What warrants a raise?

URCLEVER

URCLEVER

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I am curious to other input, what warrants a raise? As an employer I say, performance, attendance and attitude. If you do the bare minimum you get the bare minimum or nothing. Let me know your thoughts..

 
Leverage plays a significant part. A skilled employee has leverage. An employee in a tight labor market has leverage. An employer who can't find employees capable of doing the job has no leverage. Sometimes the best employee can't swing a raise because there are tons of people looking for a job or the job just requires the bare minimum in skillsets. It's a much bigger question than performance, attendance, and attitude. Can you get more employees with the same qualities? Are those qualities so hard to find right now that you would be willing to pay more to keep what you have?

 
I went to my previous boss with 3 pages of why I deserved a raise. Showing him the huge profit gains manufacturing instead of rebranding (50% to 500%). Saving money going out the back door and bringing in new business accounts through the front door. He proceeded to tell me how pissed he was because everyone else just expected there 3% yearly (I was asking 35%). I did all the math and I was no where near greedy. He turned out to be so I left (couple people followed). He is expanding pretty big, good for him. I went to someone that is not greedy, making what I’m worth but feel guilty sometimes about how much it is in comparison to other employees.

hang in there. 
 

so I have the luxury of telling my employees that if the company does better you will do better. We can always grow. I told them just today let’s find waste/inefficiencies within the company, which sometimes is like gaining a couple new accounts. 
 

I’m finally heavy on my mechanics side (which is a nightmare to find) but they put them self in that position by being lazy and knowing they are hard to replace. So payroll is more expensive. But previous guys stepped up when new guy arrived and it’s working out. No raises for them right now.period

days guys. Loyal. Always trying to find ways to get those guys more. 
 

night guys. Fly by the hour people, revolving door. Longer than a few months of employment. I don’t want to lose them and bare minimum is great. 
 

I think bottom line is and (I’m not the owner) that we are here to be profitable and make money. Like previous post, leverage is crazy at a skilled level. 

 
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I’ve worked in the construction trade for over 35 years. 20 of them were upper management. General Manager,Operations Manager, Division President and now as a Business owner. I have hired and probably laid off or fired about 3000 workers in my career. When the economy was good workers were paid well. When it wasn’t I reverted to my A,B and C player list and yes I kept notes throughout those 35 years. The A players were guys I knew I could count on and usually were first to get promotions which typically followed with a raise. The B and C players I kept and watched very closely. If I saw a B or C player step up to the A player level I gave them a raise without them even asking. That’s how you retain good help. The minute a B player wanted a raise that usually wasn’t deserved he became a C player. My thought was and still is. A raise is earned not just given. Step up and be a A player and I’ll give you a raise, promotion, company truck. The guys that couldn’t or weren’t willing to do that usually weeded themselves out. 

 
I learned early on to get rid of the guys that would leverage the busy times to ask for a raise. It’ll hurt in the short term but you’ll be better off in the long run. Not to mention it sends a pretty clear message to the rest of the staff. 

 
I leaned towards profit sharing as additional compensation along with paying for employee healthcare. After a period of time I picked up the cost of employee’s dependent (family coverage as well.)

Employer benefit cost, including profit sharing isn’t subject to the additional cost of your payroll burden (FICA, FUDA, Worker’s Compensation, SS taxes).

I put “key man” insurance on any employee with over 2 years employment ranging from $100k - $1 million. If an employee beefed their spouse receives 1/2 of the employee’s compensation for 3 years up to the insurance coverage amount.

My “open door” policy encouraged employees to come in and pitch ideas to better run the company, if an idea proved to make us more profitable the employee was entitled to 1/2 of the money in either a check or increased profit sharing.

I looked at it as if I was employing the spouse of an employee as well as the employee him or herself. Retention starts with the wife or husband of the employee, momma isn’t going to allow an employee to quit for an extra $5 an hour “claim” from another company trying to lure an employee away if you’ve locked up your guys / girls with the “golden handcuffs.” Golden handcuffs refers to the “Key man” insurance which not only pays the spouse if the employee dies but is signed over (given) to the employee if he / she stays with you for the agreed upon length of employment. An employee that stays with you for 20 years could walk away with $250 - $500k cash value in their signed over life insurance “key man” policy AND the cost of funding the policy is a business expense.

 
The only way I ever got a REAL raise was to quit.  My employer either figured out real quick I knew they were f'n me, or the new place was signing my checks. 

At one time a place was trying to get me to go salary.  I worked a ton of OT and I told them they needed to be higher than my last W2.  The GM laughed. Another opportunity came within 6 months and he had a choice to give me a 30% HOURLY raise or I was out.  He didn't laugh that day.  They came back to me a year or so later about salary.  I told them the same thing.  This time they did it, and I got a commission included that worked out to be about 10% of my salary.

Pay your "must have" guys more than they can make somewhere else..  

I today's AZ economy employees are getting hard F'd.  Prices on EVERYTHING are way up because of the immigration.  However, wages don't match.  People are job hoping for a couple percent increase.  Tenure doesn't mean chit anymore.

 
This is not a cut and dry equation.  Performance, attendance, attitude are a good start.

