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Deciding whether to provide an employee with a requested pay increase, outside the regularly scheduled compensation review period, relies on several factors. There isn’t a one-size-fits-all solution. Questions to ask include:
HR professionals should discuss these factors with the employee’s manager to help the manager quantify the pros and cons in this situation. Once a decision has been reached, it should be shared with all relevant decision-makers and ultimately communicated to the employee verbally as well as in writing. Communicating why the raise is or is not granted is important to help the employee understand and accept the decision.
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