When an employee asks for a huge raise

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Anonymous

10/30/20 at 12:27AM UTC

Career

When an employee asks for a huge raise

Someone on my team recently asked for a huge raise and didn't give a lot of explanation. We're talking almost half of her current salary that she's asked for. I feel like it was her way of telling me that she was about to quit because my company does COLA and just doesn't do raises. She presented her case which wasn't bad, but it just didn't account for the realities of our HR practices. What should I do? I could go and try to find budget for her to improve her pay but to me it almost feels like she's just basically giving me an ultimatum: pay me a whole lot more or I'm going to quit

21 Comments

Maryann Augusta

Consultant

10/30/20 at 3:54AM UTC

I think you need to remember who’s driving the bus. In this case it’s you. Unless this employee is irreplaceable, why would you go against company HR practices and try to find money for her? Sometimes when we deviate from protocol we make new problems for ourselves. That being said, I’d sit down and explain the situation with the employee. If you can give her a raise that’s aligned with HR practices I would because you seem to think she made a great case. But if you can’t she needs to know why. You can tell her you value her and her work efforts, but unfortunately it’s just not possible at this time because of (give her the reason).

Kat

238

FGB VIP - Sharing knowledge, providing support

10/30/20 at 5:09AM UTC

Sorry, but this is not the time for anyone to ask for a 50% raise, unless your company's revenues have skyrocketed in the last six months. Or she's responsible for increasing revenue or landing a huge client. If not, then first you have to decide if the employee merits a raise above the standard rate. Then decide how much over that rate, if anything, you think is fair after looking at the all the factors involved (compensation budget, revenue projections, HR input, etc.). Discuss that number with her and tell her what factors influenced the decision. If she's not happy with the number (or no raise at all depending on your decision) she's welcome to look at other companies. Though I doubt she'll be able to find one offering that type of salary increase at this time. Everyone's stressed and feeling the financial strain of the pandemic. If it's not possible to give her a raise, so be it. If you raise her pay that much, everyone else on your team will want to know why she got a huge raise and they didn't. Then you'll either have to scramble to find the money to give everyone similar raises or deal with a potentially unhappy team that might think you're playing favorites with her. Be honest but fair in your discussion and stay firm on your decision. We can't have everything go our way all the time. She needs to understand the realities of the situation better. It might help her to come up with a more realistic number next time she wants a raise.

1 Reply

Anonymous

11/03/20 at 12:23PM UTC

Respectfully, I disagree with your opening statement. There are too many assumptions to discount the employees’ asks. Firstly, she always has a right to ask for anything and judging by the mildl response of the manager, she may have strong points worth considering. The employee very likely has another opportunity (healthcare is BOOMING right now) and is giving the company the courtesy of a counter offer. And, we simply don’t know what she’s going through.. like suddenly becoming a single parent/income household? Or she found out she was the most qualified/underpaid on her team. As an HR Professional, I’ve literally been on both sides. I’m absolutely not saying the manager should comply with the request. Rather, remove the emotion and the visceral reaction to set the stage for a fair, unbiased negotiation.

User edited comment on 11/05/20 at 7:58AM UTC

Anonymous

11/01/20 at 3:25PM UTC

My company also does COLA raises only. It became an issue when new hires were being brought on board making more money than existing employees in the same positions. If that is happening, the company needs to adjust some salaries. Having to train a new coworker doing the same job but for more money causes a lot of resentment.

2 Replies

Anonymous

11/02/20 at 1:13PM UTC

Been there, experienced that. Stayed at my last company for 9 years until I was laid off for COVID reason (BS). Only had 2 raises in those 9 years, and they were no were close to COL rates. There was always resentment in the company over pay. Now I am at a new employer (almost 6 months now) and they give yearly COL raises, regular raises and bonus (that if financially able). New year ahead and I am praying for more money and better life.

Anonymous

11/02/20 at 3:39PM UTC

My current situation. New employees being brought in at similar positions at more than I am being paid after 18 years. My direct supervisor offered me an increase effective Jan 1. With COLA for 2021 it would bring me just over what the new employees are making. I requested a substantially higher rate and listed the reasons why I believe this is justified. He thanked me for the clarification. Now, I wait.

