How Do You Handle the “I Want a Raise” Discussion?
“I Want a Raise” Now What?
As a small business owner, you’ll often receive requests for a raise from your staff. Maybe you have employees go directly to their managers for the salary discussion, or perhaps you handle it yourself as part of an annual review.
However, you address the issue, below are some tips that might help take the discomfort from the process.
1. Be Ready
This is another way of saying “Be prepared.” It’s inevitable that you’ll be asked to award raises, so it’s imperative you know your market and industry. What’s the general health of your industry and what’s going on in your market? Take a look at similarly-sized companies who do what you do in your location. What percentage raises are being given by position? If you have reliable comparative data, you can better arrive at a fair and competitive salary increase number. Usually, your HR department or outsourcing partner will have this information.
In addition, you know your organization best. What is your budget for raises? What are your company’s priorities? Revisiting this information will help as you decide how much to increase a position’s pay. It’s critical that you can explain why each staffer is getting above or below the salary increase standard. Finally, how long has the employee been with the company? How’s his or her performance? What value does the employee bring to the company? Evaluating all this and more will help you arrive at a fair decision.
Now that you have your qualitative and quantitative data ready, sit with your employee and listen to what he or she says without interruption. As a business owner, you can build morale and loyalty just be letting your employee feel you’ve heard what he or she has to say. Ask your staffers to explain in their words what they believe they’ve contributed to the company. You might discover something you didn’t know.
3. Be accountable.
When you talk, clearly state what you can and can’t do. Consider sharing the organization’s budget for salary increases, and explain the process for determining when and why employees receive raises.
And always be sure to follow up. If your employee asked the question, get him or her answers. Pass concerns on to HR. And make sure any salary increase happens when you said it would.
The “salary” talk isn’t easy, but with some forethought and planning, it’ll go a lot smoother!
Employee Incentives- what’s the deal? Employee incentives, the rewarding of work performance, loyalty, innovative ideas, and sales excellence, are used by more than half of American companies, according to the Incentive Research Foundation. Incentives such as trips, awards, and cash might kickstart staff excitement and productivity in the short term. However, research has found that…
Does Employee Morale Affect Company Culture? Happy employees are productive employees. Improving the productivity level in the workplace benefits both the team members and management alike. So how do you keep morale up in the workplace? We’ve compiled a few tips. Recognize employee contributions: Let your employees know you value their work. Tell them they’re…
Employee Engagement Tips While providing a challenging work environment and a solid work culture are important for adequately engaging your employees, you may find that you need to go a step above the norm to make sure your employees are engaged. Here are several tips for better engaging your employees: If you are looking for…