Episode 20:
If you’ve ever laid awake at night wondering whether to give a team member a pay rise, and how on earth to afford it, this episode is for you. It’s a topic that comes up all the time in my mentoring sessions and inside The Connection Co. membership, so I wanted to get honest about what really happens when we start increasing wages without a clear plan. Spoiler alert: I’ve made all the mistakes.
In this episode, I chat about the sometimes tricky, often heartfelt process of giving pay rises in a way that honours both your values and the financial reality of running a business. There’s no dry Fair Work lecture here, just real talk, some gentle truths.
Here’s what I cover:
- The first uncomfortable truth about pay rises: the money has to come from somewhere (and no, it’s not Monopoly money)
- The three buckets that pay rises can come out of – profit, your own wage, or practice expenses – and why all three can cause resentment if not managed well
- How to avoid generosity becoming self-sabotage
- What to consider when deciding how much to increase a wage
- Why you need to be clear about whether a pay rise is a thank you for past work or a carrot for future expectations
- The importance of balancing your nice-boss heart with your business-owner brain
- A great little calculation: the wage to income ratio, what it is, how to work it out, and what it can tell you
- Why clarity and communication with your team is just as important as the dollars on the payslip
Key takeaways and reflections:
- Pay rises are not just a lovely gesture, they’re ongoing financial commitments that must be backed by a sustainable plan
- You can be both generous and responsible, those two things aren’t mutually exclusive
- Clear communication about wage levels, award rates, and business sustainability can save everyone from future misunderstandings
- Checking your team’s wage to income ratios can help you make smarter, values-aligned wage decisions
- It’s okay to pause. You don’t have to say yes to every request out of guilt or fear
If you’re currently wrestling with whether (or how) to give a pay rise, I hope this episode has helped you feel less alone and more equipped. The balance between looking after your team and looking after your business is a delicate one, but you can absolutely do both.
I’ve also created a free fact sheet to walk you through the wage-to-income ratio – what it is, how to calculate it, and what it means for your team. You can download it here: FREE Wage to Income Ratio Factsheet
Thanks for being here….I’m so grateful to share this journey with you.