How to Handle a Raise Request

Dealing with employees involves countering a range of issues and problems. As a manager, it is your duty to respond diplomatically, reassuring your employees that you have their best interest. In today’s fragile economy, it is no surprise that employees are careful not to approach the matter of a raise as it has become increasingly difficult to obtain one.  

The majority of companies have a formal compensation policy to ensure that such requests are self-answered for employees. However in light of the turbulent economy, many companies have retracted their policies as they are unable to compensate the majority of their staff. In such an event, employees have taken to approach the matter themselves, asking their employer to reassess their salary and implement a raise.

Here is what you should do if you are approached with a raise request:

Value of the Role

Many organizations have a number of individuals employed at the same level, in such a case it is common that all of these employees receive the same salary. In such an event where all employees are carrying out the same tasks and contributing equally, it is recommended to reply to the raise request and inform the employee that it is not feasible for the company to offer a raise.

Value of the Employee

The majority of employees who approach the matter of a raise have a strong case built to back up their request. For example: the employee is working at the same level as others, however they take on other responsibilities and provide a higher success rate. This demonstrates that the employee is taking their role seriously, and it is imperative that you reward such attitude towards work. By offering a raise, employers are able to ensure that their employees feel valued at the company they work for.

Progress of the Employee

Once you have determined whether or not the employee deserves a raise, it is advised to research their progression within the company. This will help you determine their value, their worth and their importance within your department/business. Employees who have remained at the same position since they started, showing no progression are usually the ones who the company cannot afford to give a raise to. It is important to offer a raise to those employees who actively progress in their role and thrive in their job.