There are some situations that are feared by all employers. Employees demanding an increase in their pay is one such situation. So, what is an employer to do when they hear that knock on the door? Well, they can try and apply some of these tips. Take some time to think Establish a system that allows employees to evaluate themselves. For instance, you can provide them with self-evaluation forms to be filled out in order to justify their demands. The benefit with such a system is that it creates time for both, you and the employee, to think things through. The employee has a standardised approach to measuring their own performance, while you have time to consider their demands. Pay rise requests are a sensitive issue and time needs to be taken to address it. You can’t make a rushed judgement. It might lead to some bad decisions and set the wrong precedent. Be honest It’s not easy for employees to walk in and just ask for a pay rise. They obviously have their reasons. Plus, it probably took them some serious courage to make such a request. So, when they walk in that door, appreciate their courage by being honest with them. Do not waste their time. Tell them that you’ll have a decision by the end of the day or the week and keep that promise. Your employee doesn’t deserve to be kept waiting. If you can give them a reason to say yes or no right way, then go ahead and do it. Your honesty reflects the organisation’s values and your employees will appreciate you for it. In fact, it will encourage them to be honest in their own self-assessment. Measure past performance All said and done, it's performance that determines an employee’s worth. Fortunately, you have the power and the authority to measure and comment on this performance. When an employee asks for a pay rise, simply measure their performance to make an informed decision. Has the employee met his/her targets? Have they gone above and beyond the call of duty? Have they added value to the organisation or any of its operations? If the answer is a resounding yes, the employee in question probably deserves the hike. If the answer is a no, don’t waste their time and let the employee know politely that they aren’t ready for a raise yet.
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