Communication is paramount in any successful company. Employees should not be afraid to seek fair compensation if they feel it needs amendment. Similarly, employers should not fear the idea of having this conversation. There are many ways to ensure equal compromise for both parties. Many experts have had direct experience with these feared conversations. Here’s their take!
Tip: Don’t Avoid the Conversation.
3 Quick Tips for Responding to Employees Who Ask for a Raise
By: Refresh Leadership Blog (@ExpressPros)
Refresh Leadership, the blog of Express Pros, gives solid advice for how to deal with this tough conversation. First off, the author acknowledges it’s not THAT hard to figure out what to do when a star employee or an underperforming employee asks for a pay bump. In the case of the former, you’re usually happy to give it or find a way to make it happen post-haste. When an underperformer makes the same request, it’s usually a solid opening into a conversation about why that wouldn’t be appropriate. But when the request comes from a B- or C-Player, how do you respond?
According to this post, the first thing you should do is dive right in. That’s right, don’t avoid it. To read two other tips (one that’s incredibly helpful), head over to Refresh Leadership.
Tip: Decide if you’re willing to risk losing a performer over an additional $800 in salary per month.
8 Steps to Negotiating Your Employee’s Salary
By: Don Charlton (@Dontrepreneur), Inc (@inc)
Don Charlton lays out what to do when you’ve laid down an incredible offer and the new hire says…it’s just not good enough. Instead of getting offended, Charlton shows you how to play the game and view the number requests a little differently than you have in the past. His bottom line question “Are you willing to lose a top performer for $800 a month?” If not, read his rules for negotiating your employee’s salary on Inc.
Tip: Build a MAP (Mutual Action Plan)
5 Things to Consider Before Raise Requests
By: Michael Heller (@michael_heller), iRevu (@Engagiant_iRevu)
Having that big talk with your employees isn’t easy, especially outside the parameters of a normal performance discussion. When it does happen, here are 5 things you can do to make it a profitable and productive conversation for both you and your employee. One crucial piece of the puzzle is recognizing when you might not be able to say yes and building a plan that aligns with your employee’s compensation goals.
Tip: This is a business discussion. Keep emotions in check.
Boss Moves: 6 Effective Ways to Handle Raise Requests
By: Jessica Stillman (@EntryLevelRebel), Inc (@inc)
The most valuable piece of this article by Jessica Stillman, is the script you can use when the employee is not deserving of a raise. Keep in mind that “not deserving” may not mean performance is bad, or the employee isn’t valuable, simply that they are already at market rate and need to contribute more to get to that next level.
“If you want to keep them around, but they’re either not ready for a raise, they had one in the past six months, they’re actually at market standard or they haven’t been taking on new responsibilities, you have to give them a clear path to a raise,” Wallaert insisted.
Nab 40+ tips on how to properly negotiate pay raises. Click To Tweet
A flat no won’t do. Instead, he said, “you need to say: ‘We’ve looked at this together, Here are the reasons it’s not right. Here’s what you could do to correct that going forward and let’s schedule a meeting now to re-have this discussion in six months.”
Tip: Don’t rush this! Others need to weigh in.
3 Quick Tips for Managing Raise Requests
By: SoFi (@SoFi)
Just because an employee has a request, doesn’t mean you have to rush your answer. It’s far better to schedule a meeting far enough into the future to ensure you have time to speak with other managers, your HR department, any executives and a compensation expert. Rushing the conversation may create a frustrating situation for all involved:
And don’t say, “It’s not up to me.” Sure, your HR team likely needs to weigh in on any salary decisions, but that’s not the point: When you say the decision isn’t in your hands, you are relinquishing part of your authority as a manager. Instead, let him know you have heard their request and will get back to him with an answer.
Tip: Internal equity in payment levels is very important.
5 Lessons About Negotiating Salaries With Employees
By: William Taylor, Under30CEO (@Under30CEO)
Have you taken the time to “look under the hood”? Many employees want to negotiate to a place that may make other team members frustrated or create a sense of inequity in your firm. Walking into a compensation conversation before doing some internal discovery on what pay levels will look like should you say yes to the request, is not only foolhardy, it can put your other employees at risk. Can’t say yes to recurring extra cash?:Raise requests are inevitable. Prepare for your conversation with these 40+ tips. Click To Tweet
Sometimes, candidates are willing to trade a higher salary for other benefits. For instance, flexible scheduling is an alternative that will surely please the applicant and won’t cost you anything. Besides, you can offer them extra time off or the possibility to telecommute. A signing bonus might also delight a potential employee, so don’t hesitate to provide it.
Tip: What’s performance got to do with it? EVERYTHING.
5 Ways to Address an Employee’s Pay Rise Request
By: Robert Half (@roberthalf_anz)
Perhaps the most important part of the entire conversation, is whether or not the employee deserves the raise they’re requesting. Performance data and continuous feedback can answer that question much faster than you can, so make sure you have a platform equipped to keep tabs on what your employees are producing and give them constant feedback on how to improve or keep up the good work.
iRevu can help you keep track of who deserves that raise and who might need some coaching to get there. With near real-time performance management at your fingertips and a full-featured trial, why wouldn’t you?