Having ambitious employees who have big dreams is every manager's dream. But if that ambition and requirement exceed their ability and experience, it will become a difficult problem for management, especially the issue of pay raise.
Managers have plenty of reasons to say no when an employee asks for a pay raise. Firstly, this is beyond the financial capacity of the business and second, the employee does not deserve a higher salary. Whatever the reason, the result is always the same, "somebody's not going to be happy".
So with the issue of pay raise for employees, how to solve it skillfully, both pleasing to the employees, and properly meeting the current conditions of the business? The following advice of Navigos Search will be very helpful in this regard.
1. Why do employees ask for a pay raise?
Pay raise is always the desire of every worker, especially in the case of financially difficult life and low wages that do not meet the minimum living needs. Moreover, when an employee has worked for a long time at a business or is promoted or moved to a new position, a pay raise is an issue that the business should deal with.
Pay raise is always the desire of labor force
2. Incompetent personnel will use resignation as reason to ask for a pay raise
In fact, after working for a long time at a unit, people often realize that it is difficult to achieve a higher salary if they continue to stay. Although they have embraced a heavy load of work, trying their best, but the results received from the business, the salary is still sluggish, not worthy of the value of contribution and effort.
In addition, colleagues often whisper to each other about getting a higher salary if they move to a new work unit. These things make employees believe that writing a resignation letter will be the best policy to improve their self-worth because then, if they want to retain employees, the boss will increase their salary.
However, those employees do not really understand that whether or not they get a raise and promotion depends on the value they contribute with their efforts, skills, and experience. Therefore, there are many employees, even though they have worked for a long time, but are always ordinary employees, nothing outstanding. This makes them feel depressed, and they want to risk their resignation to be “seen” by their boss and hold on to a raise.
There are many employees who use resignation as a reason to ask for a pay raise
3. Will refusing a pay raise retain employees?
A leader will never want to give a raise and promotion, or give great responsibility to employees who are always thinking of leaving the business. They only agreed to a pay raise to retain employees at that time, but in terms of credibility and trust, it seems to be gone. Just because an employee wants to increase his salary once, he accidentally destroys their own career, so is it worth it?
In their career journey, are employees sure that they only need a raise without promotion? Employees want a salary increase, businesses can completely meet that need, especially in the situation that there is a shortage of people and a suitable replacement has not been found. But in the long run, employees remain stagnant and have no growth.
Will refusing a pay raise retain employees?
4. How would a manager wisely give a pay raise?
Build a standard pay raise policy
If it is completely dependent on the individual manager's observation and consideration, it will make employees feel that they are being treated unfairly or do not understand why their request for a raise is denied.
Therefore, right from the beginning, businesses should agree on a process to increase wages for employees. It should be clearly stated who will make the final decision on salary adjustments for employees. In that process, there should be important factors such as seniority, work results, achievements, professional capacity and experience of employees,...
Use market information to evaluate pay raise decisions
Instead of relying on indicators of employee performance, managers should study data from the market about the position and the pay rate other similar organizations are paying for this same position. The latest data from the market will help managers determine if the salary being paid to employees is fair.
In addition, as a manager, you also need to compare with the current salary that is being paid for a similar position internally to avoid the situation of resolving the request for a raise for this employee but creating frustration for other employees.
Be clear and be transparent
In case employees claim benefits but they do not deserve to receive them, the first thing to do is not to disparage them, but to confirm the value they have contributed to the business. Employees always want to be recognized by the manager for their ability, so recognize their current capacity first. Then, frankly let employees know they are not ready or not qualified for a raise. Managers must have a plan in place that will help them achieve requirements they don't yet have.
You can say, “I think you are not qualified, the value created is not enough to be considered for a raise. But in the future, I should do these things, achieve such results, ... to have a higher income." That is a "mindful" answer of a manager. Give employees motivation, clear goals to strive for, but don't let them down because they haven't received a raise right away.
Motivate and care more about employees
As a manager, you also need to know the motivation of your employees by asking general and specific questions such as: What are you looking for, what is the most important factor to you at work, please imagine what one year from now you will do differently and stand out from the present, what success in your work would be,...
