A recent survey from Glassdoor showed that 37% of UK employees expect a pay rise within the next year. For many employees, the number one form of recognition is a pay rise. Therefore if you have an employee who has gone above and beyond for the company, has been loyal or consistently does a good job then you should consider a pay rise. Here at Recruitment Genius we have suggested some of the best ways to give employee a pay rise.
Determine which employees deserve a pay rise
First of all you will want to identify who is a great asset to your business. Who has excelled at their job, who has gone the extra mile and who works hard every day. Now determine when was the last time you recognised them for their hard work and how you rewarded them. Do you think that they could be worthy of a pay rise? If the answer is “yes” then you should reward them for their efforts. If you don’t your staff could feel unappreciated. This could cause them to not be as willing to go the extra mile in the future if their efforts are not recognised.
Decide the amount of pay rise they will receive
Once you have determined which employees are worthy for a pay rise, determine how much of a pay rise they should receive. You should give them a raise that makes them feel appreciated but also encourages them to keep on working hard.
Furthermore, you do not want to give them a pay rise that does not match their efforts. If you do staff may look elsewhere if they believe their efforts would be valued there. This could affect your business badly as you may lose great talent to a competitor.
Deliver the good news
After you have determined who to give a raise to and how much to give, you should call them into a meeting. Start off by congratulating them on their work and explain specifically what they have done well. Tell them that you would like to reward them with a pay rise and tell them how much by. If you do this, not only will you heighten your employee’s mood, you will also show that see them as a valuable part of the business. This could increase their loyalty to your business and keep their dedication up.
Set your expectations
Every employee should be eligible to a pay rise if they continue to add value to your business. Therefore it is a good idea to talk to your employees about what type of raise they can expect if they meet their goals. You could have quarterly performance meetings to track their progress to determine if they could be worthy of a pay rise. By setting your expectations it not only helps your business to succeed, it also encourages a healthy bit of competition. To which your business will benefit from.
Of course for some businesses, footing a pay rise may be too expensive. If you are on a tight budget, like most small businesses are, you may decide to offer bonuses or other incentives. This way you show that you appreciate their efforts while keeping your bottom line healthy. However if you do not show your appreciation then you may end up losing them.