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.
Wish I had a nickel for every employee who thought they were underpaid. I suggest having a very cheerful talk with him. Yes, be cheerful. Tell him, “Bob, I agree that you deserve a raise. The only thing we disagree about is the size”. Then tell him what his raise will be. Don’t negotiate. Don’t patronize him. Don’t try to get him to agree. You’re the boss. Tell him this is what the job pays and if that’s not enough for him he’ll have to look around. And add that you would hate to lose him.
You didn’t ask. but a comment on your bonuses. I think it’s a mistake to give the same bonus every year. Unless it small, like $100 and a turkey. It becomes and entitlement if you do, at least in the employees minds. Vary your bonuses from year to year.