December 3, 2024
The Unstoppable Salary Raise Season (But Wait, There’s Hope!)
Every year around this time, it’s the same story: salary raises become inevitable. They’re expected, often demanded, and yet… their impact is as fleeting as a snowflake on a sunny day. Sure, a raise is nice, but let’s be honest—does it really make employees more engaged or less likely to leave? Not so much.
The Real Cost of Annual Raises
In Canada, the average salary increase is 3.6%. That sounds decent, right? Until you realize that for most companies, this barely moves the needle on retention or employee happiness. You’re pouring money into something that evaporates faster than holiday bonuses.
For example:
- Raise of 3% on a $50,000 salary = $1,500/year.
- After taxes? It’s roughly $1,000 in pocket change.
- Impact on engagement? Minimal.
Enter: The Game-Changing Concept of “Benefits Raises”
What if we told you there’s a better way to make your team feel valued without blowing your budget? At Tedy, we’re pioneering a new approach—Benefits Raises.
Imagine splitting that same salary adjustment to include:
- 2.5% salary raise: Keeps the tradition alive and gives employees a tangible boost.
- 0.5% wellness benefits: A flexible account for things that truly make employees’ lives better, like gym memberships, mental health services, or learning opportunities.
This isn’t just about saving money—it’s about showing your team you care about their well-being in a real, actionable way.
Why Benefits Work
Investing even a small portion of raises into wellness accounts can double the happiness factor. It’s not just about dollars—it’s about delivering value employees can see, feel, and use. In fact, teams that embrace this hybrid approach report:
- Higher engagement: Employees feel more supported and motivated.
- Improved retention: They’re less likely to jump ship for an extra buck.
- Smarter spending: Your budget goes further, delivering greater impact.
Your Simplified Formula for Benefits Raises
Here’s how to structure it:
- Calculate Total Raise Budget:
Annual salary × percentage raise (e.g., $50,000 × 3% = $1,500).
- Allocate Split:
- 2.5% for salary = $1,250.
- 0.5% for benefits = $250.
- Activate with Tedy:
- Use Tedy to allocate that $250 into wellness accounts directly.
Formula:
Total Raise Budget = (Salary × Raise %) → (Salary Raise %) + (Benefits Raise %)
A Raise Your Team Will Remember
This isn’t just about numbers—it’s about transforming your workplace culture. A “Benefits Raise” shows employees you’re thinking beyond paychecks and genuinely investing in their happiness and well-being.
So, as the salary raise season kicks off, don’t just follow the crowd. Lead with innovation. Create a raise strategy that sticks, resonates, and delivers results. After all, a salary raise is good, but a salary raise + Tedy? Now that’s unforgettable.
Ready to change the game? Let’s talk! Head over to tedy.app and explore how you can turn raises into a win-win for everyone.
