Employee Wage Increase Requests
CindyG
44 Posts
Just to give you some background, the company I work for is typically under the average (and even minimum) local salary ranges for many positions. We've had employees voice concern over their current pay rates and feeling that they are not being paid fair market value or what they feel they should be earning at this point and ask for a wage increase above and beyond the 3% they received at review time.
I have listened to their concerns and reviewed salaries in our local area using Chamber of Commerce salary surveys or calling local businesses myself to inquire about pay rates of comparable jobs. I'm finding that our rates are well under those of other companies. In order to remain competitive and keep good employees, I feel that compensating employees fairly is the right thing to do. If they leave, you end up having to hire someone else in at more money anyway.
Well, my boss who owns the company, dislikes these salary surveys and feels that while his pay may be under other businesses, employees should value the other positives about the company (benefits, flex time, good environment, etc.). While I agree with him on the other aspects of a job besides just pay, people can get those same good benefits AND higher pay somewhere else. His response is always, "Do we want to keep them then? If I'm going to pay more for them, then I want you to interview others out there, so we can have the best employee for that type of money." Well, of course we don't want to replace these employees, so me and the supervisors end up denying the employee the increase, without alerting them to the fact that the owner would rather fire them, then pay them more money. We talk about all the other positives of the company to try to satisfy them.
Can anyone offer any feedback to me on how you might approach this situation with the owner? I realize that people have a choice on whether they want to stay or go based on what they want to earn and if they stay, they have to accept what he is willing to pay them. My goal is for him to recognize the value that employees bring to the company and compensate them according to fair market value. Thank you!
I have listened to their concerns and reviewed salaries in our local area using Chamber of Commerce salary surveys or calling local businesses myself to inquire about pay rates of comparable jobs. I'm finding that our rates are well under those of other companies. In order to remain competitive and keep good employees, I feel that compensating employees fairly is the right thing to do. If they leave, you end up having to hire someone else in at more money anyway.
Well, my boss who owns the company, dislikes these salary surveys and feels that while his pay may be under other businesses, employees should value the other positives about the company (benefits, flex time, good environment, etc.). While I agree with him on the other aspects of a job besides just pay, people can get those same good benefits AND higher pay somewhere else. His response is always, "Do we want to keep them then? If I'm going to pay more for them, then I want you to interview others out there, so we can have the best employee for that type of money." Well, of course we don't want to replace these employees, so me and the supervisors end up denying the employee the increase, without alerting them to the fact that the owner would rather fire them, then pay them more money. We talk about all the other positives of the company to try to satisfy them.
Can anyone offer any feedback to me on how you might approach this situation with the owner? I realize that people have a choice on whether they want to stay or go based on what they want to earn and if they stay, they have to accept what he is willing to pay them. My goal is for him to recognize the value that employees bring to the company and compensate them according to fair market value. Thank you!
Comments
Maybe showing him the cost of turnover might help?
Other thoughts are to show the employment trends for your area, what competitors are doing, look at your future plans within the company and approach it from a business perspective - how will we grow the business if we're not able to retain and hire knowledge workers to make that happen.