How do you reward employees fairly but reasonably? In this video, I talk about how to compensate employees with pay raises, profit sharing, and employee development programs.
Many employers think they have to give a raise to their staff members every year. While cost-of-living adjustments (COLAs) make sense, significant yearly pay raises can take a toll on your business.
Think about why you built your team in the first place. Your staff allows you to serve more people and earn more money. Naturally, you want to reward employees for helping your business succeed.
But do you give a raise whether it’s warranted or not – just because it’s time? Offering guaranteed pay increases at set times can lead to overpayment, a drain on your business, and resentment.
Keep in mind that there are many ways to compensate employees. One way is to do an outcome assessment and give a raise based on merit. Show your appreciation when a team member surpasses expectations and delivers exceptional results.
Are you providing opportunities for your staff members to grow and develop professionally? Recognize the unique strengths and interests of your team members. Reward employees who try new tasks. If someone takes something off your plate, you should pay for the freedom it affords you.
You might also consider a profit-sharing model, so that as your business does better, your employees do better as well. Profit sharing boosts employee engagement; your staff takes ownership of their work because they have a vested interest.
In whatever ways you choose to compensate employees, make sure you’re not coming from a place of shame, guilt, or fear of losing them. Look at compensation as a value exchange – your staff provides value to you, and you provide value in return.
We Will Help you:
- Remove the focus blocks that stop you from getting traction on new patient growth.
- Create a Business Lifestyle Intention Sheet that will allow you to reverse engineer the exact amount of money you need to make, the exact amount of patients you need to see and start to reduce the gap on your dream lifestyle. (not a cookie cutter method).
- Create a plan to reduce your hours by 33% so you can commit to yourself, your hobbies and your family again without sacrificing revenues.
Show you the systems you need in your practice that will allow you to raise your prices and grow your profit margins by over 25%.