Handling A Request For A Salary Increase

Published by Shawn Wilson in Management, 1 month 3 weeks 1 day 1 hour 15 minutes 22 seconds ago

Many of us have been in the position of asking our boss for a raise. Fewer of us have sat on the other side of the desk during this process. I've had the opportunity to sit on both sides (at different times of course!) and let me tell you, neither is easy. Here are some tips on how to handle an employee's request for a salary increase.

Be Prepared - Chances are you've known this was coming and have set a date and time for the discussion with your employee. Before the meeting, review her job description and write down any additional responsibilities that she may have taken on since the last review. List her successes such as consistently exceeding her sales quota in the case of a salesperson, or trimming the turnaround time for accounts receivable in the case of a collection clerk. If she supervises other staff, talk to them and get their input on her management style. Make note of her strengths and weaknesses and steps she might take to build on the former and improve the latter.

Be Realistic - As a manager, you should already be aware of the pay scale for the job that she does. If you're not, you have some research to do. Without this information, you risk over or under paying her, which will do nothing for your own reputation or future possibilities. Do schedule the interview at a time when you're not under any undue employment related stresses. Holding an interview with your inventory control administrator right in the middle of the yearend inventory count will put both of you on edge.

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Don't make it personal - Don't let her take advantage of your sympathetic nature by allowing her personal financial situation to influence your decision about whether or not to give her a raise. It's none of your business and you should immediately change the subject. This review is about her work, not her life outside of it, unless it negatively interferes with her job, such as drug or alcohol abuse. If this is an issue however, it should be addressed immediately and not be put off until a formal interview. Clarify - Ask her to be specific about her raise. If what she's looking for is totally unrealistic, you may want to let her know right then and there that's it's a no go. If her request is reasonable, give her a date, sooner rather than later, by which you can give her an answer.

Decide - Before denying her the raise she requested, consider the consequences. Can you afford to lose this employee? How difficult would it be to find a replacement and train her? Your decision to either deny the raise, or to offer far less than she is expecting may have repercussions that will be counterproductive to employee morale in general. A disgruntled employee spread poison that will be hard to contain. So think about the long term effect of your decision.

Deliver - If you've decided to award the employee her requested raise, make sure that she understands she has to continue her efforts, and there is no room for complacency. If on the other hand you deliver bad news, do so diplomatically and offer her suggestions on how to improve her performance to ensure a favorable outcome next time, and set a date for her next review.

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If the company is simply not in a financial position to meet her expectations, however reasonable they may be, be prepared to negotiate other forms of compensation such as increased vacation time, sick leave with pay, or a bonus structure.

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