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    8 Replies Latest reply on Jan 19, 2010 8:49 PM by DebbyBlitzLoc


    marie11 Newbie

      We are doing raises now but I have one key employee that I feel has reached the maximum I can pay her and don't want to lose her. She manages my office and does the books as well but I can not afford to give her another raise. My son is also in the business and pulls his weight and expects a year heafty bonsus which would mean everyone in the Company would get a raise except my Office Manager. I can't afford to lose her. Any thoughts?
        • Re: Raises
          designer Tracker
          Hmmm. Not trying to be funny - - -but, I think that's called "overqualified"? People all need an incentive to work. If you want this person to stay - - you have to offer "something". Hitting the glass ceiling is never any fun. I look forward to seeing what some of the official HR people have to suggest. Good employees are always so grateful to have a job, but let's face it...we get up each morning to make money to live and pay the bills and we want to feel like we are growing and advancing and being challenged. Bottom line, in a 9-5 that's why people work. And, it really seems like you appreciate this person, too. Good Luck!
          • Re: Raises
            Bluesuit Adventurer
            If you can't provide a salary raise, are you able to provide a bonus? Even if the person reaches the "max," if this person is an exceptional performer and you don't want to lose her, you should compensate accordingly. Winners do not stay if they are not rewarded. However, if the budget is tight and monetary options are not possible this year, maybe you can reward in other ways - such as more vacation time, recognition, etc. We often think that money is the driving factor - surprisingly, people thrive on other things like recognition, titles, a better workspace, more vacation, etc. I'd consider these options if you can't provide a salary bump.
            • Re: Raises
              puzzleman Tracker
              Marie 11, Ask yourself a couple of questions. How much would it cost me if this person quit and I had to hire someone else to do their job? Is it more than you are paying here? What about the headaches of training a new person until they get up to speed? If you can't afford to lose her, then how can you afford not to give her a raise? When this person hit the maimum pay rate, did you let them be aware that they will not get another raise? If you can't give them a financial raise, is there other forms of compensation that would suffice (more time off, flexible schedule, etc)?

              Most important question. If you don't give them a raise and they quit, what is your plan?

              • Re: Raises
                Iwrite Pioneer
                I would look at a bonus system for her and increasing her vacation time off. I agree with everyone else, losing her will cost more than paying her something. Good employees are worth the effort to keep.

                Good luck.
                • Re: Raises
                  DomainDiva Ranger
                  So the family member expects a hefty bonus but you can't afford a pay raise or small bonus for your key person?????
                  • Re: Raises
                    Actiontips Newbie
                    Lots of good answers to consider regarding your super employee. Unless you have a financial problem in the business... I'd give her a raise in pay UNLESS she prefers time off or other perks vs money. Good employees are worth an increase in compensation and appreciation. All of us are paying higher grocery bills today as well as gas to transport us to your office. It's better to raise your prices than short-change dedicated employees that keep you in business.
                    • Re: Raises
                      Lighthouse24 Ranger

                      All employees should receive a periodic pay raise to keep pace with the cost of living. They should never expect a scheduled (yearly) increase for anything else.

                      Additional compensation should only come with (a) acceptance of more responsibility, (b) demonstration of greater competence, or (c) direct contributions to revenue (e.g., commissioned sales).

                      In a small business, there are practical limits to what you can pay for certain jobs. In my companies, if someone wants to earn more than that, it's understood that he/she will need to learn a new skill and then use that skill to either take over part of my job (freeing me up to build new business) or take over a job we currently outsource.

                      Your office manager deserves at least a cost of living increase. You're wise to worry that you'd lose her if you don't provide that. Beyond that adjustment, however, if she isn't doing more than a year ago, isn't doing it better than a year ago, and isn't directly making you money . . . well, that's the rationale you can use -- a person can "max out" in a job role. Consequently, you need to find out what else she wants from this employment situation that will make her contribution more valuable and her job more satisfying.

                      Also, confirm that all the other people really deserve raises by the above criteria. After all, if everyone was really doing that much more and doing it that much better, you'd be making ample money to cover their pay increases, right?

                      Welcome to the community. Hope this helps. Best wishes.
                      • Re: Raises
                        DebbyBlitzLoc Adventurer
                        Cost of living increases should be a standard practice in any business. Having said that, does this employee KNOW that she has reached the maximum wage for her position in your company? Did you discuss this limit with her at any point in her employment with you? If she knows from previous communications that she has reached the maximum, then asking her if additional time off or more flexible working hours would be acceptable as you do want to compensate her in some way. The big question is what does this employee already know? If she doesn't know that she has reached the max it is time to talk to her directly! She needs to know this position will not pay anything further! Let her make suggestions to you as to what would motivate her to stay in lieu of a pay raise.