Every employee will expect a raise at some point. And if you want to get the best out of your staff, a well-timed raise can help. But how do you decide how much to give them – and when?
Renumeration is a big part of job satisfaction. So if you're going to hold onto your best staff, you'll need to pay them what they're worth. It's not enough to give the right starting salary and keep up with inflation. You’ll be expected to reward them for improved performance and skills. The average raise is around 3% but it varies across industries and professions. Consider it a good starting point. You can decide whether individual employees deserve more or less.
Replacing an employee can cost you as much as 20 percent of their annual salary. Besides helping you retain staff, employee raises will also give you a spike in productivity as morale goes up.