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If you look for computer monitoring tools on a search engine, you’ll see a range of tools designed to keep tabs on employees. These typically include some worrying features, such as the ability to track someone’s activities without them ever knowing. But how legal is this, and can a boss get into serious legal trouble if their monitoring is discovered?

What Kind of Monitoring Can Happen?

Employers will typically monitor employees for one of two reasons. For one, they want to protect business assets. When a company owns a building and gives resources to their employees, they want to ensure nothing gets stolen or damaged. This includes tracking the location of employees and products but can also mean monitoring email to prevent data leaks and breaches.

Another reason is that the boss wants to monitor the productivity of the employees. This involves spying on what the employee is doing during work time. This can include keylogging, webcam spying, and monitoring active applications.

How Legal Is the Monitoring?

When breaking down how legal this monitoring is, there are many variables involved. For example, different countries will have different ways of approaching this grey area.

You’ll find that laws typically side with the business when it comes to protecting assets. For example, if a business logs emails made on its work email accounts to prevent information leaks, that would be legal. Similarly, if a business wants to use CCTV to protect against thieves, they could.

Things get a little murkier when it involves spying on how a worker uses their company computers. Typically, if an employer can see what you’re doing by watching over your shoulder, they can log it. This includes the websites you visit and the applications you use.

The grey area comes in when the employer hides these tracking apps from the employee. In most U.S. states and some countries like the UK, it’s totally legal for a boss to install monitoring software without the employees knowing. Connecticut, Delaware, and some countries demand the employer tell their workers what’s being monitored and for what purpose.

Employers also enter a grey area with GPS tracking on equipment. They can argue that installing GPS on a laptop helps retrieve stolen goods, but it could also be used to track employees after work to see what they do. As such, an employer may need to put forward a strong defense for GPS monitoring – that is if such a thing is even legal in the country they operate in.

When Monitoring Goes Too Far

So we can see there’s a good chance that employees in your country can and will monitor workspace equipment. However, this doesn’t give them free reign over what they can monitor and store about you.

For instance, things get illegal when the employer tries to push their monitoring into employees’ private lives. For instance, if you use a work PC during a break to check your email, the employer can legally see that you visited your email provider but can’t go through your emails.

Similarly, any monitoring that does occur has to have a business reasoning behind it. If an employer monitors your phone calls to ensure you’re meeting company protocol, that’s acceptable. However, if an employer monitors someone with a speech impediment and saves recordings to share with his friends for a laugh, that’s illegal.

Monitoring Made Legal

While employee monitoring software features may seem intrusive, the truth is that employers can legally monitor a lot. As long as it’s related to the operation of a business, employers have a lot of freedom; however, as soon as it breaches into unprofessional spying, the employer works against the law.

Do you think employers should inform their employees of monitoring software by law? Or is it an effective way to prevent misuse of property in the first place? Let us know below.

Simon Batt

Simon Batt is a Computer Science graduate with a passion for cybersecurity.

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Employee Motivation – Why Recognition Is Most Important?

Employee Motivation is the key to happy and satisfied employees. A happy workplace has higher productivity, generating higher revenue in return. Employee productivity measures retentivity and empowers employees with a happy workplace and collaboration. Employers today develop various employee motivation ideas to motivate team spirit, social networks, and interaction at work. They also encourage picnics award ceremonies, star employee appraisals, and many other strategies, but we often ignore that the simplest strategy is employee motivation. Employee Motivation can be through awards, social team outings, praise, and points for high performers. Recognizing and awarding high performers is the best tool for employee productivity and performance.


Do you know how employee appreciation catering to any kind of work the employee does can be great for employee motivation? Praising employees for meeting deliverables on time and completing work efficiently before deadlines is important. Appreciate the employee and make him feel how well he is doing. Appraise him. Identify high performers and mention their outstanding efforts and contributions and how they are valuable assets to the organization.

