How Do You Handle Salary Hike Requests When Performance Doesn't Match Expectations?

Hello Everyone,

My name is Rashmi, and I am new to the HR world. I recently joined a company, and it's been 6 months. I sometimes get confused about how to deal when an employee requests a salary hike and expects more than what his performance justifies. Although he performs his tasks well, as a team leader, we have not been seeing the desired results and project completions from his entire team for the last 4 months.

Effective Communication with Employees

Listen to him first and note all his points. Then, tell him that you will get back to him in a week after discussing his performance with his team leader. Write down his answers for each point and communicate them in a diplomatic way.

The Art of Communication

It's just a word game. It's based on the type of language you use while communicating with an employee regarding their performance or salary. Start with their positive aspects and then address areas for improvement in a motivational manner. Emphasize that the organization wants to see growth and exceptional performance, highlighting that they should stand out and shine like a star among their colleagues. This will help the organization recognize their talent and potentially offer them opportunities aligned with their aspirations.

All the best.

Team-Based Reward System and Individual Recognition

It is natural for an employee to negotiate for a raise when they are performing well. The problem arises when employees are not properly briefed at the time of selection about how they become entitled to incentives. You need to be frank and explain to them that the work culture is team-based, and it is the performance of the team that is rewarded, not individuals. Therefore, there is a need for support and sharing among team members to collectively achieve success.

You can call for a team meeting to foster team spirit among them. However, there is a risk in relying solely on team rewards, as individual performers may become restless and decide to leave. You can discuss this issue with top management and consider rewarding individual performances as well.

Regards,
B. Saikumar
Navi Mumbai

Involvement of Team Leads in Appraisal Process

While HR is invariably drawn into the scene of hike negotiations, it also has to be the concern of the respective Team Leads/Project Managers. In fact, primarily, it's their concern since it's they who will have to take work from the team members, and it's they who will get directly affected in case the individual doesn’t perform.

So, make the respective Team Leads & Managers a part of the Appraisal Process. Else, things are likely to go out of control as you move forward. It could become more of a blame game on who is responsible for a low performance rating—the Team Leads would blame HR & HR blaming them, though everyone knows that HR will only be laying out the broad contours of the process, and any hike is essentially based on the Team Leads' ratings.

I think Dinesh Divekar had suggested quite a few angles with respect to this topic in this forum on many occasions. Just use the 'What do you Need' feature at the top of this page. You are sure to get many earlier discussions & some that could just about suit your actual situation.

All the Best.

Regards,
TS