Inflation has hit American families hard over the past few years. We’ve gotten some good news lately, but there’s still a long way to go until many people feel that everyday essentials are “affordable” again. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November 2022, down from a 7.7% gain in October of the same year and less than the 7.3% increase economists were expecting. It then fell to 6.5% in December of 2022. Year-over-year CPI inflation hit a 40-year high of 9.1% back in June 2022, and has thankfully been trending lower now for six consecutive months.
However, 6% or 7% is still a lot – too much for many of your team members. That’s not all; rent prices are up, along with the price of other everyday items. For example, the price of eggs is up 60% from last year! Also consider the fact that 64% of Americans report living paycheck to paycheck. This becomes harder and harder to do when cost of living increases. It’s worth noting the percentage of shift workers living paycheck to paycheck is much higher than the national average. Your team members can’t wait for rent and eggs to go down to meet their families' basic needs. This leads many of them to look to their company to fill in the budget gaps.
With the cost of living up, you probably have employees asking for a raise. It’s easy to quickly say no, but you shouldn’t brush these requests aside without giving them significant thought. For one thing, your employees who need to make more money may decide to leave and go elsewhere in order to make ends meet. In a study from the Pew Research Center, 63% of respondents cited low pay as a key reason they left a job in 2021. The cost of recruiting, interviewing, hiring, and training a replacement will likely cost just as much as the raise. As well, it’s nearly certain you have hardworking, dedicated employees who deserve a raise!
Tracking Performance and Progress With SubitUp’s Employee Management Software
By now, you’re probably well aware that SubitUp offers a fantastic way to create schedules. There is so much more to love about our employee management software than that, though. In fact, we recently released a new employee review tool in SubitUp that is ideal for handling the delicate topic of pay increases. That is because it makes it possible for you to:
#1 Get Direct Feedback
An employee review is far more than a manager telling someone what they’re doing well and where they can improve. It’s also a time to boost employee engagement and have open, honest conversations. The best approach to find out what each of your employees need and want in order to do their best is to simply ask them! A one-on-one conversation between an employee and their boss goes a long way for both sides to be happier.
Some team members may need a raise, but aren’t comfortable bringing it up. It may be embarrassing for them that they can’t easily pay their bills. That doesn’t mean they are not considering looking for a new, better-paying job though. It is important to get direct feedback about whether or not they’re happy enough with their salary to stay, and have it be done in a way where the conversation is discrete and supportive. An employee review offers the opportune time for this discussion.
#2 Determine Who Deserves a Raise
Let’s say you’ve now given each of your team members a one-on-one employee review. Not surprisingly, many of them (if not all!) would like a raise. The question now becomes, who actually deserves one? And how can you back this up with numbers and data, not just gut feelings? SubitUp helps you with this as well!
In our software, you can track each team member’s progress, improvement, scores, and certifications in order to determine whether or not they deserve a raise. Our software aggregates staff performance data to use in the decision-making process, like:
- Average shifts worked per month
- Certification statuses and upcoming expirations
- Attendance records and time clock data
- Add/drop/swap shift history
With SubitUp, you can rest easy knowing your best employees are being rewarded. Plus, being able to back your decisions up with concrete facts goes a long way towards breaking the news to team members who haven’t earned a raise. Be sure to give them goals so they know what they can do to earn a pay increase in the future.
Once each employee review is complete, it is saved to the employee profile so managers with proper permissions can access it. This way, you will always have a sense of that employee's performance and growth track. Next time you have a review with the individual, you’ll know right away whether or not they’ve made improvements on their weaker areas.
Other Ways SubitUp Helps
The best way to be able to give raises to those who deserve them is to cut unnecessary costs. Your organization’s shifts being assigned aren't random. Employee prioritization puts your rock stars on the schedule first. When you have your best team working the right shifts, both individual and collective productivity skyrockets. There will be less dropped shifts and less coverage gaps, meaning less unforeseen OT costs as well. Better scheduling, made possible by a scheduling software that leverages AI technology, makes it possible to stay within the payroll budget and therefore have the extra funds to award worthy raises. You won’t just know who deserves a raise – you’ll have the wiggle room in the budget to actually do so!
Fostering better performance reviews is only one way we can help you keep labor costs down. We'd love the opportunity to show you exactly how our software can transform the way your department manages your team and enables you to reward worthy team members with a higher pay rate. Contact us today for a consultation to learn more about what we can do for you. Be sure to ask how the University of South Carolina has saved over 1.5 million dollars by implementing SubitUp!
