Many business owners are confused about the justifications and correct timing of giving their employees a raise. Some use the economy as an indicator while others use company performance to determine if employees should get a raise. However, under both conditions described above, individual employee performance is not held as a deterministic factor and this creates a lot of discontent in the organization. This is especially true in cases of traditional business spaces like Cochin where proper parameters to map employee performance are hard to find. Businesses in rapidly growing commercial towns like Kochi are greatly helped by service providers like Centre A who facilitate services like business lounge in Kochi and meeting rooms in Kochi.
Rewarding Value Creation
One of the best reasons to give employees a raise is when they have created something of lasting value like taking up new responsibility, expanding scope of responsibility and taking ownership of projects. If the business value is expended by the action of employees they should definitely get a raise.
Accuracy and consistency in performance are often the most important things for any business. Reward employees who are able to meet deadlines flawlessly and achieve accuracy repeatedly in their work zones. In the end these employees are responsible for the daily progress of the enterprise.
When an employee moves the ownership of work from the manager/boss to his/her own self; it does the organization a great favour. Employees who operate efficiently through virtual offices in Kochi or accomplish tasks on their own are an asset to the organization. Give them a raise and appreciate them.
A team which has achieved significant results or done exceptionally well on a project is a good example of a group effort. It makes sense to reward the whole team in such cases as this is a powerful boost to the cohesiveness and team spirit of the group even if everybody’s performance/ contribution cannot be marked as equal.
In this age of high attrition if good performers stick around in a company for a long time they deserve a raise. Often a raise is a way of letting the employees know that they are valuable to the organization and this discourages them from moving out. Loyalty is now a very rare quality especially when combined with consistent performance.
Reward Fore sightedness
Often employees working on the front line have access to experience and information that allows them to make valuable suggestions. If such employees show initiative in coming up with suggestions which benefit or improve company performance then it is a good example of fore sight. Such employees should be rewarded with pay hikes and encouraged to keep up their observations.
Often small businesses have no other valid scope of giving employee raises apart from situations when they earn massive profits themselves. Employees who invest their time and effort in a start up should also be allowed to reap the benefits when the start up starts doing well. Profit sharing is one of the best ways to make employees feel wanted and appreciated.