Annual salary dialogue and salary determination. The employee’s salary is determined at an annual salary dialogue between the leader and the employee based on the annual final performance assessment. This assessment is based on the employee’s target fulfilment relative to WHAT (fulfilment in terms of KPIs/goals and accountabilities of the job description) and HOW (behaviour and conduct, including compliance with internal values and principles, as well as feedback from relevant stakeholders). The overall conclusion from the performance assessment provides a key element for the subsequent salary determination at the salary dialogue. Accordingly, the total performance conclusion according to Appendix 1 is assessed in relation to the employee’s current salary by using the salary determination table in Appendix 2. The salary determination table specifies the salary increase that the employee will receive. Although the salary increase ranges stated (in relation to the local salary pool) are indicative, the lower limit of the salary increase range must be respected. However, special situations may arise where it is necessary to deviate from the indicative salary increase ranges, including that the individual leader must keep within their salary pool budget. The leader and the employee make their views known in terms of own performance and salary determination and efforts are made to arrive at a common conclusion. The parties prepare and update on a current basis the guidelines for the practical use of the salary model.
