Home > Uncategorized > Things to Do This Week: Give Staff Raises

Things to Do This Week: Give Staff Raises

For the past 18 months, my wife has been working for a retail franchise owner about whom it is said, “She doesn’t give raises.” Needless to say, my wife has given her notice, and leaves mid-September. There’s only so much of that a person can take.

Wage costs consist of the actual hourly rate you’re paying staff, plus the additional payroll burden aka employer’s share of deductions, plus any workplace insurance premiums based on staff wages. A small increase — like one of our employees who got five cents at another job — says, ‘I thought about raises, and decided this was enough.’ In that case, perhaps better to do nothing at all.

On the other hand, you’re probably spending money on other things. When my wife saw a $500 invoice for a piece of stockroom equipment which wasn’t needed, she realized the magnitude of the inequity. While you may find that objectionable, chances are that employees see other expenditures as gratuitous (examples might include an advertising expense, or new lighting) when wage increases are slow in coming.

At our store — for which, ironically, she is the bookkeeper — we try to give a 1% increase every 6th paycheque; in other words every 12 weeks. (This year, for the first time we’ve had some hiccups.) That means a 4.3% increase over the year, which is better than some union settlements. We also start employees above minimum wage. When our province announces a new rate, we basically ignore it, because we’ve already got a small cushion between their rate and what we pay. (We are required by law to post the rate sheet anyway, pending a minimum $500 fine for not doing so.)

Another good policy to have is a yearly review. This allows both employee and employer to get things said, out in the open, and then wage rates can be adjusted thereafter.

So… how long has it been since your staff got a raise? A desire to have employee retention demands that you consider this. Every day that staff members build their product knowledge base, and have increased history with regular customers means their value to you and your store increases.

 

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Your Response (Value-Added Comments Only)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: