Failure to raise a salary in line with inflation is a pay cut.

If we are going to be frank, the vast majority of people in the workforce are doing their jobs primarily for the financial compensation. They want the security of seeing at least a couple of zeroes in their bank account, and ideally more.

It follows, then, that one of the best motivators an employer can give to reward and retain a good employee is to give them more money. Few workers truly believe that they are being paid enough, and they are more likely to continue going above and beyond at their job if they feel like it is going to be able to fund their lifestyle.

Despite this being a relatively straightforward remedy to many workplace qualms, a lot of companies are reluctant to give people a raise. After all, higher salaries for employees do not automatically translate into higher revenue. More often than not, fairer pay feels like an expense too far. Only when somebody games the office politics or truly gives them something to think about will they reach into their pockets and look for some of that extra compensation that they are seeking.