Performance Reviews and Employee Raises

Small Business Forums Managing a Business Performance Reviews and Employee Raises

  • Post
    Thandi Pope
    Participant

    A majority of my employees are up for performance review and can be requesting a rise in wages. Presently half of them, in my eyes, their performance doesn’t warrent a rise, however my partner disagrees. She believes if we don’t increase their wages we’ll loose them. I believe that it will not be an issue, as they need to understand that currently they are under-performing. Any advice on what we should do would be great.

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  • Replies
    Brad Ume
    Participant

    If you think that they are under performing make sure to mark all of that in their performance review. It is the main reason that we have them, so we can tell people where they stand. When they ask for a raise you can tell them what they need to improve on in order to get that raise in the future. If they see it as an attainable thing to work towards then it will make them work harder and shape up in order to get what they want. If they quite well honestly they weren’t worth having on your team in the first place.

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    Kevin Garnet
    Participant

    Honestly, if they are underperforming then they know they are underperforming so it shouldn’t catch them by surprise that they aren’t getting a raise. I agree with Brad that you need to make sure to have performance reviews so they know what they can improve. They won’t know unless they are told.

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    Sonnet
    Participant

    Performance reviews are the best way to help employees understand where they stand. That being said, you could consider smaller than average raises, like just 1 or 2%. It’s better than nothing and can be encouraging to a poor performer who’s trying but not making the cut.

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    Alex T
    Participant

    I agree with what everyone has already said, we actually just wen through our own review recently. It allows employees the chance to also talk to you about things that they may not have felt comfortable talking to you about before. It is a common thing for my company to do these quarterly as a performance review and then monthly as just a check up so we can talk about things. It puts the employees at ease because they are already used to it.

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    Tina E Johnston
    Participant

    Can you afford to lose people? If you hold back on money, it could cause some people who consider leaving, especially if they are underpaid or feel underappreciated.

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