We are writing in response to the editorial titled "2 steps toward reform" (Jan. 4). We agree that a new rule that prohibits state employees whose performance is rated "marginally below standards" from receiving salary increases is a step in the right direction. However, we would like to point out that this step, by itself, may be insufficient to motivate employees to improve performance.

As compensation consultants, we have long recommended that employees whose performance is rated "below standards" not eligible for salary increases. However, along with this recommendation, we strongly suggest that such employees receive an intermittent performance review, they would then be eligible to receive a non-retroactive salary increase.

We would also like to point out that the entire performance evaluation system must be carefully monitored to prevent evaluators from scaling performance ratings up in order to grant employees an increase. This would defeat the whole purpose of the new rule, which is to reward only satisfactory and exemplary performance, while providing motivation to employees to improve substandard performance levels.

The writer is the managing director of Compensation Resources Inc., Upper Saddle River