Redlining as a method of cost containment

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This is something interesting that I heard today: A manager indicated that one of her employees is being redlined (salary out of bounds of a salary band) and therefore it is much better to lower it and not give out as much merit and/or bonus so that the salary does not get redlined. My question to you therefore is if you've done this before? Heard it before? What will you do (or at least think of) if you hear this.

These questions are important because its mid-year and most companies who are on a fiscal year calendar are doing their performance reviews. Maybe its a good idea to be careful in the words you choose when you are delivering a team member's performance so that one doesn't misconstrue this negatively.

Do tell me your approach when you do your performance reviews and let's compare notes.

photo by sandyandco

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