It varies based on the type of position. For more repetitive hourly jobs that are more tied to staffing a station during certain hours, think cashiers at a retail store, a movie theater attendant, etc., I would recommend a tiered hourly compensation model that allows individuals to increase their hourly rate as they gain additional skills and eventually reach a point of "top pay". That pay scale should be reviewed at least annually against the market and adjusted accordingly with people at each level receiving the COLA adjustment when the adjustment to the pay scale is made. For more professional positions, I recommend establishing pay grades, and carefully assigning each role into a proper grade based on external and internal equity considerations. I typically have ranges of either 15 or 20% above and below the midpoint. These positions are more commonly evaluated based on performance with an increase based on an established table that takes into account performance level and position in band (compa-ratio). If anyone wants more info or discuss it further, I would be happy to do so.