I was wondering why the employer has to hike his employee’s salary on a regular basis. Why can’t he just be paid the same amount all his life? Will that be such a big issue? Why does an employee need a salary hike year after year? If the employee is not paid any hike this year what would happen to him? I guess it is the economy that plays a dominant role in the salary hikes rather than the performance of an employee.
Salary hikes are given to the employees so that he has got enough spending power and he goes on spending money and thereby boosting the economy. A economy is said to be good only when people spend lavishly and the prices of the goods are in common man’s reach. It shows the sign of prosperity. Most of the companies today are laying off their employees as a measure of cost cutting. Continue reading