Our annual salary reviews are upcoming and I've been told by my manager that it will be a 2-3% increase across the board with a few additional percent for high performers.
I have a member in my team which I believe based on previous conversations is expecting a much higher percentage than that (closer to 20% which would certainly be in the top 1% of employee increases) . He is not a bad employee but is not my best and is already paid fairly based on market value for the job they were employed to do. I believe him to be much smarter than the job he's in however he has no drive to do more when opportunities arise even after bringing up in quarterly reviews he would like extra work.
I'm preempting him being annoyed about this. How can I handle it best when pay reviews really are out of my hands?
I don't want to lose this employee but it wouldn't be the end of the world.