Best Practices for giving a raise
This Knowledge Base Article (KBA) provides companies with strategic alternatives to increasing a Remote Team Member's traditional hourly rate.
Consider taking on the platform fee as a way to give a raise
Before you give a traditional hourly raise, read below. Taking on the platform fee for your Remote Team Member is a highly effective alternative.
- By taking on the full platform fee, it increases your payment by 10% and increases the payout to your team member by 10%.
- Their hourly rate does not change, but the amount they take home will increase, effectively giving them a 10% raise.
Psychologically, this is a better approach for the team member. They are getting paid more and they do not see any funds taken from their account, reducing the potential for team member churn.
For more details on how this feature works, review our full guide:
Learn how to take on the platform feeConsider Paying Commissions Instead of Giving A Raise
Another best practice is to create a commission schedule based on KPIs or on specific activities. By giving a bonus instead of an increased payment, if things go bad, you can easily remove the bonus structure. It is difficult to reduce hourly wages once they are raised.
Example 1: Tied to KPIs- KPI: Residents on a lease (not month to month) > 92%.
- Scenario: A Lease renewal specialist has 94% of residents on a lease.
- Result: A bonus is paid out monthly of $125. If it falls to < 92% of residents on a lease, there is no bonus.
- Activity: Number of meetings set.
- Result: A bonus of $5 is paid out for each meeting set.
For ideas on KPIs, download our free KPI guide.
Download KPI GuideNeed Some Help?
If you need guidance on the best way to structure compensation or retain your talent, schedule a 1:1 consultation with your account manager.
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