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.
I’m in the Bay Area as an electrical contractor. I start apprentices at 25 in the first 90 days probation period. If they have the attributes I need in an employee, I raise them to 30/hour with insurance and 401k.
I do raises and bonuses based on what the individual has accomplished. If I can leave someone on a job site after providing material and a walkthrough with minimal callbacks, I’ll bring them to 35/hour. If they can do their own material runs with guidance from me over the phone, they can make 40/hour. If they can get to a job site cold with a job detail and customers phone number, I’ll pay them 50/hour. If they can sell, and design jobs with little direction, I’ll pay them 60-65/hour plus job commission. Nobody gets raises just because they exist on a payroll.