When Is It Time to Raise Employee Salaries?
When employees leave, there is an inevitable disruption in productivity. Other employees will be pulled away from their tasks to fill in the gaps until you find a replacement. When you do hire a new employee, they will need time to learn your business. Maintaining employee morale, keeping productivity high, and reducing turnover are important to keeping your business running smoothly.
A crucial part of employee retention is routinely reviewing your company’s compensation packages and awarding raises as the market demands. Competitive salaries can be key to encouraging employee loyalty, as it shows them how much you appreciate their efforts. If you’re looking for the right time to increase employee salaries, here are some things to consider.
Raise Employee Salaries When the Company is in Good Financial Health
If your company is experiencing noticeable success, it’s the perfect time to reward your employees with a raise. When your company is doing well, the employees know it. Failure to consider this factor may end in lower morale and unhappy employees.
Employees are Asking for Raises
While a single employee asking for a raise may not be indicative of your team’s satisfaction with their pay, take note when you get requests from multiple employees. Multiple people asking for a raise shows that it may be time increase employees salaries. If you don’t, you may see more people leave your company for better pay elsewhere.
Raise Employee Salaries When There is an Increase in Responsibilities
It’s important to recognize when you have employees who go above and beyond their normally required work. If you have employees who regularly take on additional roles outside of their job, it’s time to consider giving them an increase. Whether they’re filling in necessary gaps or the company is just maturing, more work should equal more pay.
Employees are Leaving for Similar Jobs with Higher Salaries
Occasionally, employees find positions that are better suited for them with another company and there’s nothing that you can do. While these moves are often out of your control, be mindful of why they are leaving. If employees regularly reference better pay in their exit interviews, it may be time to roll out the raises.
Salary can be a complicated issue to negotiate for employees. Hopefully, considering some of these factors can help make that decision easier for you to manage.
If you’ve had some vacancies, Addison Group is here to help! For more than 20 years, we’ve helped companies find dynamic talent to take their business to new heights. Reach out today for stellar talent!
