8 Things to Consider Before Offering an Employee a Raise


Offering an employee a raise is a critical moment for both the employer and the employee. Employers want to motivate their employees for work, and employees seek to be rewarded for their achievements. Raises also keep employees happy.

So, how would you go about offering an employee a raise? You should think about several things first before deciding to offer your employees a raise.

Here are the things to consider before offering an employee raises:

  • Performance VS. Expectations
Before you tell your employee that he is getting a raise for excellent performance, think about what you really expect from them. It is easy to compare the amount of work they do for the pay they're receiving to someone else with a similar grade/experience level, but you may not be comparing apples to apples in the end.

  • Feedback from clients and coworkers
If you want to earn an employee's long-term loyalty and commitment, it's important to first get feedback from his clients and coworkers before giving them a raise.

  • Employee's value to the company
As a business owner, you want to give your employees a pay rise, but you also have to think of its budget. With that in mind, you must ask yourself if an employee is worth the company's money or not.

  • Quality of work
Once a year, you must measure the quality of the employee's performance and compare it to the previous year. If it has improved, he deserves a raise.

  • Growth since hiring
Tracking your employees' quality of work is a great way to manage growth in your startup. You can't be sure whether to give the employee a raise unless you measure his contribution to your business.

  • Growth as a leader
Before offering an employee a raise, you should measure his leadership skills. An unfortunate number of companies fail to recognize the importance of building leadership into their organization. As a result, companies are unsure if veterans within their workforce are ready to move up. While some veterans may feel prepared to grab the reins, many veterans don't know how to be a leader until they acquire specific skills.

  • Take initiatives and Resourcefulness
When you think about offering a raise to an employee, several things should be measured: initiative, Resourcefulness, and drive. These three factors weigh significantly in an employee's worth to the company. If an employee is resourceful and shows initiative, this will influence your decision when it comes time to offer a raise.

  • Adherence to Company Values
I can't stress enough the importance of focusing on company culture and values when revising salary structures. It's essential, not just to ensure fairness and alignment with a company's objectives, but more specifically to measure an employee's adhering closely to these values.

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