12 March 2024

9 Awesome Ways to Decide Who Gets a Raise at Work

By Ronald Smith

Let’s talk about how to decide who gets a raise. I’ve got some fantastic methods for you that will make this tricky task a lot easier. So, buckle up and get ready to learn!


Performance Review:

Evaluating performance is a great way to determine who deserves a raise. Looking at how well someone does their job, how they meet deadlines, and their overall work quality can give you a good idea of who should be rewarded.


Skill Development:

Taking into account employees’ efforts to improve their skills and knowledge is crucial. If someone is constantly learning and upgrading themselves, it’s a sign that they are committed to their job and deserve a raise.



Working well with others is essential for a successful workplace. If someone goes above and beyond to collaborate and support their co-workers, they deserve recognition and a chance for a pay raise.



Recognizing employees who take initiative is important. If someone is always coming up with new ideas, seeking solutions, and taking responsibility, they should be rewarded for their proactive attitude.


Leadership Skills:

Leadership qualities are valuable in any organization. Identifying employees who demonstrate excellent leadership skills, such as guiding and motivating their team, can make them strong candidates for a raise.


Client Satisfaction:

Happy customers are the foundation of a successful business. Acknowledging employees who consistently provide great customer service and excel at satisfying clients is a surefire way to determine who deserves a raise.


Company Loyalty:

Staying committed to a company over the long haul should be recognized. Employees who have shown dedication and loyalty can be rewarded with a well-deserved raise.


Extra Responsibilities:

If someone takes on additional responsibilities without hesitation and manages them effectively, it’s a clear sign that they are an asset to the company. Recognize their efforts with a raise!


Overall Contribution:

Finally, consider an employee’s overall impact on the company. Those who consistently go above and beyond their regular duties and make a significant contribution to the company’s success should be rewarded accordingly.

So, there you have it: nine amazing ways to determine who deserves a raise. Remember, it’s all about evaluating performance, recognizing effort, and rewarding excellence. Keep these methods in mind, and you’ll be on your way to making fair and informed decisions about pay raises for your employees. Good luck!

9 Awesome Ways to Decide Who Gets a Raise at Work

Every company has its own way of measuring how much its employees contribute. Some focus on what they actually achieve, while others consider things like loyalty and the number of hours worked. They all want to figure out whether an employee deserves a raise or not. But how can a business decide which approach is best for its own workforce?

To help answer that question, we asked a group of successful entrepreneurs from the Young Entrepreneur Council (YEC) for their insights. We asked them:

What’s your favorite method for deciding when to give employees a raise, and why do you like that approach?

Here’s what some of the YEC members had to say:

1. Take Industry Standards into Account

When it comes to determining salary increases, I always start by looking at similar roles and the salary ranges in our industry. It’s important for us to be consistent with, and even a little above, what other companies are doing. There are a few key factors that I take into consideration. First, I look at how long someone has been with the company and their overall job performance. I also consider the value they bring to the company, both directly and indirectly. It’s not just about the tasks they complete, but also how their work impacts the company as a whole. Attitude and how well they work with their colleagues are also major factors in deciding on raises.

2. Think about the Impact of their Work

When I’m evaluating employees, the most important thing I look for is the value they bring to the company. It’s not just about keeping busy or increasing profits. It’s about building strong and lasting relationships with clients that help the company thrive and grow. Besides that, there are a few other factors I consider. I look at how long they’ve been with the company, their commitment to doing their best, their ambition to grow, and much more. – John Hall, Calendar

3. Consistency is Key

Over time, employees can change. They might start off excited, but eventually they can become bored and lose consistency. In my opinion, a raise should be based on a person’s performance and how consistent they’ve been over time. By looking at their attendance, performance, sales, attitude, and even their growth, you can determine if an employee deserves a raise based on their passion and hard work over the years. – Daisy Jing, Banish

Step 4: Take a Close Look at Their Quarterly Reviews

When it comes to deciding on pay raises for our team, we take the time to analyze their quarterly reviews from throughout the year. These reviews are essential because they give us valuable insights into our employees’ performance. We evaluate their reviews based on a point system, where each employee receives a score. At the end of the year, these scores determine the size of their raise.

What I appreciate about this approach is that it ensures our employees are rewarded for their hard work and dedication. By linking pay raises to performance, we create a fair compensation system that motivates employees to give their best. This strategy encourages a culture of excellence and provides an incentive for continuous improvement.

At Smash Balloon LLC, we believe it’s crucial to recognize and acknowledge the efforts of our employees. By relying on their quarterly reviews, we can make informed decisions about their compensation, ensuring they are rewarded accordingly for their contributions to our company’s success.

Step 5: Establish Clear Assessment Metrics

6. Taking a Holistic Approach to Performance

When it comes to determining pay raises, we consider an employee’s overall performance, loyalty, and tenure. If someone has been with us for a long time, we know they value our organization and team. So, their length of service does play a role in deciding pay increases and other benefits they receive. It’s important to us to recognize their commitment and dedication to our team.

7. Recognizing Seniority and Work Quality

Pay raises are important for every member of our team. We have a system in place that takes into account the employee’s seniority and the quality of their work. I like this approach because it’s straightforward to calculate, and it treats all employees fairly. We believe that hard work and dedication should be rewarded, and our strategy allows us to do just that for our team.

8. Conducting Regular Wage Assessments

Periodic assessments of my wages and getting raises can really boost my motivation at work. It’s important for my employer to plan these assessments so that they happen at least once a year. The more often they happen, the better. They should also make sure to have flexibility to reward exceptional performance within a year. ~ Reuben Yonatan, SaasList

9. Measure Things Fairly and Subjectively

Performance evaluations should include both objective and subjective components. The objective part is for measurable things, like numbers and goals. The subjective part is for things like working well with others and being a team player. By combining these sections, an overall score can be determined, which can then determine if I get a pay raise. This way, the process has some structure and organization. ~ Andrew Schrage, Money Crashers Personal Finance