13 key criteria that should influence your raise decisions

Regular payment elevated can show employees how much you value their hard work and can also keep them from feeling dissatisfied in their current environment. However, it is important to know when a raise is most effective and best deserved.

Therefore, an expert committee of the Young Entrepreneur Council (YEC) dealt with the following question:

“What criteria do you consider when deciding whether or not to reward an employee with a raise? Why?”

Consider these 13 factors next time your company’s annual performance reviews are conducted.

1. Contribution amount

“In my company, it’s about not just doing tasks, but also contributing to a whole in customer projects. Earned employees can look ahead, plan and deliver accordingly on a monthly basis instead of being affected by daily deadlines. I don’t just look at performance, but also behavior and strategies. The right attitude can make all the difference in a time constraint. ”~ Standing pearl, Optimal7

2. Performance goals

“We give pay rises when a team member exceeds their performance targets that bring more performance or value to customers and team members. Sounds simple, but defined goals based on metrics that we as an organization decide on are rewarded accordingly if they are exceeded. Since everyone agrees on the metrics and goals, all salary increases and rewards are transparent, which benefits both culture and individual morale. ”~ Matthew Capala, Alphametic

3. Consistency area

“Take into account consistency – not just in performance, but in attendance, character, and the way you work with everyone. I would also like to see consistency in flexibility and in dealing with stress. You may be a good person now, but problems and conflicts will definitely change you! A raise is for those who work well with the company and who keep showing that their passion for the job has never changed. ”~ Daisy Jing, To ban

4. Duration of employment

“In my opinion, employees who have been with my company for a long time deserve a return on time investment. And while it’s nice to try to reflect the income they generate in their salary, it’s not always obvious what impact their work can have on our bottom line. Instead, I reward those who spend the most time with us and show the most enthusiasm for their work. ”~ Bryce Welker, Hit the CPA

5. Market price and scope of work

“The payment of a team member depends on the market tariff and the scope of work. When the market has adjusted, the business owner has no choice but to go with the market or risk losing their employee. If the scope of work has increased either by volume or by qualifications, a salary adjustment should be made accordingly. ”~ Michael Hsu, DeepSky

6. Intrinsic value

“Take into account the value of employees and how ‘irreplaceable’ they are. For me this is the number one factor. Replacing an important employee is not an easy task. How difficult it is to replace the person should help you determine what kind and how many incentives to offer. ”~ Shu Saito, All filters

7. Ability to achieve goals

“We focus on an employee’s ability to achieve goals. We try to base the salary on typical productivity, time spent in the company and the employee’s ability to meet our expectations and needs. An employee has to be with the company long enough to be able to assess precisely whether their performance is constant, how much you rely on them and whether they continue to add value to your projects. ”~ Salvador Ordorica, The Spanish group LLC

8. Innovation

“When deciding whether or not to reward an employee with a raise, consider how they brought new, fresh ideas to the table to help your business move forward. Those who come up with unique ideas will help you stand up to your competitors and create content and campaigns that appeal to your audience so you can increase conversions. ”~ Stephanie Wells, Impressive shapes

9. Performance metrics

“I look at our KPI reports when determining how much an employee gets for their annual raise. If they exceeded our expectations, they would receive a much higher bonus compared to someone doing the bare minimum. This strategy encourages our team to do their best and take responsibility for their quarterly goals. ”~ John Brackett, Smash Balloon LLC

10. Scope of Responsibility

“I like to give raises to team members who take on additional responsibility or are interested in other projects. As we are a small company, responsibilities can expand or change quickly, so I appreciate it when someone takes on new or additional responsibilities. If they do, I will compensate them accordingly. ”~ Kristin Kimberly Marquet, Marquet Media, LLC

11. Delivered Value

“Focus on the delivered value. There is often a clear contribution to a company’s bottom line that can be attributed to each employee. Rate performance monthly. If there is an alignment, you should offer the employee a raise at the next review. ”~ Tyler squealed, Giggster

12. Potential growth

“I want to see if you can imagine growth in the company. I’ll start a conversation and come back to that classic interview question: ‘Describe your future at this company.’ When it’s clear, enthusiastic, and realistic, move on with the raise. Reward loyalty and strive to preserve institutional knowledge. ”~ Tyler Bray, TK trailer parts

13. Amount of investment

“Employees who are invested in the company often have ideas for improving work processes and the customer experience. Such people go above and beyond their duties and make a real difference to the company. Contributions to improving the company as a whole are critical factors to consider when considering a raise. You want to keep such employees and also reward them. ”~ Syed Balkhi |, WPBeginner

Image: Depositphotos

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