Re: Employee raises

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Posted by Deborah Enos on October 23, 2001 at 15:29:43:

In Reply to: Employee raises posted by M.R. Daniels on October 20, 2001 at 06:45:17:

: I managed 14 employees for 17 years in a big east coast city and never had this problem. We now live in a rural farming community and when we first moved here five years ago and needed to hire help we didn't research salaries well enough and within a year found we had a crew of part time and full time assistants and were paying them nearly double the local going rate. I wouldn't have minded that except that they weren't terribly skilled and others would do the same job for far less money. It was one of the glitches in our production that we had to sort out.
: Well, those people are gone. We had to lay off the highest paid ones and eventually they found other work, and guess what? Our production is the same without them! Lesson learned.
: Two of the original people are still here, doing a very nice job, and being very loyal and hard working and my tendency is to give them a raise.
: Here's my question: Is there a standard "cost of living" percentage raise affixed to general raises? I don't want to get back to where I am paying these people more than they're worth (I sometimes am a softy) when I could find a half dozen new people who could do just as well for less. OTOH, I feel they deserve some reward. Would an occasional bonus, say an extra hour or two bonus when they have done something extraordinary, be better or an across-the-board increase? I don't want to lose them and have to train someone else, but I am hesitant to get back into being the county's Biggest Sucker of all employers! (We wondered why we had so many people inquiring here for work!)
: How do you determine if the work force is worth more, or if it would be just as worthwhile to find others and train them up?
: MR

I hope this is helpful, when, in the past, I have considered raiseing the pays of people who worked for me , I created three task charts, which I used to assist in the decision making process; 1st task chart was titled"what is the job worth" under this title I would look at how important was the JOB to the overall funtioning of the company, 2nd task chart was title "how good is the person" under this I would look at the overall contribution the individual had made and was continuing to make to the company, 3rd task chart was titled"Can I continue to manage an increase over the next 5 years based on current trends" under this title I would take into consideration, company growth, expansion, change of types of product, personal etc, anything and everything that would conceivably effect the business in the next 5 years. When these charts were completed ,I quite often found that although the indivual I was looking at giving the raise to was worth considerably more than I was paying them the job quite often was not, but when I took that persons skills and brought them into the future 5 years I could change the nature of the job, so they felt challanged and raise their salaries to compensate , so far this approach , although time consuming , has worked and I believe those employees would agree. I want to make a cavate to this statement and say this approach WAS the one I used when I had employees, but by choice,now I work alone and no longer have this issue to deal with.

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