If you haven’t heard this yet, it’s highly likely you will hear it soon. As I mentioned in our last newsletter, we are experiencing inflation. Which means unless your team has received a pay increase, or you have given them the opportunity to earn more by working for you they are worse off. It’s costing them more to live. My advice to you is this; you want to be on the front foot, you want to be pro-active and address this before they come to you.
Here are a couple of ways we help our members do this:
- Pay Scales – A simple way of showing how your team can earn more money as they acquire more skills and ability to perform their jobs better. It is almost like a career path. You win by retaining talent and your staff win because they know they have a future with you.
- Bonuses – When structured correctly bonuses can be a highly effective way of rewarding good performance. The key to a bonus being successful is it needs to be something the person receiving it has both some form of control or influence over the outcome. The bonus system also needs be easy to understand, easy to implement and benefits both the team and the business. When the business does well so do your staff.
- Stay Pay – This is linked to bonuses and incentivises team members to stay and by doing so they benefit from their full bonus.
If one of your team has already asked for a pay rise and you are not sure what to do, we have created a step-by-step process for our members on what to do.
The first step is to thank them and set a time to have the conversation. The next step is to do your research in terms of what is a fair market rate (you need to be in the top 20%) as well as to fully understand the value you offer to them as their employer. (Many people have chosen to work for less money and work for a great company that values and looks after them.) Step 3 is to have the conversation, hearing their thoughts, sharing your thoughts, working out what is right and fair and finally closing the gate. In other words, agreeing on a time frame before you have a similar conversation again.
We have developed 12 Questions to Ask Your Potential Business Coach to make it easier for you to find a good coach and a coach that is right for you.