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The economy is rocky, inflation is high, and budgets are strained. Yet, to retain talent -- leaders must distribute pay raises if anything to help combat inflation. It’s no secret that labor costs are the leading expense in financial reports. As leaders, you may have agonized over how to give raises this year. You are not alone. The challenge is daunting considering great resignations, market volatility, and low reimbursements or customer engagement depending on the industry. According to Pew Research, from April 2021 to March 2022, when quit rates hit post-pandemic highs, the majority of employees switching jobs (60%) saw an incrust in their real earnings over the same month the previous year.

Doing nothing isn't an option. If the budget doesn't allow it, what's left? It's time to get creative about employee morale. It's time to think beyond the status quo and ping pong tables.

Keeping a high morale is possible. Here are steps to consider as you address it in your workplace. 

To start let’s cover the leg work before meeting with employees.  

This is not the time to assume an organization-wide memo will cover it or that front line supervisors are communicating effectively. We are in an era where employees don’t trust narratives. Let’s get ready to have individual conversations with employees. 

To prepare there are three important things to gather:

  • The facts
  • Market data
  • Budget data

The real positive impact  

Meet in private individually with unhappy employees to hear out their concerns. 

  • Explain how the business arrived at their current wage. Be clear and succinct. Answer questions as they come up – yes even the tough ones. Be vulnerable and honest. If you don’t know the answer, say so. Follow up later with an answer. 
  • Explore further – is there anything else wrong? In the healthcare industry, burnout and violence against caregivers is a problem today. Many may feel they “don’t get paid enough to deal with it.”  This may be an opportunity to solving another more pervasive problem that goes beyond the paycheck.
  • Be a career coach. This conversation about pay is also an opportunity to coach employees on how they can level up their earning potential. Can they learn a new skill? Pick up a new certification? Career advisory support may be a low-cost solution to maintaining morale. It is no secret that one of the reasons people quit employment today is due to a lack of career advancement opportunities. Make the most of these individual employee meetings.
  • Promise to follow-up and do plan to follow up.   
  • Research the basis of additional concerns.
  • Hold the follow up meeting and outline a plan. As leaders we are busy, but this isn’t optional.
  • Check in regularly with the employee afterwards. This part shows them that you care. 

People understand that the market is uncertain. But they want to know they are being heard and treated fairly. Leaders hearing out their concerns on a one-on-one basis can go miles towards achieving high organizational morale and retention goals.

In my experience I've observed how this conversation can be hard for some who are in leadership, management, and supervisory roles. That is why I help clients with employee engagement, recruitment and retention needs in this new era.

Send me a message to team@hrcsuite.com if you’d like help with my “Low-Raise - Keep Morale High” expertise. 

  1. Conduct pay transparency survey and provide Insights
  2. Conduct salary reviews
  3. Facilitate leadership calibration sessions
  4. Provide expert answers to top three employee questions about pay

All my best to your success,

Tresha Moreland

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Tresha Moreland

Tresha Moreland is a 30-year organizational effectiveness and strategic workforce planning expert. She partners with business leaders to develop workplace strategies that achieve best-in-class results. She has held key organizational leadership roles in multiple industries such as manufacturing, distribution, retail, hospitality, and healthcare. Tresha is the founder and principal consultant of HR C-Suite, LLC (www.hrcsuite.com). HR C-Suite is a results-based HR strategy resource dedicated to connecting HR with business results. She has received a master’s degree in human resource management (MS) and a master’s degree in business administration (MBA). She has also earned a Senior Professional in Human Resources (SPHR), Six Sigma Black Belt Professional (SSBBP) Certification. She is also recognized as a Fellow with the American College Healthcare Executives with a FACHE designation.

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