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It鈥檚 a vicious cycle: Companies cut back on promotions to try to minimize big salary loads, but more promotions keep employees around longer. According to a piece at incentiveandmotivation.com, the answer could be more frequent, but smaller, promotions.

Desautels Professor Alain Pinsonneault points to recent research indicating that frequent little promotions help to minimize turnover at IT firms. Also, because the wage increases are minor, the dollar impact of a promotion is not dramatic.

Companies are also moving towards spreading the traditional Christmas bonus out over the year for the same reason.