What would motivate you more: A raise once every three years, or a raise once every three months? Did I really need to ask you that question? A recent trend finds employers providing more frequent raises for a good number of reasons. Most of all, it seems to work!
Regardless of business, industry or geographic area, all employers need to attract and retain the best-qualified, most productive and dependable employees. And, so, ways to do just that are always under review. Many employers continually experiment with employee-motivation techniques, from “Casual Friday’s” to “Departmental Adventure Outings” to the old-fashioned “Employee of the Month” awards. Smaller companies, especially, need to find ways of holding on to their “keeper” employees.
A recent trend in employee motivation is to provide more frequent raises, promotions or bonuses. The reasons for this are many. First, studies show that quarterly rewards are an unusual, and attractive, recruitment tool. Second, many believe that more frequent “encouragement” boosts employees’ “Three E’s” – Excitement, Engagement and Effort. Third, the practice of more frequent rewards lets poorer performers know how they are perceived and “where they stand” earlier, and thus provides an impetus to the employee either to correct the shortcoming or to leave, before problems fester.
Employees of Shutterfly, Inc. – the popular internet-based image publishing service based in Redwood, California – are eligible for bonuses four times a year and salary raises twice a year.
Those who work for Epsilon, a provider of loyalty marketing services and programs headquartered in Plano, Texas, receive a salary review every six months for their first two years. The program has become a big selling point when interviewing prospective employees in good part because many recent hires can attest to having won all four of their first semi-annual raises, and at least one promotion, in their first two years of employment.
Quarterly raises of 2% to 15% are the norm for employees of Zulily, Inc., a web-based designer and retailer of clothing for moms, babies and kids, headquartered in Seattle, Washington.
The practice of more-frequent employee “rewards” is not yet widespread. A recent study by benefits-consulting firm Aon-Hewitt of 1,147 companies found that only 5% engage in the frequent-rewards practice. But many think that, if it works, it will be seen more and more, as the competition for top-notch talent, attitude and engagement intensifies, which it most surely will.
Show your value, and collect the job security and employee rewards you’ve earned. Makes sense to us. In fact, that is what SkloverWorkingWisdom™ is all about.
© 2014 Alan L. Sklover. All Rights Reserved. Commercial Use Prohibited