The Problem – Inconsistent application of salary guidelines by different managers
The company salary planning guidelines were so loose that they provided very little direction to managers in establishing increases. As a result, the size of increases were often dependent on who you worked for and pay increases were inconsistent and not always commensurate with performance.
The Solution – New salary guidelines that tied pay to performance
I introduced salary planning guidelines that made increases a function of performance, on a scale from 1 to 4, and current salary in relation to the mid-point for the position. Managers and employees alike responded very well to this because it gave them clear direction.