Activates April 1, 2022, with the first updated salary appraisal being May 1, 2022Pending updates, see July 2023 DRAFTS.
Salary appraisals occur during the team member’s anniversary month AKA join month. For example, Bob joined Axelerant on February 3, 2020; a salary appraisal happens every February.
As relevant, out-of-cycle salary adjustments may occur for promotion, preemptive updates, radical salary range updates, etc. When an out-of-cycle adjustment happens, the following salary appraisal will be prorated or manually adjusted with peer fairness.
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Each role typically has market-adjusted https://axelerant.atlassian.net/wiki/spaces/OA/pages/175276146/Compensation#Salary-Ranges, updated every January, that might be regionally specific. Further, each role position relates to a Career Path level with an assigned base appraisal percentage reflecting external peer-level increases.
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Role Level | Base Appraisal % |
|---|---|
L1 | 8% |
L2 | 7% |
L3 | 6% |
L4 | 5% |
L5 | 4% |
L6 | 3% |
L7 | 2% |
M1 | 4% |
M2+ | 2% |
Appraisal raise percentages are determined based on Axelerant’s financial health and priorities during the last quarter of each fiscal year.
Role Tiers
Role tiers are meant to recognize the demonstrated capability level of a role. They modify the average salary value for a suggested salary—more at Role Tiers.
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Appraisal Percentage Modifiers
As Axelerant recognizes that not every team member contributes the same, so the salary appraisal formula modifies the appraisal percentage based on an aggregated performance expectations score. The performance expectations score is built upon the individual expectations calculated separately and then summed into a single weighted number. Examples are below.
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No Measurement Data Exists
When measurement data doesn’t exist for whatever reasondoesn't exist, that metric will be treated as 70% for the relevant period. It’s It's the responsibility of all relevant stakeholders to ensure that performance expectation measurements are feasible to provide accurate assessments.
Salary Range Outliers
When a team member’s member's salary is less than their role’s role's salary range minimum, it’s it's set to that amount.
When a team member’s member's salary exceeds their role’s role's range, we will limit the raise to the maximum salary range. Only COLA adjustments or Salary Appraisal Overrides will break this limitation.
This salary cap aligns with Axelerant’s Axelerant's https://axelerant.atlassian.net/wiki/spaces/OA/pages/1447493744/Principles+and+Values#Continuous-Improvement trait for https://axelerant.atlassian.net/wiki/spaces/OA/pages/1447493744/Principles+and+Values#Enthusiasm while ensuring peer pay fairness. E.g., respecting a team member’s member's desire not to pursue a promotion or overcoming a misaligned value to Axelerant.
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At the discretion of a team member’s member's appraisal owner, they may override the systematically suggested salary appraisal to account for corrective situations. When the appraisal owner isn’t isn't sure, they may reach out to contact the @performance-management-team via Slack for assistance.
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L2, with an Aggregated Performance Expectations Score of 93%.
COLA 4% plus L2 7% * ≥90% 100% =
4% + (7*100/100)% =
4% + 7% =
11% salary appraisal adjustment
L4, with an Aggregated Performance Expectations Score of 67%.
COLA 4% plus L4 5% * ≥60% 15% =
4% + (5*15/100)% =
4% + 0.75% =
4.75% salary appraisal adjustment
L6, with an Aggregated Performance Expectations Score of 113%.
COLA 4% plus L6 3% * ≥100% 110% =
4% + (3*110/100)% =
4% + 3.3% =
7.3% salary appraisal adjustment
What happens to appraisals when a team member resigns/or is serving a notice period?
If a team member has resigned from their position with Axelerant and is serving their notice period, they are not eligible for performance appraisals.
However, any performance-linked bonuses for any team member during their resignation period will be paid based on their present KPI and agreed-upon payout criteria.
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