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 find it helpful to have a standard time each year when raises are discussed. Couple this with an annual performance review. This allows you to budget for raises across the organization and allocate resources appropriately. It also gives you an easy answer when someone asks for a raise out of cycle (e.g. “Thanks for the feedback. I’ll take it into consideration. We can discuss that in February during your annual performance review.”
You’re saying he both deserves a raise, and that you’re indifferent to whether he stays or goes. Those are a bit at odds in my mind. That said, if you think he deserves a raise, and he feels like 10% a year is the fair number, perhaps counter at $24 and show him the math (if you think he’s worth it and you can afford it).