How is the performance review related to pay?
It isn't. The performance review should not be related to pay decisions.
It is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.
It helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.
It provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.
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