In this highly economic competition, burgeoning companies are prone to focusing more on the business’ advancement in terms of profits and customer satisfaction. Hence, the existing workforces are demanded to achieve to their best capabilities that drive to the targeted goals and visions.
Employers do realise that the high demands of productivity should be balanced with adequate compensation to the employees should they not want to lose their key talents. One great way to retain the key employees is via salary increment. The 2015 Careerbuilder survey found that 64 percent of employers believe in raising the minimum wage.
Money, indeed, is not the only factor that affects the level of job satisfaction and engagement for employees. However, not earning enough could significantly contribute to workplace stress and results in employees seeking another job that appeals more.
“Simply paying employees more money can itself increase productivity on the job. Not because money is can compensation for greater productivity per se, but rather because the employer has effectively alleviated the most prevalent source of stress,” said Dr. Greg Williard, Harvard University professor and Cangrade’s Senior Vice President.
An upfront salary raise might be costlier compared to other non-monetary benefits, but it seems to be the greatest allure of why employees are willing to stay loyal to the company.
HR managers and employers, here are some practical considerations on why a company should execute a regular salary increment to employees:
Salary Raise will Help Recruit and Retain Talents
If an industry is known to have difficulties in finding right talents for a job position or facing issue with high employees’ turnover, take a hard look at the salary package offered to the employees. Based on 2015 Jobvite Job Seeker Nation Survey, it showcases that 61 percent of job seekers choose to accept offers based on the salary offered.
Companies that can offer vacation days, excellent health insurance or a good retirement program might not be able to attract and retain their staff effectively. Why? Employees might enjoy the additional benefits, but those are just complementary, and not a replacement to as of why they are working, that’s money!
Instead of offering a standard salary with costly additional benefits, it’s better for the business to initiate a program of regular salary raise to attract the potential talents and retain the key employees at work.
Salary Raise Increase Employee’s Job Satisfaction
A company might provide flexible working hours to increase the employee’s work-life balance and decrease their stress levels. Though appealing, it doesn’t bring about significant healing to the burnouts.
Based on a 2015 report from the American Psychological Association, 72 percent of respondents are feeling stressed about money, and 22 percent said they experienced extreme stress over finances. Increasing your employee’s salary helps them to feel more secure about their futures, improves their productivity and job satisfaction.
Salary Raise Improves the Company Branding
Loyal employees with high job satisfaction will be great mouth-marketers. In this highly advanced virtual era, it is easy to share opinions, ideas and feelings to others through social media platforms.
A salary raise not only affect how your employees perform on their job but also makes them more motivated to achieve greater heights. Of course, doing employees’ appraisals to justify the salary raise is important too.