Managing employee’s pay raise request – tips for effective communication

Employees have the right to request a pay rise at any time, for any reason. However, with the ongoing cost of living crisis and a recession on the horizon, employees may be seeking support to handle everyday expenses. Private sector wage growth outpaced public sector growth, but still falls below the inflation rate. So, what should an employer or manager do when an employee requests a pay rise? First, don’t react immediately. Take time to gather more information and consult with HR or other team members. Treat the request with respect, as it may be a make or break moment for retaining that employee. Be consistent with your approach and consider the employee’s past performance when making a decision. Encourage the employee to make a case for why they deserve a pay rise, and take notes during the meeting. Give a set time period for making a decision and consider non-financial alternatives, such as extra holiday or training opportunities. Regularly discuss pay with your staff and offer pay rises based on merit. Remember, a tailored approach to benefits ensures that employees feel valued and companies maximize resources.