Establishing the salary system according to performance evaluation results and an application in the defense industry sector

The ability of today?s companies to stand against the ongoin cruel competition is now not only depending on the financial power but also being significantly affected by the human resources. For the companies who experiences difficulties to find quallified workforce, it is becoming even harder for keeping hold of those personnel they have. The companies are challanged by the loss of their quallified employees and workload as a result of recruitment of those employees, who they invested for their training and expected serious work potential after that, by the rival companies.When all these are considered, human resources departments are trying to engage different efforts for both not to lose their trained employee to their rivals and recruit employees appropriate for the job. They are trying to hold their employees by supporting them with trainings and social benefits and by providing them job satisfaction. They are working for sustaining the loyalty of the employees, qualification of whom they assessed by applying performance evaluation with salary increases at the rate of their qualification and company?s expectations. Employee circulation rate being low provides information about the employees loyalty to the company, employee satisfaction and motivations.In my study, those subjects are detailed, the employees are evaluated objectively with performance evaluation system, modifications have been made on their salary corresponding to the pay grade according to their qualification, and later on satisfactory outcomes are obtained when results of the employee satisfaction questionaire being applied with employees turnover rates are considered.