There are few things that can crush an employee’s morale like having a raise request turned down by his or her manager.
While there’s no way to guarantee feelings don’t get hurt, there are certain things finance managers can do to minimize the damage. Here are five of those tactics:
1. Consider the offer carefully
A hasty denial is a surefire way to offend or insult the employee. Reason: It looks like the request is simply being blown off. Instead, allow the employee to make his or her case and listen attentively.
2. Ask about the details
Has the employee taken on more responsibilities that you weren’t aware of? Has his or her pay fallen well below the market rate?
Even if you can’t bump up pay right now, it’s good to have that info on file for when you can.
3. Break down the decision
Carefully explain why the raise request is being denied and offer details if performance is a major factor. Good employees will appreciate the feedback and make the necessary changes.
4. Use work as a ‘reward’
If an employee needs to bolster performance to earn a raise in the future, give that staffer a project where they need to development new skills and priorities.
5. End it on a high note
Let the employee know you appreciate the initiative he or she took with the request, and do what you can to lift the person’s understandably low spirits before he or she leaves the meeting.