Last month we talked about asking for a raise. What if you are the employer and an employee is asking you? How do you respond to their request? The employee believes that they are working above their current pay, and you hold the power to grant or deny their request.
It is a very rare case that an employee is granted a raise entirely on what they believe is fair. There are many decisions that go into the decision of a pay raise. The outcome must be beneficial to both, your company and the employee. If you give a raise to one, then others will ask causing a ripple effect has major consequences for the company.
- Don’t react right away: give yourself some time to process the request. Don’t lash out at the employee for or give instant praise. You may not be the person to make the final decision, so giving yourself some time to answer is better than making promises you can’t keep. Watch your body language and facial expressions.
- Ask for more information: The best way to respond to the request is to ask for more information. Find out why they want the raise, and if they have good reasons to ask for the request. By asking for more information, you are not dismissing the case outright, but you are also not answering. Take notes while they are explaining their “why.” It communicates that you are taking their request seriously. Remain neutral; you are Switzerland.
- Acknowledge their courage: It take a lot of courage to ask for a raise, so be sure to acknowledge the effort they put into the request. This employee may feel vulnerable, so even if you are irritated, it is important to acknowledge their courage.
- Evaluate the arguments: When the conversation is over, evaluate the arguments to see if they have a case for a raise. A good argument is one where the employee can demonstrate their pay does not reflect their value to the company. You then have to determine if the pay matched up with that of their peers or the open market. Gather your information about the industry and consider how important the person is to you and the company.
- Know the limit: Every company has limits on salary. Does the employee deserve a one-time bonus for hard work on a special project, or is their performance above and beyond the everyday. There are other way to compensate employees if they are doing great work, and it may not be a raise.
- Talk to the right people: Talk to your boss or HR to determine what the current salary is and if there is anything else that could be appropriate for the situation. Shift the responsibility away from you onto someone else that has the power to make the decision.
- Go to bat: If you have an excellent performer and you are concerned about retention, then step up for them. Go that extra length to keep them in the company. It is hard for HR to say no when you know your employee better than they do. Make you case and back up your arguments with facts.
- Deliver the news: Good or bad, you need to be fair and diplomatic with your deliver. Congratulate them if they are given the raise and let them know just how valued they are to the company. If the new is bad, let them know why. They are compensated fairly compared to others in the same position, but don’t make them feel bad for asking. Give them tips on how to improve their performance over the next six months and then have them try again. It is important not to give up.