How do you guys handle it when a relatively good employee asks for an outrageous raise? I just had a guy who is being paid $18/hour ask me to be paid $28/hour. He’s a decent worker, but really not particularly skilled at anything. I have much more skilled employees that make less than what he’s asking for. This person does mostly odd jobs throughout the business. He said he came up with that number because represents a 10% raise for each year he has been here, though the math clearly doesn’t work on that; he would be at less than $24/hour even if I had given him a 10% raise each year.
I agree he deserves a raise, but that amount is crazy. I can hire much more skilled and competent people at that rate. I’m somewhat indifferent to whether he stays or goes, but I don’t see him really quitting as he and my office manager are a couple, and they like to commute to work together. I can handle things if both of them quit. Life would be less fun for a bit, it’s not the end of the world. I don’t see any real scenario where they will be otherwise able to work together like they do now.
Is getting a raise of 10% a year standard? I worked in finance for 12 years before owning a business and never saw a raise larger than 5% unless it was with a promotion that included more responsibility.
I think even 5% is generous and wouldn’t be automatic for most people. Obviously, if you have a superstar performer, that’s different, but somebody who is mediocre, or nothing special, I would have a hard time with some idiot coming up with his own imaginary math and something that ridiculous. it would probably make him even less desirable to keep around after that.
No, 10% is a really good raise. I give raises that: 1) cover cost of living increases, 2) recognize a promotion, 3) recognize increased responsibility, 4) adjust for a salary imbalance, or 5) recognize increased training and output. I recognize special achievements by giving a bonus at year end.
So my raises typically have been 2.5% to 3.5% for cost of living. This year they will be 5%. I’ve given bonuses as high as $12,000.