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Though not possible to measure on a scale, it is a powerful tool for creating a team environment. This encourages employees for high performance, higher retention rates, higher productivity, and reduced expenses to inattentiveness at work, safety issue, or job downtime. Recognizing employees for the work they do only cost some time and effort. It’s work that will pay you back as an employer. Once you initiate this program, you will see it bears your results.

Here are some benefits of employee recognition at work:

Higher productivity: Employee productivity enhances and often improves when an employee’s high performance is recognized and rewarded.

Reduced rework: Increase efforts at work in a way that reduces work errors and, in a way, reduces rework at work. It enhances employee productivity, and high performance is, in a way, delivered.

Reduced cost: Ad work and rework are reduced, unwanted costs are reduced, and the company can expect a better return on low company expenses.

They no longer remain job hoppers, stick to one job, and do not leave or switch to other jobs.

Improved performance ratings: As employees perform well, the company gets better returns, and the managers are happy with the work performed. They give higher and improved ratings to employees, and overall yearly appraisals of each employee are better.

Monthly hikes: Better performance appraisals result in performance pay, and hikes monthly and yearly produce high-performing, satisfied, and happy employees.

Employee Motivation Techniques

Gifts and Prizes and Awards

Awarding your employees, sending them valuable gifts on Christmas, and cutting team cakes on birthdays are good motivating ways for employees. Employees continue working with equal zeal and enthusiasm if their work gets applauded. This is why companies are paying special attention to rewards and recognition at work.

Appreciation and recognition

Appreciation and recognition are the two important and major factors of employee motivation to keep striving towards their goals at work. Employees aim for higher performance and desire recognition through salary hikes and pay scale increases. Appraising employees before friends and colleagues is the greatest motivation to do better anytime.

How do employees get demotivated?

Here are some ways employers are unaware of, but employers must know that this demotes your happy and dedicated employees.

Over-supervision by managers

Too much supervision by managers and supervisors is demotivating for employees. This makes employees feel demotivated and over-supervised. They cannot enjoy absolute freedom at work and feel very demotivated. Such employees are job hoppers and change jobs to more satisfying and happy workplaces suited to their needs.

Low payscales

This is another demotivating factor for employees. They work hard each day, 24 *7, struggling to meet deadlines, struggling to work harder, but what they get in return is very low pay for high and long working hours day and night.

Poor appraisals

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Why is this so important?

Well, for all, promotion and recognition are the key -regardless of where they happen to be in the food chain, is recognition hungry. By praising their high performances, you will get the best way to motivate them, push them, and bring out their best and hidden talents.

Recognizing the power of recognition

You should never ignore the power inherent in employee recognition.Motivating at the right time and on track is the most evident way to motivate employees.

When an executive recognizes somebody’s effort, its value is enhanced manifold mere email acknowledgment, gems to employees, or praise in a meeting might be a long way altogether. Even if you shake hands with them or call for a team lunch, you never know how motivating it might be. You may not necessarily need to give away awards and prizes – especially if your employees are different and remote to any location. The key is the find easy and simple, and accessible ways that work for your team. Find something that will be the best way to make them realize their good work, which has longevity and helps in the long run.

You’re part of a team and don’t want to lose your individuality.

Team appraisal and quotas are important, but an employee and accomplishments more desire an employee and accomplishments more desire recognition for individual work. The people must also be applauded above and below you as an employee. Anticipating that they will be recognized for completing a task well is a strong motivation for an individual to “go the extra mile.”

Providing recognition for accomplishments serves to raise self-esteem and reinforce their value both to the company and employees, improve their personal image at work and within colleagues, and feel valued and an asset to the company.

Recognition is important, but so is the reward.

Praise and recognition, though, have a limited life. At some point, you need to acknowledge the work of your workers and colleagues if you are an effective manager. While it’s important to encourage high-performing employees, if rewards do not come after such long hours of hard work, demotivation and laying off is the net result, and thus, overall productivity decreases.

