[Alberta's Child]

As someone who has been in both seats on this issue (as an employee and a manager), my opinion is that an "annual raise" is one of the dumbest and least effective rites in the business world.

If an employee's productivity improves by 10% then he/she deserves a 10% raise. If the employee's productivity is the same as it was last year, then he/she deserved no raise whatsoever.

Believe me -- there are very few things more useless in the business world than an employee with 20 years of experience who knows very little more than he or she did when they had 0 years of experience.

[varyouga]

Irrelevant if their productivity increased. In a market economy, you must pay what the market does for your employee. Otherwise they can leave at any moment.

It can be devastating for a firm to lose a key member in my line of work. Yet so many don’t give a damn about keeping up with salaries

[ro_dreaming]

Is it possible for an employee to be 10% more effective yearly? For how long, 3 years? 10 years? It’s the same as interest, really.

I have been employed at the same place for almost 11 years. I have never had a bad review. I have never been written up. My reviwe should be based annually on a standard, and not based on my previous review, otherwise at some point I will never meet expectations, as they will be exponentially higher for me than everyone else in the same job.