Giving raises without setting off a chain reaction
Ad-hoc raises create resentment. A simple, predictable structure ends the negotiations.
Tie raises to milestones, not the calendar
Certifications, tenure, and proven ownership of a process beat annual cost-of-living bumps. Now the raise is something they earn, not something they ask for.
Be transparent about the ladder
A simple one-page document showing pay bands and what it takes to move between them removes the 'why did they get it and not me' conversation before it starts.
Counter-offers are usually a mistake
If you have to match an outside offer to keep someone, they're already half gone. Pay them right before they shop, or let them go.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.