Rewards come in all types and forms, tangible or intangible forms. Tangible rewards include visible gifts, cash vouchers, discount coupons, lunches, and dinners with the team.

But intangible rewards like promotions, salary, etc can be a high cost to the company. Doing something as simple as taking the employee to lunch to encourage team outings or giving promotions can be another intangible means.

The best thing to do is to have a direct connection between work deadlines and rewards awaiting work completion. Provide a monetary bonus for completing certain tasks. Short-term rewards, long-term awards, and awaited bonuses are some kind of employee motivation and greatly impact a high-performing employee.

Recognize employee achievement, and your work will leap results.

Make your employees feel associated with the kind of work they do, feel a part of the company, and feel like they are part of a team working towards high productivity. This, in turn, and results in high success parameters for the company. So whether it be a tangible or an intangible reward –a reward or recognition is the best reward for an employee.

Know Your Employee Better


This is a better way to understand from the employees what they exactly want, which can be better done. Encourage monthly employee feedback to help you understand what your workers want from where they work 24 * 7. Do they want a more ergonomically suited workplace? Do they want air-conditioned offices? Or, Do they want certificates or praise in meetings –what exactly do they want –tell them on an open feedback platform. Understand employee feedback to identify unfulfilled wants and needs.

Understand employee grievances. Also, understand why they are unhappy at work. Try to sort out their problems in the best possible way and reward each employee for performing well without grudges or grievances.

Relaxation and yoga camps

This has proved to have good results because yoga camps and gyms help employees to relax and chill out. This stress resolver is the best way to motivate employees and drain work frustration. Work frustration is reduced, and employee motivation is done – the team is motivated when they attend yoga camps or gyms in groups and teams in good team spirits.

Picnics and park visits

Picnics are a great means to recreate for employees and co-workers. It’s a place for social meet ups and to spread up team spirit. This is the best way to talk with all employees and feel empowered with better workplace teamwork skills and collaboration.

Sweets and gifts on occasions like Christmas

Gifts and sweets for Christmas employees are another way of employees motivating and making them feel happy. Sweets, gifts, and Secret Santa games are the best employee engagement games in the workplace.

What are the major HR grievances?

Employee layoffs: Laying off employees due to poor performance has been a big issue nowadays. This is due to the low profits of a company and poor productivity of low-performing employees. This is a major problem for growing IT organizations and needs to be resolved as soon as possible.

Poor profits: The company’s profits might deteriorate due to recession, poor employee performance, low resources to complete work, and lack of the right skillsets. This need should be realized and resolved as soon as possible.

Low employee productivity: This is another reason why HR needs to motivate and encourage employees to enhance employee productivity and enhance motivation through rewards and applause at work and within meetings.

Poor team effort: This is another important factor that needs to be met in organizations. Together we all can move mountains –remember that.

Poor appraisal: Main reason for grievances is poor appraisal and holding promotions. Employees want a hike in salary, and for that, they need good appraisals. They leave the job if they find that the manager gives them horrible ratings even after working 24 * 7.

These are some reasons one should not be demotivating our hard-working employees. Reward them, praise them, applaud them, promote them, train them –they will show higher retentivity at your workplace, and happy employees are the key to high work productivity! Remember, if you follow at least some of the above-mentioned steps for your employee motivation and help them in this little way, it is sure shot that they will be very happy. They will not have any grievances and will help make a better workplace and strive towards excellence.

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Fonemonitor: Track A Phone’s Activity, One Of The Best Monitoring Software!

We’re all concerned about how our children use the Internet, with which people do they talk/chat or exchange messages over Instagram/Snapchat, or where do they go when they leave the safety of our home. Is there a decent way to track their whereabouts without being noticed using their smartphone?

