Most of us are lucky if we get an annual raise, but some people are nabbing four or more raises per year. Say what?
The Wall Street Journal reports that some companies are giving smaller raises more often to increase employee morale and loyalty, and the reasoning behind it is pretty sound: If you’re unhappy, for instance, with a starting salary or the first raise you get, you’re more likely to start looking for a job somewhere else if you can’t get an increase until next year. But if you know that in a few months you’ll get a bump in your pay, you’re more likely to stick it out.
Of course, as with anything else, getting a raise more than once a year has a few drawbacks. For one, it gives payroll and human resources departments a lot more work than they’re currently accustomed to dealing with. Secondly, it means more of those annoying annual reviews and self-appraisals, which are always awkward to fill out. Third, as some employees advance, their rate of raises may level off to just one annually, which can bore and frustrate workers used to more frequent incentives.
Still, only about five percent of American companies use the multiple-raise-per-year model, so unfortunately or fortunately, depending on how you view it, we don’t have to worry about all that just yet.