We've established that timing is everything, and you already know that most organisations at least review (if not increase) their pay every year.  In this blog post, I will discuss why a pay review is so important:

Attract Talent - To attract the talent you need, you must stay competitive. When potential employees see you advertising competitive pay rates (not just the word “competitive”, which honestly can mean anything) they can tell that you are committed to fair pay and they are more likely to choose your company over others.

Retain Top Talent - In today's competitive job market, regular, predictable salary reviews might just be your secret weapon in retaining your best  people. When employees see a commitment to fair pay and know when and how it's going to be reviewed, they’re more likely to stick around. On top of this, turnover costs often outweigh the cost of salary increases, which means there's a cost saving in keeping your people.  And, of course, keeping the same dedicated people in your business ensures continuity for both you and your clients.

Boost Motivation - Beyond the obvious financial boost, salary reviews help reinforce that hard work and dedication don’t go unnoticed. Logically, we know the connection between pay and motivation, but a recent study at Glassdoor found that as many as 45% of employees were motivated to work harder when they received a higher salary. This is because salary reviews done well generally leave employees feeling valued, recognized, and engaged.  It's a positive hit to both heart and pocket that motivates people to work harder.

Increase Productivity - Happy employees are productive employees, and when your team feels their efforts are valued, they’re more likely to feel connected to their role, boosting their job satisfaction and contentment at work. The positive environment this creates can drive productivity and contribute to your team’s and your business’s overall success. Don’t just think about salaries as money spent; a well-thought out salary review can help your company show its appreciation to your top performers, which can generate much more than profit.

My next blog is going to be about different approaches to increasing pay. If you want to know more then follow me, or reply in the comments and I’ll take you through some of the key things that make it easier for you.