As The Boss, Do You Offer A Pay Rise Or Do You Hope It Never Comes Up? HINT: Hope Isn’t A Strategy!
As an employer we often dread the conversation with someone about a pay rise. Here are 3 tips for you:
Choose the right time – As an employer, giving someone a pay rise on their employment anniversary sends the message that tenure will get you a raise. Surprise your team member with the offer for a raise after consistently performing above and beyond expectations.
Have a plan – Your plan should include the numbers behind your plan to show why and how you came up with the number. Numbers are facts and these allow for an objective conversation.
Be clear & positive – Make sure the meeting to discuss the raise is only about the raise, no other issues are discussed. Stay focused on the positive outcome you want from the meeting without issuing or insinuating an ultimatum.
Pay raises can be a delicate conversation and often one that is avoided. This avoidance will lead to discontent and resentment from potentially both parties, so ensure this conversation happens annually.
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.