January is when we usually give our OFS team raises.
Dan (my business partner) and I talk about each OFS in our team at the end of the year. We base their raises on their work performance, how well we did that year, and what we can afford.
When hiring a new OFS, we don’t tell them they’re guaranteed a yearly raise. We just tell them that they get raises based on their work. So when January comes, they don’t know what to expect. All they know is that if they did well and we had a good year, they’ll get more.
They only find out how much they’ll get when Dan and I email them. In that email, we thank them for their work the past year and encourage them to do even better this year.
We notice that most of those who received raises do even better or maintain the quality of the work. A raise is a clear sign that your work is appreciated, and nothing motivates people more than feeling appreciated.
This is rare, but there have been times when we didn’t give some team members their raises. We email them to explain why they didn’t get it this year.
This gives them a chance to explain their situation. Then we can ask them questions. Like, did they have health or family problems this year? Are they unhappy with their work? Did they take on another job?
After that conversation, their work improves. It’s so effective that I rarely repeat this with the same people.
So how much do we give?
Typically we give between $25-$75/month raise.
If they’re paid hourly (we have very few paid hourly) we figure out how much we would give and how many hours they work and we divide it into an hourly raise.
There have been times we give a bigger raise, like $100-$200/month. These were exceptions based off exceptional work and dedication throughout the year.
Do you have to wait for January to give your OFS team a raise? No. We sometimes give them out in the middle of the year if someone is doing really well for us.
John