Mark My Worth: Rulebook on how to choose one high performer over another and retain both

With a limited budget and a slowing economy, bosses are staring at a classic corporate dilemma—how to reward top talent without alienating the rest.

The "meets expectations" crowd is large, the high performers fewer but critical. Retaining one could mean losing another. So, how does the boss choose between two stars when he can’t afford to lose either?

Hence, dear bosses - Mark My Worth presents the rulebook on how to prefer one high potential over another and retain both.

Batch parity principle

Managers recommend that high performers of a similar age group are promoted together. The initial levels of promotion are in tandem and this prevents attrition at the junior to middle order.

Hence, it is common to see campus recruits getting a senior designation around the same time. But, the similarity ends there. At the mid to senior levels, promotions become far more selective. Even top performers with similar experience and tenure can’t all be elevated together. 

Budget constraints tighten, and the final say often lies with a promotions committee. Managers may nominate their best candidates, but when the results are announced, they often defer responsibility—explaining that while they recommended the names, the final call was made by the higher-ups.

Short term gain but a stop gap arrangement 

According to a senior partner at one of the Big Four firms, many managers fall into the trap of "short-termism"—prioritising immediate business needs over long-term talent strategy.

Managers tend to reward those whose work feels most urgent or visible at the moment, the partner explained. 

Also read: Big paydays for top talent in tech, consumer, lifesciences even as overall salary hikes moderate

"They focus on the risks that will occur if a performer of an integral team leaves at the cost of ignoring another high potential in a different team. The manager may not realise that the other teams can also have top talent and the risks are not that high".

Midterm review to the rescue

A boss may resort to the mid-term review to soothe ruffled feathers and egos in the team. Typically, companies can accommodate select increments and hikes in the middle of the year and the manager then needs to ensure that the high performers who were glanced over this appraisal season are taken care of in the next six months.

Also read: Appraisal and the art of Atmanirbhar Branding

A special project for the special employee

Top performers typically receive 1.7x to 1.9x of the median hike offered by a firm. But when such a pay differential isn't feasible, offering meaningful non-monetary incentives—like a high-impact project, a mentorship opportunity, or a short-term leadership course—can yield impressive results.

These opportunities often resonate with ambitious employees, who may value long-term growth over immediate financial reward. In many cases, they’ll “take the bait" not just for the recognition, but because it aligns with their career goals.

The appraisal maze may be tricky, but with smart moves and steady vision, retaining your best is possible. All the best this season!

 

Read the other stories in our special series here:

Introducing “Mark My Worth": A new series to help you navigate appraisal season

Part 1: Rulebook on how to choose one high performer over another and retain both

Part 3: How to deal with the dreaded Meets Expectations rating

Part 4: With a productivity uptick, it’s time to ask for that promotion