This is a story I heard from an acquaintance, and I was wondering how I would handle it if I were the boss in this situation.
The organization used to have a policy of giving employees a salary increase of X for having a relevant master's degree. This was applicable to both new hires and to current staff. Thus, a new hire with a master's degree would earn X more than she otherwise would, and if a current employee gained a master's degree during her employment her salary would increase by X. This policy has recently changed, and now employees are no longer given X for having a master's degree. Employees that already have a master's degree will have X phased out of their salary over a period of time.
Jane Doe is a current employee at this organization who will soon finish her master's degree. She did not enroll in the masters degree for this organization, nor did she enroll in the degree for the purpose of getting an extra X per year. However, she is annoyed that she has put in time for this degree with the expectation of earning and extra X, and now that she is about to finish the degree she won't get any salary adjustment for it.
Any thoughts or recommendations as to what a good response would be from the organization? My initial thoughts are that this organization doesn't have a well-thought out compensation strategy, but I don't know much beyond what I've written here. I figured that some of the smart people here might have some good insights to share.