When this conversation happens, avoid blowing them off. Here are 5 things you can say to steer the conversation in the right direction.
- “Tell me more.”
Avoid reacting immediately, regardless of whether your response is positive or negative. You may need to get approval from someone else before making a final decision, so it’s best to wait to give an answer until you know so you don’t raise false hopes. You also want to avoid discouraging the employee as soon as the topic comes up. Take the time to actively listen to his or her request and reinforce that you value his or her contributions. When you say “tell me more,” it tells the employee you’re listening without undermining your authority as a decision-maker. Take notes on what they say and be conscious of your body language so you don’t send a negative message.
- “I appreciate your request.”
Acknowledge the fact that the employee has taken a risk and initiated the conversation to ask for more money. He or she may be testing the waters for higher compensation in his or her current role before accepting a position elsewhere, so consider the request with retention in mind. If the employee’s role or performance doesn’t warrant a salary increase, it’s still important to treat him or her with respect, listen and consider the reasons for the request.
- “I’ll get back to you in two weeks.”
Instead of giving an answer right away, let them know you’ll consider what they’ve presented and provide a reasonable date when they can expect a response. This gives you time to review the reasons behind the request and do your own due diligence into the employee’s performance. Look for above-and-beyond performance, internal equity of keeping that employee on board, and the fair market value for that role. Dig into salary data for your industry, validate the specific results the employee has achieved, look at how long he or she has been with the company, and consider how difficult and/or time consuming it would be to find a replacement.
- If the answer is yes: “We discussed your performance, and we believe a raise is warranted.”
Be sure to base your answer on the research you’ve done, and never on subjective feelings. Oftentimes, employees talk amongst themselves, so others may be watching to see how things turn out. Be clear about why you considered the request and emphasize that it was a decision based on the value of the employee—not on how hard he begged for it.
- If the answer is no: “We considered your current role and responsibilities, and we believe your compensation is appropriate.”
Walk the employee through each of the arguments presented and how you evaluated those claims, in addition to how you conducted your own research. Take the time to explain how you took the request seriously and gave it careful consideration because each employee is a valued member of your team and of the company. Explain the compensation process and offer suggestions for increasing the chances of a yes the next time they ask.
What Not To Do: One Terrible Way to Respond to a Raise Request
If you don’t feel it’s warranted that this employee is making a request for a raise, it’s easy to feel irritated. Still, the employee has likely put a lot of effort into preparing for the discussion and he or she probably feels vulnerable.
And that’s why you should never criticize the employee for asking.
Even if your company is in a hiring freeze, or the department budget is tight and the answer is no, you can still communicate how you respect the employee’s contributions and provide helpful feedback based on your knowledge of his or her performance.
Good managers will help employees reach their potential and make valuable contributions to your company. Whether the answer is yes or no, discussions about compensation can serve as beneficial coaching opportunities. Don’t miss the chance to help your employees become more effective contributors—no matter what your answer turns out to be.
