PAR) that we have experienced since being employed.  
Any impact to this approach ?
Of course. Would Siti be demotivated after knowing her salary increment ?  Would Siti trust the judgement of his immediate supervisor ? (as what he has proposed, was not realized) Would Siti work harder for next year ? All by all, the Bottom Up Approach is really demotivating us. The question is, this Salary Increment Exercise is demotivating us, but we repeat it every year (unless, we are lucky !)
  What is the solution ?
Bonus/Salary Increment is proposed to be a top down approach. We always recommend to the directors (bosses) to approve the salary increment/bonus pool, and distribute based on the KPI & behavioural performance (BPI) of employees. With this, the managers have the say to decide the salary increment/bonus of their subordinates based on the framework of KPI distribution policy. If we follow the KPI & BPI to decide salary increment/bonus, it is really fair ?
  Next Issue:
Fairness is always the hot topics for bonus/salary increment distribution. To reduce unfairness, we will share with you on “How to synchronize the Challenging Level of KPI among departments ?” Please read our next issue.
  Should you have any comments/inputs/topics that wish us to put in this Sharing Session, please feel free to drop
us a mail.
For more information, please visit our Our Articles, Photo Gallery, or our  website @
  Please feel free to forward the above articles to whoever that may find it useful. If they are interested to subscribe the above articles, they are most welcome to email for the above subscription.
Copyright © 2011. Brain Performance Consultants Sdn Bhd (853925-W). All Rights Reserved.