Establish Parameters For Wage Increases Managers and supervisors should be given guidelines for wage increases. They should understand clearly what the upper limits for increases will be in any given review period. By doing this, managers can have leeway in terms of giving increases. They will be able to use their discretion without fear that they are disrupting the budget. Internal equity simply means that employees should be paid in accordance with the positions they hold.
Some positions naturally command a higher wage than others.
It is critical that people be paid for what they do, not for who they are. So many employees across most business have never been held accountable for meeting expectations that force them to stretch on a daily basis. When management attempts to increase the level of accountability there is often resentment on the part of employees. Some will pout, others will lash out, while still more will begin thinking about leaving for another job. This is especially true in businesses that have historically had a low performance, low accountability culture.