You know you’re supposed to give your employees raises and promotions now and then, but this shouldn’t be something you do haphazardly or ‘just because’.
Read on for a breakdown of the reasons you should consider giving raises and promotions to members of your team.
When to Give a Raise
Before we move on to good reasons for giving someone a raise, a word on how to analyse your workplace. It’s not enough simply to go subjectively by who seems like a hard worker or who puts in extra hours. A hard worker may not be efficient; an employee may be putting in extra hours because they can’t finish work fast enough. Instead, you should crunch the numbers and actually see where your profits and productivity are coming from and who is contributing the most.
Reasons to Raise
Giving a raise is a delicate balancing act between what’s fair and right and the company’s interest. If you take these five reasons to give a raise into account you should walk that tightrope.
Recognising Hard Work and Achievement
A one-off achievement might not be enough to merit a raise in itself, but consistently high performance or regular notable achievements over time deserves a reward.
Rewarding a Positive Impact on the Workplace
You may have a member of staff whose sociability and positive attitude lifts morale or helps promote better teamwork. Providing this is combined with hard work, it has real value and is worth rewarding.
Retaining Uniquely Talented Staff
If someone on your team has rare skills or a unique combination of skills, a raise could encourage them to stay. This is usually more cost-effective than searching for a hard-to-find replacement.
If an employee has stuck with you through some tough times and helped your business survive, you might think about giving them a raise. Loyalty is worth rewarding, especially as employment becomes increasingly fluid.
Boosting Employees Who Accept More Responsibilities
As businesses grow and change, people’s roles can change quickly. Someone might take on an extra task or two to help out during a busy time and, next thing you know, that job’s become their permanent responsibility. If people’s responsibilities are increasing it is unfair for their wages to stagnate.
When Is It Time for a Promotion
Some key qualities you should look for in employees you are considering promoting are:
When you can quantify an employee’s performance in some way, it will be easier to demonstrate to yourself and your higher-ups, if necessary, how that employee has really gone above and beyond.
Demonstrated Commitment to the Business
Who are the employees ready to jump in when they’re needed, even if it might inconvenience them a little? Workers who demonstrate they are invested in creating good outcomes for the company – not just there to collect a cheque – won’t leave you or the company in the lurch when given greater responsibility.
A Solution Mindset, Not a Complaint Mindset
Everyone complains sometimes; it’s natural, but not everyone comes up with workable solutions. Look for employees who work to find viable solutions even in frustrating situations. By doing this, they are demonstrating concretely that they are ready to step up and take responsibility for what goes on with the team and help everyone.
Reward People Who Actually Ask for Criticism
Most people hate feedback like a snowman hates a salt shaker, so keep your eye on employees who actively seek out feedback and, even more importantly, don’t get defensive but actually integrate it to improve performance. These unicorns are going places one way or another, and you’re better off having that way be with your company.
Keep Your Payroll up to Date
Considering handing out a well thought through promotion or raise, maybe a few? Make sure your payroll stays up to date by outsourcing it to a professional team. You’ll have peace of mind and save money by choosing Aussiepay, call us on 1800 729 765 or enquire online.