The Staff Pay Review Process
How would you rate your current pay and performance review process? Clear, structured and easy to follow? Or unclear and ambiguous at best?
Let me tell you, if done right, this process can actually be a powerful tool for building a thriving team culture that drives business growth.
Now that we’re well into the new financial year, pay reviews, performance assessments – they're all on the horizon. But how do you ensure that you not only set proper expectations for remuneration but also encourage a high-performance culture whereby each and every team member is motivated and inspired to progress their career?
First things first, I get it. Many business owners shy away from this process, put it in the “too hard” basket or run a half-baked process due to the money and culture-related aspects involved. However, nailing the performance and pay review process can do wonders for your company's culture. Trust me.
So, let's talk strategy.
One of the most significant hurdles is establishing a transparent and accountable pay and performance review process that leaves no room for confusion.
Transparency & clear communication is key here. Begin by setting up a structured performance review process that focuses on the year ahead. Talk with your team members about their aspirations, the skills they want to develop, and the roles they envision moving into.
Empower your team members to actively participate in crafting their own specific growth roadmap. From learning new skills to transitioning into higher roles, involve them in building a robust 12-month plan together.
The next step – tie their career aspirations and progression to monetary outcomes. Let's say an engineer wants to become a senior engineer. Collaboratively create a game plan with them for achieving this goal, broken down into quarterly milestones. Then, transparently link their pay rise to these achievements.
Imagine telling an employee, "If you achieve these goals, we'd be delighted to offer you a 10 or 15 thousand dollar pay increase." This clarity empowers them, and it's clear to them how their efforts over the next 12 months directly impact their financial growth.
Now, infrequent & ad-hoc performance reviews can lead to lost staff development opportunities and diminished staff motivation.
The solution here is to shift your mindset – annual reviews are out; regular check-ins are in.
Quarterly, or even better, six-weekly one-on-one catch-ups foster continuous growth and engagement. These conversations keep the lines of communication open, facilitating real-time progress tracking and adjustment.
The key to successful pay and performance reviews is making it known that each staff member is responsible for their own career progression. The business owner facilitates, but the individual owns it. They are the masters of their own destiny.
So, the pay & performance review process isn't a mysterious ritual but rather a structured roadmap to growth. Transparency & clear communication transforms pay reviews into a strategic partnership, fostering ownership and accountability.
As business leaders, we're the conductors of this process. We align aspirations with rewards, enabling each individual to compose their future. The result? A harmonious blend of professional growth, deeper level skills, and a high performing culture.
So, remember - engage your team, link goals to outcomes, and keep the conversation going. With the right strategy, you'll see the power of transparent and purpose-driven pay reviews, transforming your team into a dynamic force that propels your business forward.
If you’d like to learn more, please take a look at my most recent podcast episode on this exact topic:
Click here for the podcast episode.
Click here to watch the video.
Josh ‘Pay Review’ Stone
PS: If you’re interested, here are 4 ways I can help you right now:
- Join the Leaders In Engineering community designed specifically for leaders and business owners
It’s our Facebook community where leaders and business owners are learning the strategies and leadership skills to step up and thrive right now – Click Here to join
- Download our FREE PDF guide – “How To Build A High Performing & Highly Profitable Engineering Team”
Learn the skills to get the most out of the people around you. Build a high performing team that generates incredible profits and allows you to have more fun and to spend more time with the people you love – Click Here
- Book in a Catch Up
This session is designed for you and I to touch base, to get to know each other a little better and to really look at where you are now, where you want to be and then we’ll make a plan together for how to get you there! – Click Here
- Work With Us
Join our training program designed to help you focus on the core areas of growing your team, your business and yourself in the process. Together we'll work on winning work, business development & client relationships. We'll look at strategies for team performance, project performance as well as your leadership skills to motivate and get the most from the people around you. We'll also focus on your growth as a leader, effective delegation to those around you and only focusing on the strategic activities that move the needle and make the biggest difference. - Just send me an email at [email protected] with the word “PROGRAM” and I’ll get you some more information.
