The annual salary review process involves managers reviewing each employee's job successes, talents, responsibilities, contributions, and capacities to determine whether to enhance or modify their remuneration.
Example
It is customary for a corporation to have an annual salary review policy. At the conclusion of each year, employees will meet with their boss to review their performance over the previous year. If a person meets their goals and performs well, they may be eligible for a raise or a bonus. In contrast, they may not receive a raise or simply a minor one. This approach ensures that the organization pays salaries that are commensurate with each employee's contributions and abilities.
