A promotional increase
• A promotion is the advancement of an employee to a position that is evaluated at a higher grade level than the position to which the employee is currently assigned.
• An employee who is being promoted can receive a promotional increase at the time of the promotion aligned to the appropriate point in the new salary range, taking into consideration performance, qualifications, and market information.
• Promotion is usually based on availability of opportunities and preparedness of employees to advance.
A merit increase
• Merit increases are awarded to recognize an employees contribution and to compensate them for their high level of performance.
• Performance is the key factor in awarding a merit increase and can be the factor that moves a person through the salary scale towards the midpoint or higher. Merit increases can be awarded on an employees anniversary date following a formal performance review or at the beginning of a calendar year, depending on your compensation structure and philosophy.
Bonus payments
Bonus pay is compensation over and above the amount of pay specified as wages or salary and it is only distributed as the organization is able to pay or as outlined in an employment contract.
Bonus pay is used by many organizations to improve employee morale, motivation, and productivity or as a thank you to employees who achieve a significant goal.