User edited comment on 11/02/20 at 3:39PM UTC

1 Reply

Tanisha

155

Strategic HR Leader

11/03/20 at 12:24PM UTC

Good luck!

Deborah Frincke

132

11/02/20 at 12:45PM UTC

At this stage, you are speculating. You could simply ask her what motivated the request for a raise, out of cycle, for such a significant amount, and have that discussion in person. It could be anything from momentary personal panic to thinking she is truly worth that much more. A story. A family friend didsomething similar with regard to a misunderstanding - she was very junior, her boss said something like "we are equal partners on this project", and took what was intended as cameraderie to be a true assessment of her job. There is no reason to guess or stress in a situation when a question could get you the information you need to respond with kindneds or firmness or rapidity, whatever is needed.

Mary Brodie

148

I help companies build customer relationships

11/02/20 at 1:11PM UTC

Have her job responsibilities changed? Has there been an increase? Often we forget how much people have taken on for work and see them as we did 3, 5, or 7 years ago. People grow. People don't just ask for a raise like that. There is some motivation. Most likely, she discovered she was underpaid to start and now is doing far more. She may have a new job in her pocket too and wants to see if you would pay her more on your own. You should definitely discuss what's going on with her. She also may have asked for 50% with the hopes of getting 25%. Lots could be going on.....

Leigh Ann DeLyser

Changing Ed Systems for Equitable CS Education

11/02/20 at 1:28PM UTC

You said she made a good case, so it sounds like either she did a comparative analysis and determined you are paying way below market rate, or she's making the case that her role/duties have changed. Either way, it sounds like COLA in this instance does not respect her as an employee. Consider a title bump if she needs on? Perhaps with an agreed upon timeline to get to the target salary if Covid makes it hard to do all at once. Pandemic or no, we need to respect the work our employees do or we will lose them. And if you are worried about comparisons to other employees, are you paying them below market as well? Do you have defined salary bands for roles? is there room for promotion and growth in your org?

User edited comment on 11/02/20 at 1:29PM UTC

Melissa

178

Helping women unlock their potential

11/02/20 at 2:06PM UTC

I would add that she may simply be negotiating. Negotiating can be a dance. If she deserves more because her role & performance warrant it, then research a raise and see what you can do. We all know (she does too) that she will not get 50% but she might get 10%. If she's worth it and a high performer, it would be worth trying to keep her. The hiring and training costs are expensive if you need to hire a replacement. Most of us (women) are uncomfortable with the male philosophy of negotiating but men ask for more and typically get more. I think that's what she's doing. She probably over did it with 50% but I'd continue the conversation. Good luck!

Anonymous

11/02/20 at 2:12PM UTC

As a recruiter I love COLA raises because it makes candidates easy to recruit. They eventually become dissatisfied because their hard work is not rewarded and it will be a reason to leave. Your employee might stick it out because of the current economy but you’re on track to lose them. If an employee can’t get a raise at their current employer, they’ll get it by changing jobs. In fact, this is a big reason why Millennials change jobs - to get more money. Americans have a record amount of personal debt, and the largest generation in the workforce is buried under student loans which are not discharged in bankruptcy. In the next decade you’re going to see some very cutthroat behavior from Millennials especially as they try to pay off student loans. If you or any other employer stands in the way of that you’re also inadvertently impacting their quality of life and they will take action. I wish you luck but I think you’re fighting a losing battle.

User edited comment on 11/05/20 at 12:20AM UTC

1 Reply

Anonymous

11/04/20 at 9:54PM UTC

Well stated.

Rebecca Lee V

2.11k

Credentialing Specialist

11/02/20 at 2:18PM UTC

If you do this, what will other people on the team think? They might want the same pay. If her responsibilities haven' changed and she isn't contributing any more than anyone else does she really deserve this? More money always equals more responsibility. Do you think she deserve this? will she produce or is this a way to say? I have an offer for this much if you cannot match it I'm leaving?

Anonymous

11/02/20 at 2:33PM UTC

Former HR Director, here. You should request that your HR partner or compensation team review her pay to market. In companies where COLA is practiced without regard to performance, high-performing, long-term employees suffer, in my experience. Over time, they become underpaid to the local market as COLA usually lags behind and all it takes is one cold call from a recruiter to start the process of leaving or planting a seed of bitterness that the company doesn't value him or her. Do not be shy about providing your input to HR because squeaky wheels get the grease, and while they will likely tell you there's nothing they can do for you, a strong outline of the cost of losing this employee and the difficult gaps that would be left behind can make brick walls suddenly fall away.

