Pay Raises: Whom, When And How Much To award?
Slogging hard but getting nothing in return might lead to an employee giving in his/her resignation and settling for something else. Pay is one reason which leads to many resignations. A pay which is apt and receives timely raises is appreciated by most employees, and that is the reason why it is vital in an industry.
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Pay raises are something which helps an employee to work harder. Inarguably an employee’s worth is measured by the pay that they get and this urges them to work harder to make the employers understand their worth. Pay raises are important as it casts a positive impact in the workplace. It also helps you to retain a unique talent and also as a token of thanks for their loyalty and services.
Pay raise can sometimes be an arduous task as it is difficult to determine whom to give a raise or how much raise is to be given. The best method is to evaluate the work of every employee in a systematic manner. An employee shouldn't feel left out. Talk to them and know about their problems and if the pay is a problem, then you have got a clue to do something about it.
Praises can never be overlooked and thus appreciating an employee and also giving an on-site raise can motivate them to do good work. Make good use of your software to know who is being paid less and given them a raise. You cannot ignore the quiet employees either who do not ask for a raise. You have to consider your entire organisation as a whole and set-up a mechanism such as monthly targets which will push them to work hard and get a raise. You also have to vary of your competitor who might be paying more for the same role.
Giving too much an increase the expectation and giving too less and make them leave. You have to find the right balance between these two. The average raise is around 3% to 4%, but it all depends on how you look into it.