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a new laboratory assistant- Anna- has greatly impressed the human resource manager with her work skills and work ethic. she was told that she would have a performance appraisal after both 6 & 12 months. subject to positive performance record, she could expect a salary adjustment. normally, salary increases are 5% p.a. however because of her positive 6 month appraisal, the human resource manager wants to increase her pay by 10%. Cherie being an employee there for 10 years, has only ever had an annual increment of nothing greater than 5%. Cherie feels like she has been treated unfair as she has always been a good worker and have often worked long hours- without compensation. therefore Cherie makes an appointment with the HR manager to discuss my dissatisfaction over Anna's proposed salary increase.
Taking the role of the human resource manager what could be discussed/justified with both cherie and Anna

Discussions with Anna
Since Anna is doing good on her job she will be given what was promised at the time of hiring.  Good performers do get paid better than her peers.

She should be motivated to continue with her doing well in her job.

Discussions with Cherie.

1. Need to hire new employees at different salary levels due to market conditions.
2. Peer salary comparisons are generally encouraged as the outcomes of 2 employees are different
3. Lower salary hikes are more to do with individual performance which appears average
4. Business needs different types of employees and it is wrong to compare with salary of others !
5. If she needs higher salary increments she needs to work extra hard and prove her capabilities.  

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