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Leo Hamel Policy Letter

Annual Raises

We think it works best to consider raises for everyone at the same time once a year. That allows us to weigh the relative contributions of each person to their departments and to the company as a whole.

It also frees us up to do performance reviews on anniversary dates that are not focused on whether or not a raise will be given. This allows the employee and supervisor to concentrate on evaluating performance for its own sake rather than as it is tied to wages.

We propose to determine raises for the coming year by the end of December each year and have the new rates be effective as of the first check date in January. There may be some of us who will not get a raise every January. For example, if you recently received a raise, you may not get another one so soon. If you are on a performance improvement program, or if you were recently hired, it may not be an appropriate time to award a raise.

This does not mean that raises cannot be awarded at other times during the year. Raises for taking on additional responsibility or for completing introductory training period can also be given during the year as appropriate.

Leo Hamel, Founder