When Should I Give Employees a Raise?
Employees who work hard, stay late, and come in early aren’t going to continue going above and beyond forever—unless you find ways to sweeten their deal. If you want to know how to keep your best performing their best, you must learn when it’s time to tweak their take-home pay.
Measure Length of Employment
The longer an employee works for your company, the more money you’ll save in turnover fees like training, onboarding, and benefit enrollment. These long-term savings make your senior employees top candidates for wage raises. So, when deciding when and how much of a raise to give to certain staff members, weigh their tenure in your decision. To consistently reward the ones that remain, consider setting company milestone raises at five, ten, and fifteen years of employment.
Analyze Employee Performance
If an employee is exceeding in every part of their position, making an impact in other areas of your business, and adding undeniable value to your company, they undoubtedly deserve some compensation. To make sure that your assessment is fair for each worker, design a performance evaluation sheet and determine how often you want to evaluate your employees. Whether you use it annually or every sixth months, you can use performance evaluation to score your staff in each section of their position and even allocate a raise percentage to their performance.
Teach Employees New Skills
Rather than hiring a specialist to cover a new area of business, you can train one of your existing employees and increase their wages to compensate for the new skills. Even the combined cost of training and a wage increase is an often-stronger payroll solution than hiring a new employee altogether. To get the best estimate of how much their new skill is worth, check the average salaries for individuals in similar positions and consider raising your employee’s wages to close the gap.
Determine the Alternatives to Raises
Money matters, but it isn’t everything. If you aren’t able to dedicate the amount that you feel is fair to employee raises, consider showing your appreciation in other ways. For example, employees often weigh company benefits over salary when considering their job satisfaction, and they are a more affordable investment than individual raises. Likewise, bonuses are a short-term boost in income that can make your employees feel valued without adding long-term expenses.
Payroll Solutions for Your Business
As your business grows, your employees do too—which makes it even harder to come up with ways to keep every employee satisfied. If you’re looking for smart strategies to keep everyone on your payroll satisfied, partner with Professional Employer Resources (PER). We can provide a range of payroll solutions to your business and handle any changes in your staff’s wages. For more information on our payroll services, call us today at 888-599-4991.