Your company may be following a bi-annual or annual appraisal system but still, some employees may not be happy and satisfied. When such a situation arises, we know how awkward it gets for an HR or the manager. But, that shouldn’t make the way you deal with the situation wrong. In this blog, we are attempting to prepare you for situations like these. 

Here is what you should do when you receive a raise request. (even if you are not accepting the request). Let us start. 

  1. Don’t reply in haste with denial- The employee may have sent you an email or have conveyed his concern verbally, you should take your time. Ask the employee to give you some time to look for the possibility and discuss the same with the authorities. Even if you know you are going to say no, don’t make it evident right away.
  2. Do a pay audit- You should conduct a pay audit to check the pay of the employee and his co-workers. Using a payroll software will make it easier for you to do the pay audit. After doing the internal pay audit, you should be clear about the positions, experience, education, tenure, and salary. An internal pay audit should inform you if the employee compensation is fair or he is getting paid less than his co-worker. Check if this happened due to negotiations, or performance, experience etc. Make your pointers as to why you are willing to increase the pay and why not.
  3. See the market rates for the profile- Just in case, you feel the employee has some unrealistic expectations, you should do some more research. Check the market rates so that you know the prevailing market rates and how much you can raise.
  4. Check if the raise is viable- Some employees are prudent for the growth of your organization. There are a few employees who have performed exceptionally well, you need them in your company. If an employee isn’t making much of a difference with his work and you feel the salary is appropriate, you can refuse the request politely.
  5. Look for alternatives or perks- If the company is not in a position to increase the salary, it must find alternatives to show the employee his value. You can give them free meals, flexible scheduling, or more leaves than others. The employee may come late and leave early or choose to work from home.
  6. Come up with an offer- After doing the audit using a payroll software and deciding if you want to offer perks, raise in salary, bonus, incentives or some other perks, you should proceed with this step. If you are raising the salary and giving the perks, make an offer. Even if you are giving the perks only, make an offer and have reasons to support your action.
  7. Respond to the employee- Now that you are ready with everything, call the employee for a meeting by sending an email. Tell him that so and so was the best you could come up with and that you really appreciate their work and are looking for a long term association with them. 

We hope now you are up and ready to face the raise requests and be fair to each employee who raises such a request. Conduct the pay audit using payroll software and check the performance using HRMS software. All the best!

Published by Zoe Sewell