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Pay increase evaluations5/26/17
About employee management... We are a small firm, very small. I have focused more on automation for the sake of security, predictability, dependability etc. as I'm sure many of you have. I've got one great employee at the moment and I'm concerned about a trend thats begun. Because of his progression both in skill and aptitude I've given 4-5 raises in the last 2-3 years, which seems like a lot to me. He deserves them as I see it but it seems that the way the last couple raises came about have created the issue. I gave a raise when his enthusiasm dropped. Sounds funny, I know. But his work ethic has been unparalleled for years now and so when he started slouching it was noticed. He worked like an owner would most of the time but then it just stopped. He still performed his duties but the attitude had changed and after I gave another raise (out of fear of losing the best employee I've ever had) he was back to his regular exceptional worker self for almost a year. So over the last month or so this game has started again. I honestly believe hes due another raise but I don't want to do it for fear of rewarding wrong behavior,; but don't want to lose a great employee. Maybe a regular scheduled assesment would have prevented this? any suggestions would be great, thanks.
Have you asked him what is going on, what his long term goals are, can he be satisfied. i had one like this and it worked for a while. once he left everyone else stepped up further, he was a great guy yet better we moved on.
Something you may consider doing is giving this person bonuses rather than periodic raises. This approach does not lock you into a long term increased cost structure. Eventually this economy will slow down and you both will be in better shape if your costs are under control.
Wage increases create a short term bump in morale but it does not take long for this morale effect to dissipate. Wages become synonymous with value and it is very easy to assume you are being paid on the margin of your contribution.
Bonuses also get the spouse's attention.
I agree with the bonus theroy.
Beware some employees get thinking they are going to be made a partner. If he is thinking that it can get very difficult very quickly.
I agree with James E. McGrew. You have proven that more money does not buy a happy employee. Find out what is the issue. It may not have anything to do with the work.
Bonus' sound good. But the reality is that even if you do pay a bonus, how is it calculated, will the employee feel it was enough and how does the bonus relate to everyday performance?
We have all had to deal with this situation, and for me, I let them go and wish them well. We always come out better as other people step up to the opportunity to be a leader.
It is better for you to determine the future of your business and this economy is not really that strong. Look at the housing starts and you will see that we have not had a full recovery.
Well I thank you all for good responses , I think bonus in lieu of raises could have been good. But then I caught him doing side work on the weekend without asking first and when confronted about it didn't go well. He packed his stuff up and disappeared at lunch time while I was out. Having a hard time keeping good help. We are so small that I only have a couple employees at a time. Short handed now for sure and it seems everyone is busy and has the same problem.