When Raises Go Wrong
There are moments in ownership where money feels like the fastest way out.
A team member is frustrated, the systems feel messy, performance is slipping, and your brain goes straight to the same solution: maybe I just need to pay more. Maybe a raise fixes the attitude, smooths out the chaos, and gets everyone back on track.
I have done this, and most owners have too. It feels generous in the moment, but raises used to avoid discomfort often train the practice to stay broken and get more expensive at the same time.
Here's the shift I want you to make. A raise should never be the tool you use to calm down a tense conversation or buy yourself temporary peace. Pay should be tied to value and clarity. When you do that, you stay fair to the team and you protect the business.
Here are a few tactical takeaways you can use this week:
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Reward value, not time
What do they do now that they did not do at their last raise? -
Do not pay first
Let the responsibility happen consistently, then raise pay. -
Be careful with titles
No ownership, no title. -
Know the market
Check local pay ranges before you say yes or no.
