It seems that the improving economy, better job prospects and the higher demand for skilled workers are giving professionals more confidence in their ability to gain greater compensation and reach a higher rung on the corporate ladder. As a result, they're thinking about what's next in their careers, and they're approaching their managers about how the company can help them grow professionally.
So if you haven't already started fielding employee appeals for pay bumps and new titles, you probably will soon. And it's always better to be prepared than surprised when an employee comes to you and asks for a raise or a promotion. Here are the three most likely scenarios you'll face, along with tips to guide you through each one:
You're in the position to give a raise, and the employee has earned it. In this situation, you should consider approaching the employee before she comes to you. After all, you want to do everything you can to keep your key team members on board.
Before initiating the meeting, though, find out what the market is paying for certain skills, and benchmark the average finance and accounting salaries for your region with resources like the Robert Half 2015 Salary Guide. Make sure the raise or promotion you're planning to offer is in line with what top performers are making.
Then, invite the employee for a face-to-face meeting. Start out by highlighting his accomplishments, and don't forget to tell him how much you appreciate his contributions. After you've detailed the salary increase or promotion you have in mind, ask him whether he has any thoughts about his career path; this can be a good time to mentor a key player on your team.
The employee has earned a raise or promotion, but the company can't provide it right now. It's never easy to turn down a request from a deserving employee, but there are ways to soften the blow. When you encounter this scenario, first try to help the employee see the big picture. She may not fully understand that the business environment in your company isn't right for a raise at the moment, or that the firm's financial situation can't support it.
Then talk to the employee about other perks, besides a raise or promotion, that could help improve her job satisfaction. You might be able to give her more vacation time or a flexible schedule, if your company allows it. You could also help her pursue training or continuing education that would put her in line for future promotions. Or, if you give an annual bonus, you might be able to increase it, or provide her with a spot bonus.
You can give out raises or promotions, but the employee hasn't yet earned it. If this potentially awkward scenario isn't treated properly, it can lead to hurt feelings and a drop in morale. If it's handled well, however, it can allow you and an underperforming employee to forge a better working relationship.
How? An employee may not be living up to expectations because he doesn't quite understand how to turn his average performance into a great one. So use the raise or promotion request as an opportunity to help the employee take that important next step.
First, reinforce your expectations of the employee. Then, set reasonable future goals for him, and explain how a pay increase or higher rank might result if he meets those goals. Finally, set up regular check-in meetings with the employee, during which you can talk about his progress and performance.
Discussions about raises and promotions can be nerve-wracking for both you and your employees. But if you're well prepared, they can also provide you a chance to thank them for their valuable contributions and help them identify future advancement opportunities.
