When is a salary review warranted?
There are multiple occasions which will dictate when a salary review is expected outside of inflation changes; including when a person progresses to a new job role. In the case of promotions or asking an employee to take on more responsibility, they can reasonably expect to have a salary review – and a pay increase to follow.
Another scenario in which employees may expect a pay review is following a notable project or achievement. It could be that a big deal has been closed or a retainer has been increased, or at the end of a particularly busy business season that required extra resource and a show of leadership and initiative. If there has been a job well done, an employee may reasonably expect their pay to be increased.
Changes in qualifications may also lead employees to expect a salary review. Some employers invest in their employee’s careers and send them on courses to improve their knowledge. Upon completion of a new course, such as obtaining a master’s degree through work, an employee may then expect their salary to be reviewed. Typically, more qualifications correlate to more responsibility, but this is not always the case.
Reward strategies aim to keep employees satisfied and morale up, with the hope of producing a more passionate, productive, and loyal team. For this reason, many employees expect to get a pay rise at least once a year when they have shown their loyalty to the company and their role.
Finally, older employees may expect a pay rise when new members join the team, even if they are joining in the same capacity. This is because many industries are candidate driven, forcing employers to be competitive in order to attract the best employees to their team. This often means offering a higher salary which could well exceed that of existing team members. Paired with the training aspect involved in hiring new employees, this is a time when many employees may expect a slight increase in their pay.