With annual raises potentially on the chopping block at General Electric, C-suites are expected to closely monitor the outcome. Benefit brokers and advisers also might want to do the same to help employer clients tailor total compensation programs to an evolving labor market.

GE executives will decide in the coming months whether to give managers more flexibility in the way they reward employee performance, executives say, rather than be tethered to this longtime HR practice. Their impending review mirrors a trend in Silicon Valley where continuous feedback is replacing traditional annual performance reviews.

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