Always give context to the pay increase. Whether you are issuing a raise to be consistent with the cost of living increases in your area or if you are rewarding exceptional work ethic or performances, always make sure that you let your employee know why they are receiving a raise.
Sometimes pay increases are written into an employee's offer letter or contract. Other companies discuss and issue raises during employee reviews and evaluations. You should also consider individual pay adjustments for employees whose performances are consistent with the growth of a company.
Communicating a salary increase provides an opportunity to sit with your employee and review the reasons or equations used to calculate the amounts in their paycheck. Some factors that impact salary increase amounts include: Competitor company pay scales. Size or value of the employee's client book.
Generally, discussions over pay increases should be done in person and privately. You might also consider having a representative from human resources or accounting present to answer any questions or address a miscommunication that could result in conflict or legal liability.
Sometimes pay increases are written into an employee's offer letter or contract. Other companies discuss and issue raises during employee reviews and evaluations. You should also consider individual pay adjustments for employees whose performances are consistent with the growth of a company.