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July 17, 2024
Newsletter ArticleThe decision to issue raises can be a grueling process for company leaders and owners. This is the first in a series of compensation related posts. I’d like to share a few important considerations based on my experience around making decisions around giving raises. Given David Letterman is retiring; I thought I would share in true “Letterman” style:
1. You might consider giving your staff a pay increase IF……The business is experiencing above average profits!! During such times, it’s great to issue fat dividends to shareholders and nice bonuses to executives, BUT share the love and success with your key staff! Don’t think for a minute, talk around the water coolers doesn’t involve how well the company is doing financially!
2. You might consider giving your staff a raise IF……..Staff turnover is 30%+!! While there could be a number of reasons for such high turnover, it might be a good time to gain factual information on how your company measures up against other employers in the same industry sector for key roles. Data has proven over and over that if staff can do the same work at a nearby company for higher compensation, chances are they will hit the exit!
3. You might want to consider giving your staff a raise IF……You have staff that consistently give 100%+!! When you get such “A” players and they produce, you need to figure out how to reward them financially, or eventually they will get recruited away from you and it’s too late!!
4. You might want to consider giving your staff a raise IF………You have select staff that have invaluable skills!! Whether it a team member that is AWESOME with client presentations or a receptionist that guest always praise, it’s important to ensure such staff are adequately paid, or once again they will be subject “bait” and swim away!
5. You might want to consider giving your staff a raise IF…….You have select staff that you think could do your job one day!! Succession planning is so important no matter the size of the organization! If you have staff within your team that should be considered as a replacement to you, then its’ only appropriate you keep them happy and loyal to the business!
When it comes to effective compensation management within a business, it boils down to having confidence you are within the industry average and competitive in the marketplace. Rest assured your staff will know what other companies pay for similar jobs. While it’s not always about pay, EVERYONE wants to be fairly compensated for their work. AgCareers.com is proud to have a tool for employers within the agriculture industry that can assist employers in understating their position in the marketplace with respect to compensation. Click here to learn more about our Compensation Benchmark Review.