Here is my other list:
- What about increased company profits?  
- increased workload
- increased cost of living, to include long term inflation, gas prices, etc...
- Longevity/annual review increase
- promotion (probably goes with performance, etc...)
- market value increases.  This is a big one.  A lot of smaller companies/startups...start small.  People take chances because they believe in you and what they are doing.  They want to get in on the ground floor and grow.  Sooner or later you have to do a market value increase to add value to the person and to keep those you want to have stick around.  I knew NOTHING about logistics.  I took a very low salary (for me) to get my foot in the door.  I proved myself quickly and was given much more responsibility...then COVID hit.  We laid off half our workforce.  For those that stayed, we all took heavy pay cuts.  I never complained.  We bounced back fast and hard.  I gave it 3 months before I was going to ask to be made "whole" again.  The owner did it before I had a chance to ask.  Shortly there after, I got a big raise on top of it all.

I still feel I make way under what I'm worth (experience, lots of education, work ethic, availability, positive attitude/teamwork) but, I work from home and no one really tells me what to do.  I take time off as I see fit and my boss doesn't question me.  I have a lot of freedom so it's a trade off.  

With all that said, whenever I feel I need a raise, I start updating my resume and change my profile to "Open to work" on LinkedIn.  My boss usually calls me within a few days and says hey, we're giving you a raise... :lol:   I change my LinkedIn profile back and all is well... :lol:   I'm about there again.

I don't envy you in this market.  People suck.  Employers suck.  The media keeps telling everyone they "deserve" more.  Millennials and Zoomers feel they deserve more simply by breathing.  Another issue is there are people looking for work and aggressively apply.  Employers post jobs and then sit on applications and resumes for months.  I do not feel sorry for employers screaming for people.  DO YOUR PART!  Don't post a job unless you are ready to hire.

I could write a second and third volume here...

 
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I appreciate all the feedback. I have an employee who has worked for me for over 10 years. He does quality work, but he is just slow. I gave him a promotion to a lead position last year and had to put another team member in his place, as he could not keep up with the production plan. He dilly dallies and spends time not in his work area but came to me for a request for a large raise. I have other guys ready to fill the void, if he leaves. I just feel he does less, doesn't give 100% at all times., works at his own pace and slows others down at times. My issue is I appreciate loyalty. I understand the employee level, always wants more even if they are doing the same. I have full benefits, bonus program and profit sharing so it's not like they do not earn a great living.

Very interesting to see how some on here view their professions.

 
I show up on time ( when I'm not late ) and consume oxygen on company time. What percentage of raise is acceptable to ask for?

 
EastMT said:
I show up on time ( when I'm not late ) and consume oxygen on company time. What percentage of raise is acceptable to ask for?
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You get nothing!

 
Every year new targets their measurements are set by the Corporation I'm employed by.

Every year the cheese is in a different location of a new unchartered maze. They even change the flavor of cheese often as well.

I'm comfortable, being in uncomfortable situations with difficult clients. I'm supposed to have this talk with my leadership this week or next actually :lol:

I've seen 20+ year stellar 5 star employees get their 2 week notice because the rules of the game changed. Thanks EBITDA!

 
URCLEVER said:
I appreciate all the feedback. I have an employee who has worked for me for over 10 years. He does quality work, but he is just slow. I gave him a promotion to a lead position last year and had to put another team member in his place, as he could not keep up with the production plan. He dilly dallies and spends time not in his work area but came to me for a request for a large raise. I have other guys ready to fill the void, if he leaves. I just feel he does less, doesn't give 100% at all times., works at his own pace and slows others down at times. My issue is I appreciate loyalty. I understand the employee level, always wants more even if they are doing the same. I have full benefits, bonus program and profit sharing so it's not like they do not earn a great living.

Very interesting to see how some on here view their professions.
Click to expand...
At my work, we have to do a self evaluation. We answer 4 questions:

What do you think you're really good at and how does that show up in your work?

What are some things you’re proud of from the last year?

Which parts of your role bring you the most energy? Which parts drain you?

What would you like to focus on in the next year and how can your manager or (Company name) help you?

Have them fill out something and see where they think they are...then discuss and bring up contradicting thoughts if they aren't meeting expectations.

As for the loyalty aspect...I think your employee needs a little motivation. He might be getting complacent??? "I've been here for a long time, I got it made.."

:dunno:  

 
@dbart  Good points to bring up.

In the military, we had to provide a "brag sheet" and submit our own evaluations/fitness reports.  I do this at my current job.  My boss says I'm the only one who does it.

This is a great tool to see who the person sees themselves and their contributions.  It helps see where their efforts are being spent and helps leadership prioritize their resources.  If I submit that I developed this, reengineered that...and you don't remember or didn't know...how can you evaluate them or understand why they are wanting more?  Why about if they are saying they did this and that and that was not the best use of time and resources?  Then YOU as a leader need to be better and supplying tasks and priorities.  AND...what if they submit that they claim to have done things that you know they didn't...then you get to correct them or get rid of them for lying and not being a good team member. 

 
When you've been here too long.... you make to much, so you don't qualify for a raise unless you cure cancer. Doesn't matter that everyone comes to you for answers....you are just a number.  Pay is a funny thing... people will work as hard as think you are rewarding them for. 

You need to point out to the employees where they can improve....they won't see it on their own. 

 
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