How often do you give raises? The art of raises and rewarding your employees for deserved behavior, but avoiding running the risk of overly rewarding them and making them think they deserve another raise before they’ve earned it.
My solution was to give raises every 90 days to full-time people and every 180 days to part-time. I realize that this is a powerful strategy, however there were a few kinks to work out. Someone full time will feel a sense of moving up in the world if they are always getting raises. Keep in mind that you need to set their starting salary a little lower for them to merit raises. Also keep in mind that they need to merit the raises with an increase skill set and hard work. Most people are very short sighted which is why 90 days raises are so effective. Google uses this strategy by the way! After a year or two, the raises will become a little smaller. You also have to give people more responsibility otherwise they will not feel useful. Letting them learn new skills is very important to many employees who want to feel like they are growing, while others specifically do not want to grow at all.
The flaw in my system is that my part-timers seem to put in as much time as they feel like. This is not good for long-term employment. Those who are not reliable in their hours will not last long, or will not be that valuable as employees. It seems more sensible to have a starting wage while in training. Then have them put in 400 hours before getting a raise. If they are slow pokes and do five hours a week, it might be two years before their first raise. But, this way the raise is based not only on how much they learned and produced, but how much loyalty and hours they put in too which is a very important factor.
Someone who sticks with you in the long run is valuable, especially when combined with versatile work skills. So, reward people for everything.
These days with millennials, especially in India, there is a lot of job hopping. You cannot get ahead in any career by job hopping. But the time you half know what you are doing, you’ll be at the next company. For managers, knowing they have someone good to do a job is important. How well will they know your work if you hop from job to job? If you are dealing with perpetual job hoppers, I would give them a lower starting salary simply because you’ll have to invest time hiring and training them only to have them quit. Let them pay for this out of their salary and reward them later on if they stay.