Do your raises keep up with the times?

The cost of living creeps up and up. Does team members' pay keep pace?

Jaime just asked you for a raise. And Lauren asked last week. What you need is a systematic approach. Because you don't want to just reward the squeaky wheel. That wouldn't be fair.

One solution is to use the cost of living adjustment (COLA), determined by the government each year as your basis for basic increases. Offering this increase to your employees insures that they can maintain at least the same standard of living as the year before—and it shouldn't break the clinic bank. The COLA has been between 0.5 percent and 1.5 percent annually.

It's also a good idea to set up a standard wage scale. Ideally you'd identify the wage for a starting employee and ways he or she could earn more. For instance, you might choose to give an increase for additional schooling, working undesirable shifts, management duties, and so on. Then you can set a standard raise scale that reflects your practice standards for each position in your clinic. Keep in mind, the requirements for moving to the next level in pay should be based on your job descriptions.

This system makes employees responsible for their own career development. You can link your raise levels with skill and knowledge or with evaluation results. If you have a good evaluation system, this will ensure that only those who perform well will be eligible for a raise. This motivates your ambitious employees to improve, and those who are happy maintaining the performance they've achieved will receive the COLA and maintain their standard of living.

Lauren Diamond is director of patient care for Gulf Coast Veterinary Internist & Critical Care in Houston.