Pay increases aren’t one-size-fits-all. Employers use several types depending on their goals, budget, and workforce needs, and these differences matter more than many organizations realize. A merit increase signals something very different to an employee than a standardized across-the-board adjustment, even if the dollar amounts are similar. Understanding the distinctions helps organizational leaders make more consistent, defensible compensation decisions and have productive conversations with employees when it’s time for raises.
Each year, employers make decisions about how they want to approach annual increases. Click on the following link to read the full article, which provides an overview of the most common types of raises and employer guidance on how to communicate them effectively: Different Types of Raises and How to Communicate Them With Employees.