If employees want to be recognized, want to have a position in the business, want to have more autonomy in their work, ... then managers can do these things without raising their salaries right away. These questions also help managers create implicit goals that require employees to really work hard to achieve. Maybe that employee is not eligible for a raise, but you absolutely give them many other valuable things such as: transition to a new team with more autonomy, let them manage a small system, ... This temporarily brings employee satisfaction so that they prepare for their long-term goal, striving to achieve their desired salary.
Show your employees other value other than a pay raise
Show employees the value other than the salary they receive such as professional training courses, comfortable working environment, flexible working hours, etc. Show employees clearly how your business creates human values, a "playground" for all employees to live with passion, freely express their talents, the meaning of the work they are doing, its influence on the community, with each person's development...
Khi chứng minh cho nhân viên hiểu được làm việc tại doanh nghiệp, nhân viên sẽ gặt hái được nhiều giá trị khác ngoài tiền lương và họ sẽ muốn cống hiến nhiều, lâu dài hơn.
Have back-up plan
Some employees who are capable and hold important roles in the business often give themselves the right to demand higher than others. If the boss does not meet those requirements, that person will react negatively and negatively affect the overall work. If you have tried many ways but the employee still does not change, you should think about the option of choosing a replacement. Train, guide, and assign tasks to others in the group so that that employee no longer holds an "exclusive" role. And when they realize that they are not "the only one", their position can be replaced, they no longer ask too much.
Set clear expectations when hiring
All of the above problems may not exist and be ineffective if your business does not start solving it right from the recruiting stage. During the recruitment process, businesses should clearly state the roadmap for promotion and pay raise to ensure that all new hires understand clearly. They will know what they need to do to be successful and set realistic goals to get there quickly. Don't wait for the employee to ask, "Why didn't I get a pay raise?" then you start thinking about this.
Wise solutions to a pay raise request
And if your business is having difficulty in interviewing, building a recruitment process to find potential candidates, you can ask for the help of the headhunter team at Navigos Search.
Navigos Search's headhunter team are all highly experienced human resources experts with deep understanding of each field and industry. Our experts have the ability to bring your business's job postings to the right target in the industry who are looking for a job and easily reach potential but passive automotive engineering candidates.
When your business has the best candidates in the industry, it means you have the advantage to grow stronger than your competitors. Besides, with data of 375,000+ senior candidates and 85,000+ senior management - level candidates available and optimal recruitment solution, Navigos Search is confident to bring the most suitable and potential candidates for your company in a certain time.
Navigos Search - Vietnam's leading headhunter brand
Navigos Search's journey to find good candidates for your business will be simplified by the following recruitment process:
- Step 1 → Find out the needs of customers: Navigos Search sends you full service information, a team of human resource consultants, along with sample CVs, etc. Our consultants will visit your office/factory to better understand the nature of the industry, corporate culture and recruitment needs.
- Step 2 → Record service usage information: The two parties will sign a contract and confirm the positions the company needs to recruit. Find out the requirements, benefits, and specific hiring requirements for each position.
- Step 3 → Send candidate profiles to customers: Our team of consultants will base on your requirements and recruitment information to send you candidate profiles that meet the most recruitment criteria.
- Step 4 → Assist clients in interviewing candidates: Our consultants will stand with you in the interview rounds to select the most suitable candidates.
- Step 5 → Vacancy is completed: After the candidate has been selected, we continue to closely support the candidate in the process of preparing to accept the job and other relevant necessary stages.
- Step 6 → Continue to accompany and support: Navigos Search continues to accompany customers and candidates throughout the process of "achieving success after getting the dream job".
Navigos Search owns a team of professional and experienced consultants
Throughout our operation in Vietnam, we are proud to have supported many businesses and corporations to get the best quality workforce. Right now, if your business is in need of recruiting any other mid-level and senior-level positions, please contact Navigos Search to quickly get the most potential candidates!
Navigos Search - Vietnam's leading middle and high-level talent hunting company