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What would be the best way to evaluate employees when everyone has done exceptional work?

You’re the owner of a 25-employee company that has just had a fantastic year. Everyone pulled together and worked hard to achieve the boost in company profits. Unfortunately, you need to sink most of those profits into paying your suppliers. All you can afford to give your workers is a 3 per cent pay raise across the board. At appraisal time, how would you communicate praise for a job well done coupled with your very limited ability to reward such outstanding performance? Now assume you can afford to hand out some handsome bonuses or raises. What would be the best way to evaluate employees when everyone has done exceptional work?

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