Sales & Marketing Management

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Combining personal performance outcomes with salary administration


In the Unified Salary Administration Program section, we referred to PPO
being used in conjunction with established salary ranges to determine
appropriate salary increases.


To assist you in relating PPO performance ratings to the salary grid, here are
some suggested guidelines:


Ratings Explanation of Ratings

Outstanding Must greatly exceed every PPO category
Excellent Over 95% of the PPO achieved and the one missed must
be a minor-rated item in the view of the manager
Good 60 to 95% of PPO achieved but performance in the 60%
range should not be accepted on a consistent basis
However, anyone can have a bad year
Fair 45 to 60% of PPO achieved
This is not acceptable performance and counselling and
assisting the employee to try to improve is in order
Marginal Less than 45% of PPO achieved and, again, serious
counselling of the employee is indicated
A formal warning that performance must improve within a
certain time frame should also be issued
Assistance should be offered the employee to try to
improve
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