Giving Raises To Employee

Small Business Forums Managing a Business Giving Raises To Employee

This topic contains 5 replies, has 4 voices, and was last updated by  Marius Kent 1 week, 3 days ago.

  • Post
    Alex T
    Participant

    Hello,
    I have a quick question for anyone who can help. When our employees get to the year anniversary of their emplacement we like to give employees a raise. From this point we have been doing a percentage based rate scale but someone had mentioned we should look into flat rate raises instead. I have done some research but still don’t know which one would be better for our company. If anyone has any suggestions or advice on this topic that would be much appreciated.

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  • Replies
    Lindsay
    Moderator

    Great question! We actually have a great article on our blog that explains the difference between the percentage and flat rate pay raise. Go to Business Math: When to Use Flat Rate Pay Raises to find out which option is the best for you.

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    Julia Heath
    Participant

    Hello Alex,

    We use a percentage based scale, it just seems to be easier to keep everything simple when we go around and do our yearly review. Since we tend to give raises annually it just makes more sense for our company.

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    Julia Heath
    Participant

    Lindsay that was a good blog post to explain the differences! I myself never really looked into the difference but now it is something to keep in mind.

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    Alex T
    Participant

    That blog post helped with how we are going to do out raises, I really appreciate the reference! Thanks Lindsay

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    Marius Kent
    Participant

    Normally flat rate raises are for times when you have a specific purpose. Percentages are the norm, but if a percentage doesn’t make sense (i.e. too high or too low an amount) then a flat rate is a good alternative to investigate.

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