Even if the pandemic has forced you to cut down on staff, there’s a chance you have a few employees you’d like to reward if your revenue has been improving this year. Communicating a pay raise can be extremely exciting, but, believe it or not, it can go wrong! Here are a few tips to ensure the news doesn’t cause trouble.
1: Provide specific context
Is it the company’s philosophy to award pay increases based on merit and contribution? Then say so! Don’t assume it goes without saying — showing appreciation for their specific contributions that year can recognize them in a well-deserved way.
2: Give the amount in dollars
If you can, be upfront about the increase in a dollar amount, whether it’s an hourly or salary increase. A mere percentage increase simply isn’t as motivational.
3: Express gratitude and good faith
Focus on the fact that you’re not only grateful for their work, but you also have good faith they’ll continue making valuable contributions in the future. Some managers make the mistake of putting emphasis on why the raise isn’t larger. Also, you should never compare their achievements to those of other employees.
If you’re looking for payroll/HR services that can make giving your employees their deserved payment even easier, AFEUSA has you covered — twice. Gusto and ADP both have exclusive offers for AFEUSA members, so you can always be one step ahead. Check them out and see how much you can save by joining our family of entrepreneurs today!
Article by Charles Jackson, President of AFEUSA