Annual Appraisals vs. Anniversary Increments: Which Offers Better ROI and Employee Satisfaction?

I would like to know the benefits and return on investment of conducting annual appraisals and giving increments once a year, rather than based on when an individual completes their first year with the company. I have observed many companies implementing salary increments according to the anniversary of an individual's time with the company. Please share your insights and suggestions.

Thanks

Many companies, as you mentioned above, that undertake salary increments according to the appointment date of the employees are most often SMEs. In large organizations, salary increments are typically scheduled at fixed periods, such as April or January.

Reasons for individual increments

The obvious reason that I can see for taking up individual increments is:

1. It suits the employer/owner as it doesn't stress their budget/funds flow.
2. Employees tend to compare their increments with others. In such cases, they can't compare, so it doesn't affect their work or responsibilities, which is beneficial to the organization.