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James Schramko here, and today’s tip is around pay reviews.
Annual pay reviews can be a real problem in your business, and that’s because your team might build up anticipation and anxiety and even entitlement around this annual review. Instead, how about, if you have a great performer, reward them early. If you got a bad performer, then tune them up and weed them out, certainly well before you get to a year.
So we don’t have annual reviews in our business. We pay based on merit, not how long they’ve been there. And especially if someone nominates somebody for a bonus, then that really helps. And you don’t have to adjust the base pay. Sometimes, just a really well-placed gift that’s relevant to that person will get you a better result than if you just adjust the base salary.
So that’s why annual reviews are probably a bad idea. Go with an ad hoc, set a diary calendar alert to check your pay every month or two, and see if you can tune your team that way.