Money isn’t everything, but the salary you pay your employees directly impacts their standard of living. Consequently, top talent won’t stay in their jobs for long if they’re being underpaid.
The departure of your best and brightest employees would likely wreak havoc on your organization, so ensuring these individuals remain properly compensated should be a top priority. While there’s no steadfast rule governing the appropriate time to dole out raises, this is generally decided annually when performance reviews are given.
If the time has come to give your top employees a much-deserved raise, use these tips to determine the size of each person’s salary bump.
Research Market Rate
Find out how the employee’s salary compares to other local professionals with similar jobs by conducting research on sites like the Bureau of Labor Statistics and PayScale.com. This will give you a good starting point to base the person’s raise on. If you find they’re currently underpaid, it may be wise to give them a bit more than intended, so they’re earning a little above the average salary range. After all, if you’re not willing to pay a competitive salary for your top professionals, another company will be happy to step in.
Assess Performance & Overall Value
Even with top talent, raises should never be awarded due to feelings of obligation. Granting salary increases for no justifiable reason gives employees no incentive to work hard. Carefully examine each person’s contributions to the company since their last raise. This may be easier for some employees than others (Ex. you can easily track the amount of revenue a sales professional has brought in) but do your best.
Take Your Budget Into Account
No matter what, never give raises your company can’t afford to pay. Giving a smaller pay increase or none at all is much better than eventually going bankrupt because your company can’t handle payroll expenses. If you can’t afford to grant the sizable raise an employee deserves, offer enticing fringe benefits. This may include anything from extra vacation days and work from home benefits to the ability to bring their dog to work.
PrideStaff North Dallas can help find the talent needed to take your company to the next level. Contact us today to start your search for the best and brightest professionals in the Greater Dallas Area!