What do you base raises on, and how do you decide the amount?

Last week, I met a former university classmate who now works at an advertising agency. She was really happy because she had just gotten a raise. But when she mentioned the amount, it honestly seemed like nonsense to me (though I didn’t say anything so I wouldn’t ruin her joy). 😀

What surprised me even more was that she had to go to her boss and ask for the raise herself (which felt like a double nonsense). But I get it...companies want to save money wherever they can.

So, how do you, founders and employers, approach giving raises to your employees?

(Or in other words, what makes you decide someone deserves a raise, and how do you decide by how much?)

• Is it for loyalty? (Years spent working at your company)

• A life event? (Like the birth of another child)

• When an employee brings some kind of innovation?

• Let me know...