Just because employees are conscientious and hardworking, you can't count on them to ask for a raise when they feel they deserve one. Often your best workers are the most reluctant to demand an increase in pay. That could be a problem. Unless you have a system for rewarding people who perform up to or above your expectations, you could lose the very employees you want most to retain.
This prospect worried Fred DeLuca, president of Subway Sandwiches & Salads, a fast-food franchisor in Milford, Conn., with about 160 employees. So he came up with a program of automatic raises for office workers. During the first seven months on the job, an employee's weekly salary is automatically increased by $5 at the end of each month. Thereafter, it goes up $3 per week. There is as yet no ceiling on salaries, but raises can be withheld or increased at a supervisor's discretion.
DeLuca says the program has helped improve morale and reduce turnover. "The mild people never get recognition like aggressive workers do," says DeLuca. "This way, they feel comfortable, and it really doesn't cost that much."