When should you give raises?

It is very important for employers to give their employees raises. Raises show employees that they are important to their employer and that their hard work is being noticed and rewarded. If an employee feels like they are not being paid enough, they may decide to leave a company. Because employers like to keep good employees it is important that they understand when they should give raises. This articles talks about when employers should give raises to their employees.

When they deserve it

One of the best rules that an employer can use to know when they should give their employees a raise is when the employees deserve a raise. If an employee has worked hard for awhile, and have really helped the business it may be time for their employer to consider giving them a raise.

Some of the reasons that an employee may deserve a raise include: contributing their unique ability or talent, good sales performance, good job performance, and the employee has worked for the company for a certain amount of time.

Unique ability or talent

There are some employees that have a unique ability or talent that brings something special to the business or company. When this ability, talent, or other unique quality helps to make the company more successful, the employee could be rewarded by their employer by receiving a raise. A raise is a great incentive that will encourage this employee to keep doing what they are doing.

Good sales

When an employee brings in a lot of business for a company, an employer could give them a raise. This is a great way to reward a hard working salesperson.

Good job performance

When employees go the extra mile, work hard, and encourage other employees to do the same, employers should give them a raise. Not only will this encourage that employee to keep up the good work, they may even decide to work harder, and other employees will see the great incentive that they too could receive if they work hard.

Time

Generally it is better for a business to keep their current employees instead of constantly hiring new employees. A great incentive to help employees remain loyal to the company is to give them a raise. An employee who has stayed with the company for one year is entitled to a raise.

When they ask for it

Generally, if an employee asks for a raise, an employer should at least consider it. When an employee asks for a raise it is usually because they feel they deserve it. Sometimes, after the employer has thought about it, he or she decides that the employee does not deserve a raise. This conclusion is completely valid.

There are times when an employer may not agree that a particular employee deserves a raise even if the employee feels that they deserve one. Other times an employer may realize that a certain employee has been overlooked and that they do in fact deserve a raise.

When you need to be competitive

Sometimes an employer may choose to give their employees a raise to keep their employees. It can be important for a business to keep their employees' salaries competitive with similar companies in the area so that the company does not lose their employees to the other companies.

To keep employees happy

Giving good employees a raise every year is a great way to keep them happy. Happy employees tend to work harder for their company. In turn, happy and hardworking employees can also keep the employer happy and the business doing well.