As a business, or an employer, how do you decide on when should give a salary hike to your staff? Most employer consider the duration of an employee's service, some also consider the performance, where as some also consider profitability of their business. No matter what you choose to do, the most important thing is to check if you can afford to give them a salary raise. If your business is doing well, if the employer is working well, you can they them salary hike at any time and don't have to wait five years to increase their salary. Salary increment also means better performance.