This is where FoneMonitor comes to offer one complete smartphone monitoring suite for Android and iOS devices, with a full web interface that can surely impress anyone. And the best part? It’s not only designed to work for tracking/monitoring the everyday usage of our children’s phone/whereabouts but it can be used for business purposes! You’re a company official and want to monitor the devices you have given to your employees? You’d like to be sure that your property (smartphone) is used as it was supposed to be? Then proceed and have a look at how you can make it happen with FoneMonitor:


FoneMonitor IS DESIGNED FOR LEGAL USE ONLY. It’s a safe Android and iOS device monitoring software that can be used only for the exact purpose of parental control of their kids, by employers to monitor the devices that belong to them as well as on which the employees work, or by you when you have a consent of the device owner.

FoneMonitor: Main features:

Monitoring of sent and received SMS and telephone calls with different contacts.

Easily spy on social app activities, including WhatsApp, Facebook, Snapchat, etc.

Control all installed applications, access the photos and videos downloaded from them.

See all the browsing activity, including the web address records.

Verify all photos, music, and videos downloaded on the target iOS devices.

Monitor notes, reminders and calendar activities to ensure reasonableness.

Follow the path of the device, know where the device has been.

Everybody who participates has a chance to win a GoPro Camera, so… why not give it a try??

FoneMonitor: how does it work?

What we have here is an effective phone monitoring application that can work with ANY Android or iOS device to gain access to calls and messages, GPS location, Keylogger, application registration and social media such as Facebook Twitter, Snapchat, and WhatsApp. In addition, it also supports Browser history monitoring, remote screenshots, geofence, and application activity during phone operation. You can even give access to photos, videos, calendar, notes and even downloaded music.

One more thing you can surely enjoy is its compatibility with Windows and Mac OS operating systems, meaning that you can use it from your PC while you’re at work and completely monitor the use of all the devices you have in your possession at once. Using this app you can track all activities on iPhone, iPad or other iOS devices of children and employees. The best thing is that you can monitor someone’s phone without jailbreaking or install any application on those devices. You can simply configure FoneMonitor easily from a browser to access the information anytime, anywhere, as long as there is a network.

Step by step procedure:

First we create a FoneMonitor account: Quite easy step here, you just provide your email address, real data, and your desired password.

Select the target phone: choose the application OS (Android or iOS), along with the name and age of the owner of the target device.

That’s all. We can now begin monitoring the desired device.

If the desired device is an Android smartphone, then we need to go on with one more step, in order to allow for the install of Unknown Sources.

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According to FoneMonitor there are 29 different types of data on the phones if you want to, while at the same time being free of malware and plugins. In addition, it has support 24 hours a day through emails or live chat. But what about its price?

Current price plans

FoneMonitor offers several available plans at this time, varying from 1 month, 3 months and up to 1 year. There’s also a Premium package for your choice. You can acquire FoneMonitor through its official website for a value of in its Premium Edition and in the Ultimate Edition.

FoneMonitor in everyday usage

First of all, if you want to experience the way FoneMonitor works in everyday usage, take the Demo Tour of the company, I promise it will surely help you understand most of its features.

After installing the app and settinp up your payment/account/package from FoneMonitor, you can easily begin using the app in its full extend. You can begin by checking ALL the Personal Information of the monitored phone, gaining access to SMS and iMessages, including the name, numbers, message content, time and attachments, as well as the option to play and download SMS multimedia attachments!

You can also view complete Call History with the name, phone number, duration, data and type of call, as well as record conversations in real time.

You can also check on several applications like WhatsApp, Facebook, Messenger and see all the tracks of the user, such as conversations, posts, download attachments, including photos, videos and voice files. You can even check the iCloud ID and you can access the passwords that were used in the target iOS devices!

The same happens with most of the other features of each phone. This means that you can gain access to all the multimedia files of the device, such as Photos, Videos, Audio files, Recordings etc. You also have the ability to preview videos using the “Video Preview” feature, or see all of their details like date, time etc.

