This is a subject that is hard for me to talk about because it brings up some bitter memories.
Increment Distribution Inequality happens when the increment budget is small, but the distribution is not strategic. So people end up feeling unfairly treated.
I’m sure you’ve seen this before.
Some got 20%, some get 2%, some get RM2,000, some get RM20.
And somehow HR gets blamed for all of it.
From my experience, increment inequality normally comes from:
• Managers rating everyone “average” because they want to avoid conflict. (true story)
• Managers giving higher increments to their favourites. (super true story)
• Tenured staff being overlooked because “they’re not going anywhere.” (also another sad true story)
So many reasons lah!
But in the end? Nobody is happy.
Not the performers, not the loyal ones, not HR, not the business.
Well, perhaps the favourited ones. 🙄 (bitter, remember?)
A strong system focuses on performance differentiation, internal parity, market competitiveness, and structured increment guidelines.
Companies need to be fair by being transparent, clear, and consistent, if that makes sense.
And if you want engagement? Then pay people in a way that makes sense.
