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.
Check yourself and do the math.
What will you lose in productivity and hard costs to lose him, how long will it take, what’s the impact if you do lose him, what are the risks if you make a bad hire in the interim?
This is just a math problem.
For next time, fix the problem by having a clear pay, review, raise and bonus cycle that rewards tenure, productivity, performance and value.
Everyone in your company should know the financial benefits for exceeding expectations, what will happen if the do not meet expectations, and what will happen if they fail to meet expectations.