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.
What if your employee reacts negatively to your decision, or threatens to leave? Remember why you made the decision in the first place. It’s a little like a candidate handling a counter-offer from their current employer when handing in their notice. If you change your mind and award the rise after all, in order to placate your employee, will the reasons you originally turned down the request remain?
Chances are, yes. Stick to your guns. Trust your judgement. That’s why it’s imperative you consider the implications before delivering your decision. If you really feel the rise is not warranted, but can do without the cost of recruiting and training, perhaps a nominal rise as a ‘gesture’ might do the trick. It may be your employee had no idea they were not performing to the standards required. A little bit of direction might turn them round, and turn a negative situation into a positive one.
Pay rises should not be begrudged. A pay rise is not just in recognition of past achievement, it’s an investment in the future and in staff retention. It makes your employees feel valued, appreciated and keen to develop their careers within your company. This in turn motivates them to perform better and increases company productivity.