1 Reply

Valerie Craig

Conservation Leader in Washington DC

11/13/20 at 7:04PM UTC

I agree with this approach completely and it's what I've done recently when presented with similar scenarios. Have a real conversation with the employee to discuss any changes to the job description/duties that have happened over time, and ask HR to evaluate an updated job description to ensure the salary is commensurate with the job. Just granting a raise from a demanding employee will set a terrible precedent, but setting a transparent process that can be used time and again would go a long way towards employee satisfaction.

Sara Shapiro-Plevan

11/02/20 at 4:12PM UTC

I'm with Deborah and Leigh. I'd find out what's behind the request, to start. Has she been recruited by another company, and is her request for a raise because she'd really like to stay with you, but she's been offered a salary increase elsewhere? This is important data for you to uncover. Additionally, where you may perceive yourself/the company to be "in control," actually, if she has data that shows that she is being underpaid, after having done a market assessment/scan, she's in control. Data doesn't lie. If she's being underpaid and can go elsewhere (and may already have another position), she's right to ask for a raise that permits her to work at the rate she deserves. Do you have a salary structure/banding that anchors raises in a compensation philosophy? If you do, and you cannot give her this raise, it will be clear. But she's asking because she's negotiating with you. So it seems to me that it's clear to her you do not. You may also want to consider this as a signal that a compensation philosophy, or steps toward it, is a good place to start.

Lael Beckwith

11/02/20 at 4:26PM UTC

You have said that the case she presented doesn't reflect the realities of HR - That can mean a few things. I would suggest that whether you go to bat to get her more money depends on whether you think she is worth it. That will include a lot of factors, many already mentioned, like pay-to-market, any recent changes in scope to her job, etc. I suspect the additional 50% may not be her true end goal. At the end of the day, you should be paying her what she is worth. If you feel you're already doing that, then you should tell her so. If you don't, you should make the attempt to correct it.

User deleted comment on 11/02/20 at 5:27PM UTC

Anonymous

11/02/20 at 5:28PM UTC

Yeah, maybe she will quit -- but as many have mentioned, maybe she should! I'd reassess whether those COLA raises are the right move for your employees, too. And, has this year seen her doing a lot more work for no more pay? Because that was once me -- around the 07-08 recession, the company I then worked for froze raises and hiring, and then asked me to maintain my own responsibilities plus half of a co-worker's while she was on a year of medical leave, so I worked 5 days one week, 7 days every other. Three months into that, I sat down with my managers and asked for a very substantial raise to reflect the job-and-a-half I was doing, regardless of the freeze. They said no. I left, and I maintain that was the right thing to do.

User edited comment on 11/02/20 at 5:28PM UTC

Anonymous for a day

290

11/03/20 at 12:12AM UTC

I would start by researching her position on salary.com and see if she is currently being paid fairly. If she's not, you don't have to bother asking her why she's asking for a raise. If she is, I'd evaluate whether she's taken on more duties and responsibilities since she started. Is she making close to what her coworkers are making or is she substantially paid less? Sometimes people accept a lower salary just to get hired and realize they'll never get to where they want to be with COLA raises. In the back of my mind, I know I'm probably either going to have to move to another position or another company to make the money I would like to be and should be making with my degrees.

Erin Lawler

11/13/20 at 12:39PM UTC

As others have suggested, I would invite her to another discussion, where you focus first on learning the underlying motivations behind her request for a raise. Listen to understand, not to reply. Use open-ended questions: "What is important to you about a raise right now?" "Tell me more about that." Her responses may go beyond "more money" and will, I suspect, get at some of her values. She may be seeking: recognition of her hard work, assurance that she being treated fairly, financial stability for herself and her family, knowledge that the employer is invested in her, and so on. Once you know what's important to her, begin to brainstorm off of those values, taking each one in turn. Frame the issue as "how can we work together to...?" There may be options that go beyond a raise, for example: a title change, increased responsibility or participation on certain projects, investing in training opportunities for her, a change in her benefit package, etc. that would meet her needs. Good luck!