Going for that annual review was like going to a dentist if I had cavities. You know it would be painful because you’d hear how awful you were all year, so they could cut back on whatever salary increase you thought you should get.
From a plan provider standpoint, I understand the need to reduce salaries and minimize expenses. The problem is that employees have feelings too. That $5,000 you save in a salary increase might be the impetus for someone to leave. The problem is that it will end up costing you more than $5,000.
I once said that when I was the head attorney at a Third-Party Administration firm, it would take two people to replace me. It took three. Those two additional employees cost my old bosses a lot more than the $5,000 raise I didn’t get.
