Employee Wants a Raise After 11 Months: How Should HR Handle This Request?

One of the employees in our company is asking for a raise within one year of his joining, citing a number of reasons. As an HR professional of the company, how should I convince the candidate to continue working at the current salary? If persuasion is not successful, what would be an appropriate raise to offer? I would appreciate some suggestions for addressing this issue.

Hi, It is very common for employees to follow up for an increment with HR with some hope. Have you communicated to the employee at the time of joining that he/she is eligible for an increment only after completion of one year? Not sure.

In case of such a request from employees, you should educate them that as per the Company's process, the increment will be processed after one year of service, even after the completion of the performance appraisal. Give them hope and also the tentative date/month from which the increment will be awarded.

The amount of hike that can be given is at your Company's discretion based on the performance of the employee and the Company as a whole. The normal industry norm is 10-15%, but it can be less. It is company-specific.

Hi Lakshmi Narayan,

The employee has already received the increment as per the company's appraisal policy but is not satisfied with it. Due to high traveling expenses, they are requesting a significant raise in salary as they have also received a good offer from another company.

Steps for Transparent and Fair Salary Negotiations

To handle salary negotiations transparently and fairly as an HR representative, follow these steps:

1. Gather information: Understand the employee's reasons for the salary increase request and their expectations.

2. Review company policies: Familiarize yourself with salary increment and promotion practices.

3. Assess performance: Evaluate the employee's achievements and contributions to determine if their request aligns with their performance.

4. Conduct market research: Compare the employee's current salary to industry standards.

5. Discuss growth opportunities: Emphasize professional development and long-term benefits.

6. Offer alternatives: Explore non-monetary benefits like bonuses or training programs if a salary increase is not possible.

7. Communicate limitations: Transparently explain any budget or policy restrictions, providing a timeline for future discussions.

8. Negotiate: Find common ground through compromise, considering smaller raises or incremental increases.

Remember, adapt these steps to individual circumstances and prioritize open communication and fairness throughout the process.