Research has shown that nearly 70% of employees who were denied raises intended to find a new position afterward. In order to keep employees happy, money is clearly a key factor in the business world.
In fact, giving merit raises is one of the most effective ways to not only retain employees but also boost the performance of your strongest ones as well. By showing your appreciation with numbers, you’ll be strengthening your business and fortifying your team with the motivation that’s crucial for your success.
Employee Motivation: What It Means for Your Business
No matter which way you look at it, your business is only as strong as the employees that make it up. That’s why it’s essential to keep employee motivation high on your list of priorities.
There are many ways to do this, such as increasing allowed vacation time, upgrading positions, and giving formal recognition, but the most obvious answer is this: increasing their pay grade.
Many employers are still opting for average annual raises in order to retain employees, but these often aren’t enough to ensure that your team is working to their full potential. If you want to really raise the bar, giving merit raises can take employee performance to the next level.
The Efficacy of Giving Raises
If you’re looking for the best way to motivate your employees, put your money where your mouth is. In other words, don’t just verbalize your appreciation for their work: show them you mean it by upping the ante on their next paycheck.
Imagine your employee logging into www.paystubs.net and seeing a bigger number. In the numbers-driven world of business, that’s sure to be hugely effective towards driving them to perform at their best.
The Benefits of Merit Raises
In the business world, you get out what you put in. That’s why the standard structure of average annual raises sets up a similar result: average employee performance.
At the end of the day, money is the primary motivating force for any job. Your employees have lives of their own that they’re working for. If they already know what to expect from their position, then they’re likely to do the bare minimum in order to get there.
If you start to incorporate merit raises into your average pay raise schedule, it changes the game. Your hardest workers will start seeing concrete results from their efforts, and this will light a fire and keep them wanting more.
What’s more, merit raises also represent a greater opportunity for advancement within your company. Once you award your best employees with merit raises, it demonstrates that you appreciate and recognize them for standing out amongst the others. In turn, it will get them thinking about accepting more responsibilities to help your business grow.
Final Thoughts
While there are many effective ways to boost employee motivation, pay increases are the most essential. In addition to your average annual raises, show your appreciation by giving merit raises as well. You won’t be disappointed by the results.
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