FoneMonitor also allows the user to check on the History of the device’s browsing History, up to several months in the past, along with access to all calendar, reminders, dates and voice notes – if any. 1

FoneMonitor is a decent app that is aimed at SPECIFIC users. We have to stress out that this app is NOT intended for secret monitoring of others, illegal purposes or anything relevant. FoneMonitor IS DESIGNED FOR LEGAL USE ONLY. It’s a safe Android and iOS device monitoring software that can be used only for the exact purpose of parental control of their kids, by employers to monitor the devices that belong to them as well as on which the employees work, or by you when you have a consent of the device owner.

Having said all of the above, you can move on and – after testing it- you can decide to acquire FoneMonitor through its official website for in its Premium Edition and in the Ultimate edition if you own an Android phone. If you’re an iOS user then the price is per month.

UPDATE: FoneMonitor has started a VERY interesting QUIZ here:

Everybody who participates has a chance to win a GoPro Camera, so… why not give it a try??

Employee Volunteerism Can Improve Your Workplace

Volunteerism can positively affect a company’s culture and morale while enhancing brand perception. 

Employees often don’t have free time to pursue volunteerism, so they feel empowered and grateful when their workplaces help them give back to the world. 

Volunteer programs allow businesses to embrace corporate social responsibility and boost their appeal to customers, investors, and employees. 

This article is for business owners seeking creative ways to improve their workplaces and enhance corporate social responsibility.

Creating a company culture of volunteerism in your organization can help your community and the world while improving your business. Employee-sponsored volunteerism appeals to consumers who prefer doing business with socially responsible companies and employees who want to make a difference in the world. Whether you focus on climate issues, racial injustice, diversity and inclusion, poverty, or another concern, the shared mission can create a stronger workplace culture and help businesses embrace corporate social responsibility. 

We’ll explore how volunteering helps businesses and their employees and share best practices for creating an employee volunteer program. 

Did You Know?

Money isn’t enough to adequately compensate employees. Meaning and purpose, challenging work, trusted relationships, and autonomy are powerful motivators.

How does volunteering help employees?

According to the 2023 Chief Executives for Corporate Purpose Giving in Numbers report, 84 percent of companies offer flexible scheduling or paid time off for their employees’ volunteer opportunities. Some businesses even allot up to 60 hours of volunteer time off. 

Here are some of the benefits volunteerism brings to employees. 

1. Volunteerism helps employees feel more empowered.

Employees feel empowered when they can contribute to causes close to their hearts. According to the Giving in Numbers report, employees are more likely to participate in volunteer programs when the cause resonates with them. 

Deloitte’s Global 2023 Gen Z and Millennial Survey found that today’s Gen Z and millennial employees feel the need to balance work lives with a drive for societal change. They’re drawn to businesses that allow them to be of service to the community. In return, employees will feel a heightened level of commitment to their company and team, offering substantial growth and development opportunities for both.

2. Volunteerism helps employees develop and share talents and skills.

Employees are hired for the talents and skills necessary to perform their jobs. However, most, if not all, likely have untapped skills they’d appreciate exploring — ones that would bring enormous value to their organizations. 

Volunteer programs open a new world for employees to explore their talents, improve skills, and learn new skills. In fact, the Giving in Numbers report revealed that employees volunteer more when the employer offers skills-based programs. Of companies offering employer-sponsored volunteerism, 73 percent offer skills-based volunteer programs that allow employees to practice and explore tangible skills to help their communities. 

Whether employees learn new skills or hone current talents, they’ll bring this expertise back to their organization along with higher self-worth and a higher value to the company. 

3. Employees will feel happier when they participate in volunteerism.

A Journal of Happiness study found that volunteering can positively impact physical and mental health, alleviate stress, and experience increased life satisfaction. In other words, people who volunteer are happier.

Employees who participate in volunteerism benefit from higher morale and an increase in overall happiness — and happier employees see significant productivity boosts. When employees feel good about being at work, they tend to work harder and take pride in their company.

4. Volunteering helps employees develop leadership potential.

Volunteering can help employees discover untapped talents and may even help them realize their leadership potential.

