Not all employees are confident enough to ask for a raise. They hesitate since they don’t know how managers are going to respond. You should know what to do if you’re on the other end of the conversation. You want what’s best for the company while considering the employees’ needs. Here are some tips to help you in this situation.
Listen to the reasons
The last thing you should do is decline the request and not even have a conversation. It can make the employee feel unmotivated. There might even be a threat of leaving the post. On the other hand, if you know this person is doing a great job, you must at least listen. You’re not yet ready to give anyone a raise, but there might be sufficient reasons to change your mind.
Consider the explanations
After the conversation, you must take the reasons seriously. You can’t pretend to care when the employee is around and turn your back to decline the request immediately. Instead, you should weigh the information received and decide if it’s a good idea to give a raise.
Give more responsibilities
You shouldn’t hesitate to raise a salary if you can offer more responsibilities. Instead of paying a new full-time employee, you would rather give the raise. If you think some can do more, you can give them more responsibilities. For instance, you can ask them to help organise a corporate event. On the other hand, If you decide to have a funfair and hire a third party like https://www.wearetricycle.co.uk/, the employee can still supervise the event, with the company doing the heavy lifting. It’s an additional responsibility but won’t cause burnout.
Offer other incentives
Salary raise isn’t the only way to show your employees that you value their presence in the company. You can offer other incentives and benefits. They might not necessarily be in the form of immediate cash, but employees will still appreciate your offer. It’s better than not giving anything at all.
Explain your reason
You decide what’s best for everyone in this situation. Of course, it’s ideal not to decline the request if the employee performs well. However, it would help if you also thought about your company’s finances. Regardless of your decision, the employee deserves an explanation. Be rational in giving your reasons and make sure no one feels hurt. Again, your top-performing employees should remain on the team. You can’t do anything to jeopardize it.
You must have standards to determine how much your employees deserve to get as a salary. You should also move towards a performance-based approach. Then, you will be fair when using this standard, and no one will complain about getting unfair treatment.
You will also motivate the employees to do more since they know what they must aim for to receive a salary bump. Apart from money, a potential promotion should also be on the table. You want everyone to stay motivated to work harder. Eventually, your company will benefit when everyone does a great job.