When you should implement a cost of living raise? Cost of living raises are given for and in a couple different ways. A cost of living raise is generally given with the raise of the cost of living based on the economy in the areas of the employees living in that area. The usual percent of increase in the cost of living is around 2-3% overall per year. This is the usually amount that a cost of living raise would be.
So lets start with when the cost of living raises should be given. This can be done in a couple different ways. You can either give the raise at the end of an employee review period, on the date of the employee's yearly anniversary, or when a significant change has occurred in the employee's growth.
Here is how to determine cost of living raises that are needed with economy changes. Knowing what to pay when you are determining cost of living raises can be very difficult. This is because you will find that the increases can be a burden to the company, though it is important to pay your employees sufficiently for them to be able to grow with the economical changes that occur.
Even though the changes for the raises can be hard to determine, there is something that you can do to help yourself with these decisions.Continue reading "How to determine cost of living raises"