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Employees are given a raise in their employment for various of reasons. Yet, the main reason why is due to their performances. Here is a list for further reasons in order for you to be guided:

  • When the employee is promoted or demoted from the current position
  • when the employment status of the employee changes
  • When there is a need for the employee to be transferred to other department for some reason
  • When there are some additional pay such as benefits, incentives, overtimes insurances, bonuses, workers’ compensation, or so

Employee Salary Increase Form

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Employee Payroll Change Form

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The list above shows you the most common reasons why an employee receives an increase of amount to his or her salary. The first on the list, which is the promotion, is basically due to the employee’s good performance at work. On the other hand, there will be some payroll deductions when employees are demoted from their position for having a poor performance. The second one is technically pertained to when the employee is regularized. Or when he or she has passed the probationary period, as the management evaluates his probation review. The third on the list is about transferring the employee to the other department.

This employee to be transferred (could be in replacement of a terminated employee) is transferred for two possible reasons: it is either he or she has the sufficient skills that would perfectly fit to the other department, or his or her performance evaluation is insufficient to his or her current position. That is why, there is a need to transfer this employee to where his or her skills and capabilities fit perfectly. The possible reason why this usually happens is because the business management had designated this particular employee to a wrong position, in which his or her job preferences and qualifications do not meet.

The fourth on the list says that employee’s pay increases when there are benefits, incentives, insurances, bonuses, so on and so forth. These pay increases are given to the individual employee as to repay their offered services to the company, such as the overtime hours which is tracked using the employee time sheets. These are due to their hard work. Therefore, these additional pay are because of their performances. The incentives or bonuses are given when they reach the target quota, or even way beyond to what was given by the company. And when these pay increases are entitled to the employees, adjustments are needed to be made in the individual employee payroll forms.

Position/Salary Change Request

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Payroll Adjustment Form

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Fillable Payroll Change Form

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Nevertheless, you have to remember that employees deserve to get or receive what they have worked hard for. If you, as the manager, would pay your employees the right amount that they should be receiving, you will get them to stay and work for your company. Otherwise, you will be needing to recruit regularly for more employees. And that would cost you too much due to the fact that various of trainings are needed to be conducted over and over in order for you to train your employees. Therefore, you have to ensure that all is fair, most especially when it comes to employee salary reviews.

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