Answer – C
Employees should be rewarded for performance. Yet, employees generally like to know “when” they may earn a bump in pay, so best if you outline performance objectives and a time frame for meeting them in order to achieve a raise. If you choose to give everyone an across the board percentage raise, call it a cost of living adjustment instead of a raise. Raises should be tied to increased responsibilities or above average performance, not simply for longevity. Don’t try to be “fair” to everyone. Be sure to reward your top performers so that they don’t jump ship!
