How to Handle a Pay-Raise Request From an Employee

Guest Article

teamwork-383939_1280Who doesn’t want to be acknowledged as a fair boss to his or her employees! It took years of hard work for you to attain this position, build a team and generate the most you could, for your organization. But isn’t it a human tendency for a person to desire more? Asking for a pay-raise is common amongst employees all across the globe and for you as an employer, you must be prepared to deal with this situation. Here are 7 steps to take in your decision-making:

  • Consider the Request

There’s no rush to go for an instant response, but you need to consider the request seriously. Schedule a meeting with your employee and find out why he or she thinks that the request for a pay raise is legitimate. Tell him that you’ll surely think over it and get back with an appropriate reply.

  • Know What Competition You’re Facing!

It’s quite imperative for you to know whether the remuneration you provide is in line with your competitors. If what you pay is considerably low, then it’s highly probable for your talented workers to resign and take up positions elsewhere. Those who’ll stay back will either feel miserable or demotivated. Establishing a reputation for being known as an employer who pays genuinely, can prove lucrative in the long run, when enticing skilled applicants.

  • Be Consistent

The way you respond to one employee pay raise request should follow exactly the same drill for another. A lot of large organizations have rigid increment procedures in place for annual increases, most small businesses do not. Hence, the need for small business owners to handle these requests formally. A proper review process with documentation becomes quite significant to show a worker whether or not they are delivering at or above your expectations.

  • Consider Non-Monetary Perks

It might just happen that the financial condition of your organization doesn’t allow you to handle an employee’s pay-hike. In such a case, non-monetary perks might be a good fit. It is important for the worker to get recognized for his efforts. Consider making the employee’s work schedule more flexible, sending handwritten notes, join you on a business trip, more time off or getting the worker more visibility amongst your top clients.

  • Follow the ‘Delayed Gratification’ Route

If you think that your employee has the potential to perform a notch-higher and justify a salary hike, but isn’t quite there yet, then agree for a rise in the future, but be specific with a certain time-frame. This will not only get the employee on his toes to achieve the target, but will make him stick with your organization as well.

Be direct using this approach. Make sure you acknowledge what is currently being accomplished by the employee and what you desired of him to go up a level, to avoid any unnecessary confusion.

  • Do It, If The Employee is Deserving

Nothing facilitates the growth of your business more than a happy and loyal workforce. If the employee shows allegiance to the company and always delivers hard work to achieve the targets, give him the pay hike, as demanded.

  • No Need to Spill the Beans

Whatever happens, make sure that the whole process is kept confidential. Discourage your staff to indulge in any discussion regarding the same. Keep all the paperwork and documents in a file; you don’t need anyone else knowing about what you are doing for any other employee. You also don’t need anyone holding personal grudges against one-another.

Pay-hike requests are inevitable. So, it’s better if you are ready to handle such a situation. Hopefully, the tips mentioned above will help you to address your employees’ concerns efficiently.

Anshuman KukretiAbout the Author: Anshuman Kukreti is a professional writer and a keen follower of the global job market. An engineer by qualification and an artist at heart, he writes on various topics relating to employment across the globe. Currently he is working for Naukrigulf

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