Performance Review and Appraisal Policy
Scope
This Policy is applicable to all employees and trainees engaged with the Company (hereinafter collectively referred to as “Employees” solely for the purposes of this Policy).
Authority Concerned
For any questions or clarifications pertaining to this Policy, Employees are advised to contact the Human Resources (HR) Team.
Conflict
In the event of any inconsistency between this Policy and the terms outlined in an Employee’s employment or engagement agreement, the provisions of the agreement shall take precedence.
Objective
The objective of this Policy is to establish a structured and transparent approach to the performance review and appraisal process within the Company. It aims to:
- Facilitate effective communication between Employees and their respective managers or supervisors.
- Ensure clarity regarding performance expectations and evaluation criteria.
- Encourage active participation by Employees in setting goals and discussing career development.
- Provide ongoing and constructive feedback to support professional growth and alignment with organizational objectives.
Performance evaluations shall be based on individual contributions to functional or organizational goals, achievement of pre-defined targets, feedback received, and a comprehensive assessment of overall performance.
Eligibility for Appraisals
Employees may be considered for appraisals upon completion of one year of continuous service, subject to both individual and organizational performance. Appraisals are conducted at the sole discretion of the Company and are not guaranteed.
The Company also reserves the right to review and revise compensation structures to ensure alignment with internal pay parity and prevailing market benchmarks.
Job Performance
Performance Assessment
All Employees shall be assessed on their job performance through a combination of ongoing feedback and a formal review process, typically conducted annually. Performance assessments may impact career progression, access to development opportunities, and applicable rewards or benefits.
Employees are encouraged to seek clarity from their reporting managers or the HR Team in case of any questions related to the assessment process.
Performance Rating Scale
The following performance rating scale shall be used to evaluate Employee performance:
- Bad
- Below Average
- Average
- Good
- Excellent
Performance ratings shall be communicated during review discussions. Managers shall provide constructive feedback and guidance during these sessions. Employees are encouraged to engage meaningfully in the review process and align with the goals set by the Company.
Performance Improvement Plan (PIP)
Employees whose performance falls below the minimum expected standards may be placed on a Performance Improvement Plan (PIP). The objective of the PIP is to provide structured support and a defined timeline to help the Employee improve performance.
General Guidelines:
- The PIP shall be initiated by the Employee’s manager, with clear documentation of performance gaps, required improvements, timelines, and measurable objectives.
- The standard PIP duration shall be thirty (30) days.
- A mid-term review may be conducted around the fifteenth (15th) day to evaluate progress.
- In exceptional cases, the PIP duration may be extended beyond 30 days with prior approval from the Chief Executive Officer (CEO).
- Employees shall be reasonably informed about their performance during the PIP period.
- If, at the end of the PIP, there is insufficient improvement in performance, the Company reserves the right to take appropriate action, including but not limited to termination of employment.
Salary Increments, Bonuses, and Promotions
Salary increments, bonuses, and promotions are not automatic and shall be based on performance, organizational priorities, and business needs. These are awarded solely at the discretion of the Company and are subject to periodic review and internal policies.
A positive performance review does not automatically entitle an Employee to a salary increase or promotion unless explicitly communicated by the Company. Any exception to this policy or out-of-cycle increment must receive prior written approval from the designated authority.
CTC Revisions
In cases where a revision in Cost to Company (CTC) is approved following the completion of the performance review process, the effective date of the revised compensation shall be determined based on the Employee’s date of joining (DOJ) as follows:
- If the Employee’s DOJ falls on or before the 15th of the month, the revised CTC shall be effective from the 1st day of the same month.
- If the Employee’s DOJ falls after the 15th of the month, the revised CTC shall be effective from the 1st day of the subsequent month.
This approach ensures consistency and fairness in the implementation of compensation changes. The performance management framework at the Company is intended to foster transparency, deliver constructive feedback, and align rewards with individual performance and the Company’s strategic goals
Special Circumstances and Exceptions
Any deviation from this Policy must be approved in advance by the designated authority within the Company.
Confidentiality and Non-Compliance
All information discussed during performance reviews is confidential. Any unauthorized disclosure may result in disciplinary action, up to and including termination of employment.
Review and Amendment
The Company reserves the right to revise this Policy from time to time to reflect changes in applicable laws or internal business requirements. Employees shall be notified in a timely manner of any material amendments.
