Jason
Pay rises are nOt compulsory for anyone thats the first misconception people have
The best thing to do is along the following lines
1. Have a Perf related process where every year they have a performance review
2. Decide on the ratings ie SBT BT OT AT SAT
Significany Below Target
Below Target
On Target
Above Target
Sig Above Target
Set each employee targtes whether they be volumes , Quality training etc
Then at the end of each year decide how much extra yoiu have in your "kitty" for pay rises and then work out what each rating gets
ie OT 3.5% similar to the RPi
AT may get 6% and SAT gets 9%
Therefore you are rewarding the productiive people
BT & SBT get nothing other than a 2nd review 6mths later in line with the smae policy
What you will find is some people will really push for the extra
Think about bonus's you pay too has that to will have impact if you pay it as a % of salary eg each year your bonus payouut will increase
HTH
Nige