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.
Try to avoid the anchoring bias of his current pay rate. If you had to replace him and wanted someone of similar skill, how much would have to pay? Offer him that with an explanation, he’s right, wages have gone up lately and the current market rate for his role/skills is $X. You could always back it up with something from Glassdoor on average salaries for job title. Also, don’t forget to tell him you really appreciate the work he’s doing and keep up the good work (with a smile) :)