My employee wants a huge raise

Most employees ask for a raise because they genuinely feel they provide greater value to your business than their pay reflects. You’ll need to address that—otherwise your employee will walk away feeling both invalidated and demotivated. Giving raises to loyal employees who deserve them shows that you recognize all of their hard work.

Raises will also remind them that high job performance will always be rewarded. As a business owner, you already know that sometimes employee raises are well deserved.

Other times, not so much. Then you must “paint a picture of what needs to happen” before those things can. Employees want clarity, and it’s important that you’re both on the same page when it comes to their role and performance. When your employees ask for a raise , it’s a big challenge for any manager.

How you respond can affect morale, retention, and your budget. End of discussion” is unlikely to end well, just as much as lying and saying, “Sure in months” (and then saying that again in months). So you’ve made sure your employee feels their request has been heard and collected information about what they want and why they think it’s appropriate.

Now, “a key point is never make a decision at the time a raise request is made,” says Dick Grote, founder and president of Grote Consulting , where he specializes in performance management.

Ask for more information Your first reaction, regardless of whether you think the employee deserves the raise, should be curiosity. Grote suggests a “simple, three-word sentence”: Tell me more. But I really want leaders to get this too. Whether you operate a large or small company, trepidation of higher payroll expenses can turn your hands cold with perspiration. That’s especially true when talented employees suddenly ask for a raise when profits are weak.

Talented workers are an asset – your human capital. Many companies don’t have a compensation policy. In addition to talking with the employees about how they have been doing in performing their jobs, you can also use the performance appraisal to set goals for the employees for the period until the next time you evaluate performance.

How well the employees measure up to those goals can help you determine how much of a raise they deserve. If your employee is a team player, regularly lends a hand to other coworkers and has no disciplinary or performance issues to speak of, plan to use this information in your raise request. It’s QA Wednesday, and one of our listeners has a valuable employee with an inconvenient request: a (yes, 40) percent increase in salary. That’s a hard bargain to drive, but driven it is.

What’s an entrepreneur to do when a crucial team member makes such a drastic demand? Today, we’ll discuss if, and how, to keep employees who highball. Make it clear they occupy an important position on the team, and offer tips on how to boost future performance to ensure a raise at the next employee review.

If done correctly, you will be creating a more invested employee whose raise request was not rejecte but merely postponed to a date in the not-so-distant future.

Well, this reader note shows me that’s not always the case. I have a problem I’m hoping you can help me with. The question then becomes, how do employees increase their value? There are three basic steps: 1) ensure that you’re meeting the basic expectations of your job, 2) you identify areas where you can add more value and 3) create and execute a plan to exceed expectations! In fact, this preference is so strong, one study found of employees want perks or benefits more than they want a pay raise.

That’s why curated company exclusives, like the extensive global catalogue accessible through Fon make such a fantastic employee perk. This is the type of raise -negotiation scenario that a lot of people aren’t as prepared for as they could be–it can feel like your whole pitch has failed. But it’s a mistake to just give up. A week later, my company froze salaries.

This year, raises are back in effect. A direct report I inheirited 1. Research as much as you are willing to about background and pay. If you feel a raise is in order, the first step is to track your accomplishments on a regular basis in an achievements journal, where you note major projects and successes, or an itemized.

If an employee is confident enough to ask for a raise, often it’s because he’s done something he believes warrants it. By listening to your employee’s case, you’ll not only gain insight into his. Add their current salary to the Current Pay field with the Pay Periodset toAnnual. Insert the Pay Raise of within the first box (leaving the second box blank) and select Percent for the input.

If you see these behaviors, prepare to make a personnel move.