The DecisionCompanies are increasingly considering getting rid of annual salary increases. The positive side could be redefining reward systems that motivate employees and attract high-quality workers. Since this could also have a negative side, it could prove to be a demoralizing change that leaves many workers unable to support themselves. There is a decision to be made in every business that will have an effect not only on the business, but also on the employees. ProblemSome managers feel that annual salary increases are so small that they may not motivate workers to stay, or help the company reach its goal. Some managers also believe that the amount granted to a hardworking employee and a moderate worker uses variable remuneration to motivate employees, by guaranteeing an increase, only to employees who work. That being said, the employee who does not meet the company's expectations will not receive a bonus. This could cause them to become stressed and worried over time, wondering if their assessment will meet the requirements. This could lead to instability for many employees. A company is testing To see how things will evolve, General Electric is evaluating annual increases. The company will test various compensation strategies. They decide whether to eliminate scheduled annual raises and grant additional salary increases and incentives at other times. After testing these strategies, the company will have a better idea of ​​what payment to make. Negative of annual termination. As times change, I would recommend companies to also make changes, or at least do a test track. A move like this could actually improve the quality of workers, which could affect the quantity of workers needed. It could also improve company productivity and save on the cost of paying more workers than necessary. On the other hand, making this decision could also harm the company and drive away employees. Giving more work to evaluate each employee can take time and add pressure. For employees, not knowing if their work is up to the standard of the company could scare them. Having stability is a very important need in