Nominate your best employee now before the window closes!
Find out more details on our website
Employees in a competitive job market frequently consider factors other than salary when deciding where to work. Employers can make their company a more appealing place to work and differentiate themselves from competitors by offering a variety of attractive compensation options.
The right time to ask for a pay raise is at least six months after starting a new role or job—any time before this is not the right time. With that said, employees should be ready to ask for a pay raise, and employers should be willing to consider the offer.
Pay raises may be outside the books for various reasons. Some businesses do not have the capital, and with that in mind, business owners and employers should be open to alternatives to a salary increase.
So what alternatives can help with employee retention? How can employees ask their managers for pay raises or their alternatives? Read on to find out.
A pay raise is a salary increase. The average salary increase of 2021 did not match the cost of living. However, it is expected to change in 2022. The expected projections were a 3.9% increase, the highest since 2008.
Surprisingly, the average annual pay rise was about 4.6% in 2022. It includes wages, salaries, and benefits. The rate lines up with the average pay increase range of 3% to 5%. Unfortunately, only some employees enjoyed the early increase, partly because asking for a pay raise is a little nerve-wracking.
● List the most recent accomplishments or any from your time with the company.
● Ensure the manager understands why a salary increase for you will benefit the company's bottom line.
● Time it correctly.
● Propose a competitive salary per industry standards for your position. Additionally, ensure it lines up with the company's budget cycles.
● Provide the request in writing and factor in the company's salary structure.
● Be confident by understanding that it is a normal thing to ask.
There are multiple reasons why companies do not offer pay raises. The most common reason is that the organization has no budget. Additionally, some companies have strict guidelines concerning pay raises.
Another problem could be that the pay increase may need to be revised. Again the guidelines could limit the maximum pay increase an employee can receive. Unfortunately, the amount may not match the desired percentage.
Employees can take three main steps when the company does not offer pay raises or if the pay raise does not satisfy their needs. One of which is negotiating alternatives. There are many things employees can ask for instead of a salary increase.
Additionally, managers may find offering these benefits better or more convenient for the company.
Employers can offer certain perks that can substitute for a pay raise. Additionally, employees can negotiate for these alternatives to reward their hard work. Best of all, some pay increase alternatives can help employees create a healthy work-life balance.
Employers can set up an onsite gym or offer gym memberships to employees nearby. Offering or asking for wellness benefits usually satisfies both parties needs. General sports memberships are also an excellent way to cultivate a positive mindset among employees. Additionally, it can help boost productivity among employees.
Company policies usually factor in vacation days. However, employees can negotiate for more vacation time in place of a pay raise. Employers are often willing to provide more vacation days so employees can have more time to rest. Vacation time can make employees re-energized and develop a positive mindset for working.
Employers could offer discounted travel if extra vacation days are outside the books. Discounted travel will encourage employees to use their vacation days without worrying about costs. Discounted travel is exceptionally creative for companies in the travel or tourism industry.
If the company has access to vehicles, managers can dispense some of them to employees in place of a pay raise. A company car offers unmatched convenience, especially to employees far from the workplace. Not only that, it will cultivate a sense of dedication and responsibility to the company.
If company cars are not available, employers should consider public transport cards. They give the employees access to public transport for free. It is a thoughtful and valuable benefit. Convenience can improve an employee's mindset, helping them focus on the day, thus improving productivity.
One of the main concerns of employees with children is childcare. Daycare services can be expensive. Additionally, there is the issue of safety.
Therefore, a childcare program is a great benefit to offer employees with young children. It will give them peace of mind, allowing them to focus better on daily tasks.
If a pay raise is outside the works, employers should consider giving their employees more flexible working hours, if not reduced time. For example, employers should consider eliminating Saturday as a work day or ending the work days earlier.
Employers can also offer options like telecommuting, where employers can stay home and have more time with their families while accomplishing tasks.
Healthcare is a crucial benefit employers should consider in place of a wage increase. Health insurance, and dental and optical covers, among other things, can help employees. Health insurance is often a measure of good company in this age. Some of the best companies ensure to offer this benefit.
Employees may need a wage increase to keep up with the cost of living. If this is the case, employers should consider contributing to bills in place of salary increases. Employers can offer to pay for electricity, water, internet, and other basic needs.
Another beneficial alternative to an increase in wages is professional development and mentoring.
Providing these programs to employees will help them with career development. Upskilling programs also prove beneficial for the company. Better-equipped employers perform well and can help the company's bottom line.
Some employees want to seek higher education, and employees can play a crucial role while satisfying benefits.
By financing higher education, employers save their employees money. Additionally, they are investing in their future which could improve the company in the long run. It cultivates loyalty to the company and improves employees' attitudes.
Employers can contribute to their employees' lives through market vouchers and food subsidies. These benefits can significantly help with grocery shopping, lessening the burden of monthly expenditure.
Employers can also offer vouchers or payments for other basic needs—for example, clothing discounts, apartment or house financing, etc.
Employers should consider upgrading their items for efficiency if employees depend on particular equipment.
For example, employers can get new laptops for employees to improve outcomes while generating satisfaction. Employers should consider new office furniture, better internet, and even renovations.
The budget may accommodate a one-time bonus if it does not allow a pay raise. Employers should consider giving the employee a one-time bonus. Monetary appreciation, even once, will boost the employee's morale. In addition, it will show that the company recognizes the employee's accomplishments.
Employers can keep employees satisfied without offering pay increases. If the budget does not allow it, both parties should compromise with a benefit that satisfies both needs. The list above is suitable alternatives that increase employee retention rates.
Workpay can help you determine the best benefits for your office or remote team. Reach out now to learn more about our products.
Subscribe to get the latest articles, information, and advice to help you better run your small business. Delivered weekly, for free.