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We're missing one crucial piece of information: Is Bob being paid at his market value?

If so, all the communication that is necessary is: "You're a solid employee, we love you, but you're being paid at market, and from here on out you can't expect much more than a cost of living increase".

If not, what is the plan to get him there? Inflation plus 0.5% is a lousy increase for good employees making less than market, and all the great communication in the world won't change that.

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