Glad you talked to the company and got it straightened out.
I hope you handled it tactfully. Always take the high road on this stuff.
There are a couple points employers need to consider (and don't go pointing this out to your employers, that's not tactful, but keep it in mind judging employers or when you become an employer).
First, there's never a good reason to lie to employees. Shoot straight with them. If you can't give out any raises or reviews despite what the Handbook says, just tell them the situation. Man up about it. They will appreciate it, and if you have always treated them fairly they are likely to put up with a lot in order to stay with you. They know the economy is bad, you don't have to sneak around about it. They see how busy the shop is, you can't exactly hide that stuff and it's silly to try.
Second, in matters of compensation, most employers think about it totally wrong. They think if they delay and put you off they're going to save money. If you do something proactive for your employees, it takes a lot less to make them happy. If you wait until they're very unhappy, it takes a lot more because you've given them a good reason to be unhappy. It is therefore often cheaper in the long run just to do the right thing by them, particularly if you factor in any value on their increased loyalty and desire to be productive for you.
Shooting straight with people, treating them like adults, and being fair are what's needed to get the employee to quit feeling like an employee who will do just enough to get by and start feeling like a team member who will help you get your business to succeed.
I didn't invent this stuff. There are companies and managers who know how to do it right. Be on the lookout for them. It's a better deal for all concerned.
Sincerely,
BW
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