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Pay increase request

Question
Q. How do I respond to an employee who asks for a pay increase? 
Answer
You probably should take the inquiry seriously and allow the employee to explain why he or she is making the request. Listen and treat the issue professionally.

Sometimes, the individual is asking about a pay increase because the employer has failed to communicate to employees what the pay adjustment schedule is. Another reason the employee may be asking is that many firms customarily provide pay increases at specified intervals such as every 12 months. If the employee's 12 month employment anniversary has come and gone with no mention of a raise, the employee likely is concerned. This is another good reason to have a formal written compensation policy. 
Brain Trust contributor: Author of Improving Performance Results
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