How is staff pay raise determined?

My company announced a pay raise and I’m already excited because it will help me save for my personal development project. However, I’m not certain how much to expect. What determines staff pay raises? Daniel

Dear Daniel,
Many employees grumble whenever managers announce salary reviews. The mystery is, however, how much such reviews will impact an employee’s monthly pay. Many companies follow a particular criteria to reviewstaff salaries; some companies tag pay increases to individual employees’ performance or their talent through annual reviews yet others simply increase pay depending on the boss’ ‘choice.’
Under the earlier approaches, managers develop a percentage, which is applied across all employees in their respective performance categories and job grades. If you are in the same cluster but earn differently, your salary rises will be reflected differently. This implies that the increase will increase with an employee’s pay.
You should understand whether the increment is on basic salary or gross. Here, you need to consult your supervisor or human resources manager. Managers should always explain the pay rise and the criteria to help workers make better decisions.
Pay rise is crucial for spurring employees’ morale for better performance.
Considering that effort has been made to increase staff pay, employees should be appreciative. If your company has a system that enforces this regularly, then there are higher chances of growing your monthly salary over time if you keep the engagement.

Isaiah Kitimbo
HR Specialist & Journalist
Monitor Publications Limited
[email protected]