Employee Anniversary Date vs. Common Review Date
An individual’s salary in very important to them, how much and employee makes can be determinant to a company’s bottom line profit. However whether you are the employee or employer you need to figure out what is best for you in regards to salary increases. There are two widely used pay adjustments strategies that are used. These two pay adjustments strategies are commonly known as an “Employees Anniversary Date” and “A Common Review Date”. Both strategies have pros and cons to them also some mangers prefer one strategy while employees prefer the other strategy.
The two strategies that employers use to give merit increase vary significantly. The practices where an employee receives their merit increase one year from their higher date, is referred to as the Employee Anniversary Date. However the theory where the employee receives a merit increase at the same time as everyone else is known as a “Common Review Date”. For example if you are hired on March 25, 2013 and you receive your review and your increase on December 15, 2013 along with everyone else in the company, this would be known as your common review date; however if you had to wait till March 25, 2014 for your review and your increase it would be known as your anniversary date.
Merit increases based on using an employee’s anniversary date has both pros and cons. Some of the pros using and employee’s anniversary date could be that it, increase employee morale by giving them “individualized treatment” (Henderson, 2006, p. 485). It also spreads the work for management thru out the year and allows them to “put more thought into each performance appraisal” (Dance, 2010). This type of merit increase also makes more sense because it gives the same “treatment for all employees by making everyone wait the same amount of time regardless if it your