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Response to raise request

Question
How do I respond to an employee who asks for a pay increase? 
Answer
If an employee asks for an increase, listen well and then respond in a manner that is consistent with your compensation policy and pay increase structure. Listening is an opportunity to learn.

If the employee is correct and your compensation is out of line, rewrite your plan when appropriate. If the employee is out of line, consider well what they have to say and explain your position.

The clear and timely communication of a compensation policy can help prevent misunderstandings and discontent. Your best plan is to rely on a well-written policy and up-to-date compensation surveys to make sure your plan is fair and competitive. 
Brain Trust contributor: Author of Improving Performance Results
Related Categories: Human Resources, Management
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