When Your Star Employee Asks for a Raise

 

Keeping Spirits High When You Have to Say No

You have an excellent employee, Kathy, who is asking for a raise. How do you keep her motivated when you can’t give her what she is asking for?

You want to honor her request. Kathy is an excellent performer and someone you want to mentor for greater leadership. However, you’ve also just reviewed the budget and you know immediately that although she deserves a raise, the cash flow isn’t there to support it.

Be candid about the budget constraints, and tell her you still want to explore other options available right now, in order to recognize and reward her professional contribution.

Here are three tips to help you get creative in showing your support and vote of confidence:

1. Think outside the box. Offer Kathy something else of value. You happen to know that Kathy values free time to spend with her family. What about additional paid time off every year, or an option to work from home one day weekly? Both of these are great benefits.
2. Revisit her long-range goals and identify some short-term opportunities to help further these. Has she set her sights on a promotion or different role? You may be able to help more than you have thought. Identify a special project she can take on, or a taskforce in which she can participate, which will specifically help to meet her career aspirations.
3. Build trust by flagging her request. Share that you will revisit a raise for Kathy with next year’s budgeting that reflects an additional bonus based on performance. And remember to make good on your promise by putting a tickler in your calendar at the appropriate time.

You may not always be able to say “yes” to deserving employees in the way that they request. However, you can acknowledge their value in some of these other ways that will build trust in you and keep a star performer’s motivation high.