You can be on Entrepreneur’s cover!

Uber Recently Gave Pay Raises, But Are They Enough to Keep Employees Around? Compensation and work-life balance are both key to keeping workers happy.

By Nina Zipkin

entrepreneur daily
Uber | Shutterstock

Since former Uber CEO Travis Kalanick stepped down in June after the results of an investigation into systemic harassment and discrimination at the company were made public, the noise around the perennially embattled business has quieted as it enters a rebuilding period.

After months of upheaval, Buzzfeed reported that thousands of Uber's technical employees will receive pay increases, amid past complaints about the rate of compensation at the company.

Uber had to fire more than 20 employees due to the findings of the harassment probe, and a number of high-level roles -- chief among them, CEO and COO -- still need to be filled.

Related: The Rise and Fall of Uber and Travis Kalanick

So are these raises a way to reward those loyal employees who have weathered the storm, or is this simply a stop gap measure?

Workplace communication expert and Working Conversations founder Janel Anderson says when it comes to employee retention in a competitive labor market, raises are a good start, but salary bumps alone won't change perceptions about the culture at large.

"People may feel short-term positive feelings initially, but after several months the adaptation has taken hold, resulting in no overall gain in individual satisfaction or morale," Anderson told Entrepreneur. "It is no different for Uber, where equity is already making employees feel like they're wearing golden handcuffs."

Related: Uber Needs to Recreate its Company Culture. Here's What You Can Learn From Its Mistakes.

Anderson notes that when employees decide to leave their jobs for another gig, the first thing that they consider is the compensation package, followed by work/life balance. That goes for baby boomer, generation X and millennial workers. And since the work/life balance element is perhaps going to be slower to change, compensation is the first move that the company is able to make.

"Uber, known for it's hard-driving corporate culture, like so many tech startups, isn't likely to change in the work/life balance category, so salary and benefits is the lever they have available to them to push," Anderson says. "If Uber really wants to retain their employees, they are going to have to look beyond salary and benefits and address the culture -- and that starts with fostering healthy relationships within the organization."

Nina Zipkin

Entrepreneur Staff

Staff Writer. Covers leadership, media, technology and culture.

Nina Zipkin is a staff writer at Entrepreneur.com. She frequently covers leadership, media, tech, startups, culture and workplace trends.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

I Designed My Dream Home For Free With an AI Architect — Here's How It Works

The AI architect, Vitruvius, created three designs in minutes, complete with floor plans and pictures of the inside and outside of the house.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Making a Change

Learn to Play Guitar Even if You Have No Previous Training for Just $20

Start with the beginner's crash course and learn how to play guitar in no time.

Business News

This Fan-Favorite Masters 2024 Item Is Still $1.50 as Tournament Menu Appears Unscathed by Inflation

The pimento cheese sandwich is a tradition almost as big as the tournament itself.

Marketing

Save Big and Get This Pro Collage App for $39.99

Edit, adjust, and create collages in seconds.