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Raise and the praise

America's trusted voice on money and business, Dave Ramsey is a personal money management expert and extremely popular national radio personality. His three New York Times best-selling books - Financial Peace, More Than Enough and The Total Money Makeover - have sold more than 6 million copies combined. His latest book is EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches.
Dave says not everyone deserves a raise. Team members that bring measurable value to the company and are a proven hard worker and consistent contributor should get the raise and the praise! Raise and the praise

Your team is probably stocked with players holding varying degrees of talent, tenure, and maturity. Sooner or later, every one of them is going to have a moment when they feel they’re worth more than the numbers on their paycheck. Some of them will be right in their assessment, while others may have a slightly unrealistic interpretation of what they’ve brought to the table.

At my company, we don’t award raises based on longevity. I’m sorry, but the simple fact that you’ve been occupying a desk or breathing air in the same office building for a year doesn’t meet the qualifications for an increase in salary. If you’ve brought true, measurable value to the company, however, and if you’ve proven yourself to be a hard-working and consistent contributor, you bet you’re going to be rewarded! Even now, after all these years in business, I love seeing a team member’s face light up when they get the news that a raise is coming.

You, as a leader, have a responsibility to provide your team with everything they need to succeed. That’s why we rarely cut a team member’s pay due to poor performance. Your people are more than numbers and units of production on your bottom line. If a team member is struggling, sometimes additional training is the answer. Other times, they may be battling personal issues outside work. A good leader will realize when a little grace and understanding are needed. Things like this happen to all of us from time to time, regardless of our spot in the company hierarchy.

Raises should be given happily, and with praise, to team members who are solid, consistent contributors year-in and year-out. Praise the person’s actions and talents, give the raise, then praise them some more. These moments are times for celebration. The company wins because it has a truly valued and productive team member. And the player wins because they see-in a very tangible way-that they’re appreciated, valued and respected.

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