The DecisionCompanies are increasingly considering eliminating annual salary increases. The upside of this could redefine reward systems that motivate employees and attract high-quality workers. Since it may also have a downside, it could prove to be a demoralizing change that leaves many workers unable to provide for the cost of living. There is a decision to be made in every company that will affect not only the company, but also the employees. Problem There are some leaders who believe that annual salary increases are so small that they do not motivate workers to stay, or help the company reach its goal. Some leaders also believe that the amount given to a hard-working employee and a moderate worker uses variable pay to motivate employees, granting a raise only to employees who put in the work. That said, the employee who does not meet the company's expectations will not receive a bonus. This may cause them to be stressed and worried during periods of time wondering whether their assessment will meet the requirements. This could cause instability for many employees. A Business Test To see how things will go, General Electric Company is considering annual raises. The company will test various compensation strategies. They are deciding whether to eliminate scheduled annual raises in favor of doling out pay raises and additional incentives at other times. After testing these strategies, the company will have a better idea of ​​which payment to accept. Negative of ending the annual As times are changing, I would also advise companies to make changes, or at least give it a test track. A decision like this could actually improve the quality of workers, which could impact the quantity of workers needed. This could improve the company's productivity and also save on the cost of paying more workers than necessary. On the other hand, making this decision could also harm the company and scare employees. Giving more work to evaluate each individual employee can be time-consuming and add pressure. For employees, not knowing whether their work is good enough for the company might scare them. Having stability is a very important need