Frequent Smaller Pay Increases For Employees

Frequent smaller pay raises should be more motivational for employees versus larger annual pay raises. Receiving a large pay raise on an annual basis provides an emotional increase (and an increased level of motivation) by the employee during the period leading up to the pay raise that is internally perceived as adequate by the employee at their discretion. This could be the entire year as they look forward to the raise or as little as the month prior to the raise. Each employee will individually determine their own time period and their motivation and productivity will reflect the level of each that they feel is needed to achieve the desired or expected increase in pay that corresponds to those levels. After the pay raise, the individual employee will also determine how long their motivation and productivity will last based on their evaluation of the amount of the raise according to their duties and responsibilities that equate to the raise given. Annual raises typically motivate employees for one to two months prior to a raise and last from one to two months after the raise. The remaining eight to ten months revert back to the same amount of motivation and

Creating a more frequent opportunity for advancement creates a more frequent compliance towards obtaining the goal. Increases that are more frequent, yet smaller than a larger annual amount, provide more opportunities for the employee to feel a sense of value to the company. The more valuable the employee feels they have increases their motivation and productivity. In the long run, smaller increases in pay increase the overall productivity of the company. A sensible company should realize that the increased productivity it enjoys are due, in large part, from the increased perceived value that the employee feels that they contribute to the