How do you plan to give a raise to your employees? This is a very important question that is not going to affect your financial planning but your relations with your employees. Let us presume you are an employee who has worked very hard to help the business earn more profits.
You expect a raise and feel that it is the right way to recognize your services. You do get your raise but it is given as if the employer is doing a favor for you. Would you be happy? Would you be interested in working for such an organization that pays more money but makes it very clear that there is very little value attached to your hard work?
You may not quit the work immediately because of the extra cash that you are getting. However, there may come a time when you may move ahead if you find a company that pays high and values your work equally. If you want to maintain employee relations better, you must understand the limitations of money.
Beyond a certain point, incentives and commission is not going to work. Expecting your employee to ignore family life and work for you for cash alone is not going to work. How about organizing a trip for all the family members of your employees? Throw a party in a fancy restaurant and invite all the family members. Collect the personal e-mail IDs of the spouse of your employees and invite them personally. Make them feel valued.
The fact that their spouse has ignored family life for your business should be remunerated. If you adopt such a generous and benevolent approach, you may even get away without offering a very significant raise. There are numerous instances where organizations have won the loyalty of their employees and improved employee relationships by taking such proactive steps.
Do not hide from such activities. You are expected to pay for services and value them as well. It is one thing to say that your employees are part of your family. It is a different thing to treat them as such.