Volunteer programs are an excellent platform for employees to discover a natural affinity to lead, especially when participating in activities that require sharp management and organizational skills. For the company, discovering new leaders is a valuable opportunity to strengthen the entire organization. 

Key Takeaway

Volunteerism is a way to improve employee engagement. Other ways include implementing team-building activities, offering health and wellness programs, and supporting their professional goals.

2. Volunteer programs can improve a brand’s image.

Just as employees want to work for a company that positively impacts the world, today’s consumers prefer supporting companies and brands that are public and transparent about their corporate social responsibility initiatives. Volunteer programs that feature employees connecting with communities through social initiatives are positively received by the public, which can improve a brand’s image organically.

3. Volunteer programs boost employee engagement.

According to Gallup, only 36 percent of employees feel positively engaged in their positions, although they want to be invested in, connected to and enthusiastic about their employers. Volunteer programs are an excellent way to create and boost employee engagement, motivating employees to invest time and energy into their employer relationship. 

The values and skills they acquire via a volunteer program allow them to perform better while fostering a deeper sense of loyalty to the company. More engaged workers are more productive, making volunteer programs a win for employers, employees, and the causes they support. 

Did You Know?

Aside from volunteering, other community involvement measures can include offering free services or discounts, offering free workshops in your area of expertise, and sponsoring local events.

How to create an employee volunteer program

To improve employee morale with volunteer programs, preparation and follow-through are crucial. Here are some best practices when developing an employee volunteer program:

Assess your community’s needs. Determine what needs are present in your community. Then, poll your employees to learn about their interests. Try to match community needs with employee passions. You may also consider a broader scope for your volunteerism, such as helping the environment or fighting racial injustice.

Align the volunteer program with your business goals. A volunteer program should benefit employees, the cause and the company. Align your business goals and objectives with your volunteer initiatives. They should reflect the company mission and its long-term goals. For example, if you have a sustainable business model, consider environmentally focused volunteer initiatives.

Ensure everyone is onboard with your volunteer initiatives. Ensure everyone in the organization is onboard with prospective volunteer programs. If company executives support the program, they’ll be more willing to encourage employees to participate and offer time off. They also may roll up their sleeves and help.

Partner with other organizations in volunteerism. Determine if you can partner with other local organizations, customers and vendors to help strengthen your volunteerism’s impact. Partnerships also open opportunities for bigger collaborations in the future and more meaningful relationships.

Acknowledge your volunteers and show them your appreciation. Employees are motivated when their efforts are recognized, and this holds true for volunteerism. To show employees you appreciate them, reward volunteer participants with awards, gift cards, coupons, or other forms of recognition. 

Volunteer programs are an excellent way to encourage employees to explore their talents, give back to the world, and develop stronger relationships with their organizations. Businesses benefit from an enhanced brand image and a more engaged and discerning workforce. Positively impacting the world is a noble goal that befits the community, employees and sponsoring companies. Carefully consider your volunteer programs and implement them with sincerity, excellent management, ethical behavior and thoughtful leadership. 

Adam Uzialko contributed to the reporting and writing in this article. 

Staying Legal With Your Facebook Competitions

5 Legal ways to contact Facebook winners

When Facebook updated their promotion guidelines this past August, they casually removed the rule that stated brands could not contact promotion winners on Facebook via status updates, private messages, chat, etc. This rule was kind of a hassle, especially for businesses with multiple promotion winners to notify, so pretty much everyone we know was glad to see it go.

With this rule no longer in existence, some of our users have asked: What’s the best way to contact contest winners now? In today’s blog post, we cover not one, but five great and totally legal ways to contact Facebook promotion winners.

5 Tips for contacting your Facebook winners

Here they are:

1. Post a status update

One simple way to contact promotion winners is to create a post on your Timeline and announce your winners in it. For example, the post would read:

‘Congrats Winner Name! You’ve won our awesome prize. To claim it, email us at ‘[email protected]’ You have 48 hours to claim your prize. We will choose another winner if we don’t hear from you by then.’

