Employees expect the occasional pay raise. It’s a way to recognize and reward them for all of their hard work and can reduce employee turnover. At the same time, giving your employees raises shouldn’t be a decision that you make lightly. While there are advantages to employee raises, it can also backfire and actually hurt your business.
Key Takeaways:
- Simply put, your business may not have the funds available to give your employees a raise. This means that if you do give your employees a raise you’re going to have to find that money somewhere, like hiking up your prices or taking out a loan.
- Deciding to give your employees a raise across the board may seem like a great idea in theory, but it can actually backfire since you’re no longer recognizing the employees who go above and beyond.
- When the only incentive that you offer your team is money, they become more focused on how much they making instead of the quality of their work. This in turn not only pits employees against each other, it decreases your business’s overall productivity.
“Deciding to give your employees a raise across the board may seem like a great idea in theory, but it can actually backfire since you’re no longer recognizing the employees who go above and beyond.”
http://www.ceo.com/operations/8-reasons-giving-your-employees-a-raise-will-hurt-your-business/
