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<i>Dear Workforce</i> How Do We Change COLA Dates Without Demoralizing People?

May 4, 2011
Employees at our company are accustomed to receiving an annual cost-of-living adjustment, or COLA, increase. However, we are implementing a new system linking pay to performance, and those employees will have to meet their yearly goals to be entitled to the COLA. They will also be awarded a bonus for exceeding goals. Currently, COLAs are awarded throughout the year based on each employee's date of hire. In the new system, we wish to have everyone eligible for the pay increases at the same time, in April. How do we change the timing without de-motivating those who would have been eligible for an increase under the old system, but now must wait anywhere from one to 12 months to become eligible?
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