4 key factors in determining salary increases for employees

Performance is the first thing to look at when discussing pay raise

How have you performed throughout the year? What are you proud of? Can you genuinely say you’ve made a difference to your company? These are all questions to ask yourself before asking a pay raise.

Performance is so important as it highlights multiple values about yourself. It shows how much you care about your job; how driven you are and your attitude towards career progression. After running my business for over ten years now, I always look at how my team has performed, whether that’s the number of PR leads they’ve generated or their general attitude towards work. 

It’s important to recognize that performance doesn’t solely mean the money or profit you’ve generated for your employer. It might be that you’ve stayed an extra half an hour on occasions, demonstrating the dedication you have towards your work, or the fact you’re always willing to help your colleagues out when possible.

Without good attitude and work ethic, there’s no pay raise

When I’m recruiting, I examine the interviewee’s personality and general attitude. For example, gauging a positive response to a particularly tricky scenario I may put to them or assessing their enthusiasm toward more menial tasks they may have to carry out. It’s easy to see who will fit the dynamic of our team.

Being a team player is one of the criteria for salary increase

Going above and beyond isn’t something in your job description, it’s a choice. It’s a choice you make off your own back which signifies the passion you have for working for the business. While it’s not something you might recognise as a personal achievement, more a personality trait, as an MD, it is something I would recognise and take note of.

Employees who are proactive have better chances for a pay raise

It’s important to highlight the fact that how I would determine my employees being worthy of a pay rise, may not be other MD’s definitions. Equally, team members may also have their own contributing factors as to why they feel a raise is warranted.

There are few encouraging things you can do that might aid in a positive outcome:

Putting yourself forward

Assess how you’re viewed within the company

In a business, as MD, my opinion is not the only one that matters. Who I promote and give more responsibility to has to be selected carefully so that it benefits the dynamic and growth of the team. Team members that are selected for pay rise or more responsibility tend to be those that encourage others and build strong and solid relationships with both clients and staff.

As an employee, being aware of your interpersonal skills and how you are viewed and valued by your other team members is a good indication that you are the right fit or ready for promotion or pay rise.

Recognising the bigger picture

Opportunity for a pay rise can be affected by external factors that are totally out of a business owner’s control. A company may have planned for particular pay rises one year but when a recession hits, for example, finances may not be as readily accessible.

For employee’s looking for a raise, it’s all in the timing. Be aware of the current climate and other external factors that may mean a conversation about pay could be less productive.

Conclusion

Sarah Kauter, Founder of VerriBerri