FYI: When we hosted our first promotion after the new rule change, we initially tried to tag our winners in our status update using their @name but Facebook does not allow business Pages to tag users, even if they have liked the page.

That said, a status update is a great way to announce your promotion winner, but it is not the best way to contact them as it is impossible to ensure that your contest winners will see your post.

Therefore, in order for this to be an option, host a Comment or Comment and Like to enter Timeline promotion.

3. Require users to submit their email addresses

If you don’t like the idea of contacting your promotion winners on Facebook through a status update, require entrants to visit an app to enter their email addresses so that your business can contact your winners via email.

If your business is adamant about collecting the email addresses of your promotion entrants, be sure to include in your contest rules that only entrants who’ve submitted their email addresses will be selected as winners.

4. Use Twitter

Note: Make it clear in your promotion’s rules and guidelines that your winner will be contacted via Twitter.

5. Announce winners on your blog or website

If your business doesn’t want to fuss about contacting multiple promotion winners directly, state in the details of your promotion that an announcement will be made on your blog or website on a specific date and time. This way the responsibility is on your entrants to find out if they’ve won.

In the announcement on your website or blog, provide instructions on how your winners should contact you to receive their prizes. For instance, they might have to email a person on your team on a certain date and time.

As you might have noticed, we did not include Facebook private messaging in our list of ways to contact promotion winners. There’s a big reason for this.

When a user receives a private message from a user other than one of their Facebook friends, the message is often marked as spam. If your business chooses to go this route to contact your promotion winners, it’s likely your winners may never see your message.

How To Determine Employee Salary Ranges

Other considerations when setting employee salaries

Here are some other points to keep in mind when determining an employee’s salary.

Mind your finances.

You need to set a realistic budget for each new position and keep all new-hire salaries for that position within your predetermined range. As part of this process, business owners must decide if they want to be known as an employer who pays top wages for top talent or an employer who pays base wages (under midpoint) just to get someone to take the job, said Laura Handrick, owner of Laura H Consulting.

In addition to looking at employee salaries individually, be sure to keep track of your overall compensation expenses for your entire team. How much of your organization’s budget can you devote to personnel costs? Will adding a particular benefit mean cutting back in another area of your business? While salaries should be set on a role-by-role basis, don’t overlook the cumulative financial impact on your company.

Raise employee wages when you can.

As employees continue to work for your company, they will expect bonuses and/or raises. Make sure to set starting wages that you can realistically increase over time based on inflation and performance. You may even want to increase a new employee’s wages after a three-month trial period ends or offer company-wide increases once a year to account for inflation.

Pay attention to your hiring cycle, as that may affect your need to raise wages as well. For example, Grant Aldrich, founder and CEO of chúng tôi said business owners should change salaries based on turnover. If turnover is high, you may want to raise wages to increase employee retention. [Get tips for improving your hiring process.]

It’s also time to give employees a salary increase when they’ve performed at a higher level for a sustained period of time or when you have to pay new hires more to get them on board for a preexisting role, Handrick said.

“You don’t want to have existing employees earning less than new hires in the same job, as you’re likely to end up with disgruntled employees at the least and may end up on the wrong end of a discrimination lawsuit if the existing employee is in a protected class (female, minority, over 40, disabled) and the new hire is not,” Handrick said.

Key Takeaway

Give employee raises based on inflation and good performance, but make sure that doing so doesn’t put your company in financial jeopardy.

A great salary can jump-start great employee contributions

When you successfully walk the tightrope between sticking to your budget and paying employees what they’re worth, great results are all but inevitable. For starters, providing ideal salaries means your company will be an appealing place for team members who want their efforts to be reflected in their pay. Alongside that, when you budget appropriately for compensation, you’ll have the money you need to keep pushing your organization toward long-term growth and sustainability. The better your business gets, the better you’ll be able to reward staffers too.

Max Freedman contributed to the writing and reporting of this article. Source interviews were conducted for a previous version of this article. 

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