Interpreting ‘the news’
If you get a pay rise then congratulations. If you make a strong case then there is a good chance you will get what you are after.
However, if you get bad news, make sure you have a “reaction plan” ready. You don’t want to freak out and say something you will regret. If you are willing to move jobs, then that’s the plan but do it to your timetable. For those who want to stay put without looking like a push over, then the plan should be to ask for a non-pay reward.
Possibilities include time off to study, internal training or financial support for an external course, parking, a laptop or a company mobile phone.
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Awarding a rise
Granting a pay rise that you know will be well accepted is a positive activity. However, it’s vital to ensure your employee continues to work hard! If someone asks for a decent rise, and receives it immediately, there’s a real danger they may become complacent and lack the drive to continue performing well. While in the review itself, if you know you are ultimately going to give your employee what they want, then before you inform them, stress the importance of earning their pay.
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Declining a rise
Refusing to give someone the pay rise they have requested can leave you and your employee feeling unhappy. If you are turning down the request because you feel it is unjustified, and the employee walks away feeling dejected, they may just decide to up and leave. Without capitulating, you must weigh up whether the cost of hiring and training someone new would be better than paying the rise. Or, while declining the request, encourage your employee to stay. Explain carefully and diplomatically how they can improve and how you can help this improvement. Reaffirm their worth to the company and if necessary, set a date for a revaluation. Throughout this period, provide support and offer advice in order to keep them on the right track and stay motivated and loyal to the company. If your encouragement pays off, you’ll be more than happy to award a rise at a future date.
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Pay review time
Individual employees usually don’t receive a salary increase until July 1 or after but the paperwork is finalised in April/May. As to when employees become part of the process differs depending on the employer. Some companies tie pay reviews to performance reviews, which are usually carried out in June, while others do not. Either way, there is no reason not to do some prep now towards a pay rise. Ask your manager how the process works or call your HR department. HR don’t have power over your pay fate but they should know the process.
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