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An employee asks to increase salary: what to do?

Irina Narchemashvili talks about how to respond to employee requests for higher wages: how to listen to a request and evaluate the contribution of an employee so as not to be mistaken with the answer
All employees want to earn more. All businessmen want to pay fairly. So that employees benefit, and investments in salaries paid off. So how to decide whether to give an increase? How to keep a person, and not to be left without money? I give a couple of tips and a secret reception at the end.

0. Listen

Let the employee say what he wants. Do not interrupt or go to the topic of salary first. If a person mumbles, hints, but is afraid to say directly, then he doubts and does not take responsibility for himself. Do not solve far-fetched problems. There are no offers from the employee – there is nothing to discuss.

1. Find out the reason

It’s good if an employee talks about work and results. Bad – if about personal problems. “I took additional functions”, “I am overfulfilling plans”, “I want to lead a new direction”, “With my arrival, the indicators doubled” are good reasons for raising salaries.

“I took a mortgage”, “I need to feed my children”, “I have been working for two years”, “Vanya has more salaries” – bad. If a person came up with a concrete proposal and justifies it, then we can move on. If I came to complain, I would think ten times.

2. Take the time

Do not chop off the shoulder. Confirm the merits of a person, but do not promise anything right away. The salary is a thin thing, we must weigh everything. Maybe you will increase the salary, but not as the employee asks.

Just make an appointment in 2-3 days.

3. Rate the contribution

Now you need to look at the facts.

This is easy to do if you keep statistics on the “product” – how much benefit the person has brought. If you don’t lead, you will learn about successes from your direct boss or colleagues. It’s better to talk about a measurable result, rather than listen to opinions.

Do not look only at the price of similar specialists in the labor market. Perhaps your person works for two, or, conversely, is engaged in “shifting pieces of paper.” Better look at the salary / result ratio of your other employees. This will give a better answer about equity gains than HeadHunter or SuperJob.

4. Estimate the budget

The budget allows + increase worthy = increase.

If the company does not have extra money for a salary, and the employee deserves it, there are 4 options:
Plan advance stock in advance;
Transfer the employee to an individual entrepreneur, if possible – save on taxes and pension contributions;
Take away the work from the ineffective and distribute among the productive (along with the salary);
Reduce the salary and increase the bonus in accordance with the achievement of results, so that the final salary is higher.
5. Discuss the decision with an employee

Do not hide the truth. If you do not want to raise your salary, because the employee is a lazy person, just say so. If you want to increase, but there is no extra money – suggest options.

And do not get fooled by manipulation. If in response to the refusal you received tears, threats of dismissal or blackmail, it’s better to say goodbye to the person.

Secret reception

The methods listed above work.

But any request for an increase is always time, money and a chance to be deceived. In general, I recently stumbled upon the courses “How to properly increase my salary” 🙂

Is it not better if this question does not arise at all? And in my company it does not arise. Long ago. The salary of each is fully tied to income and personal indicators. If you want more money – bring more benefits, help a neighbor or take additional functions.

In practice, the salary of my colleagues is growing in proportion to revenue growth. And the revenue is growing, because the employees do not care, and they themselves think about how to earn more. Such a nice “vicious circle”.

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