Inflation kicks the pay spiral into motion. The commercial need to reward performance remains a strong factor. Use your ‘MUST’, ‘SHOULD’ and ‘COULD’ tool to categorise the pay rise drivers.
Inflation and cost of living are strong drivers for the lesser paid. For the top paid they are weak drivers, investors prefer to see performance pay to meet market pressure on competitiveness.
Incentives are best to reward delivered results. Performance from moving through a pay band as experience improves is not the same. Extra duties may, or may not, flag the need to move up pay. Promotion is a new job. Price it accordingly.