Whether you’re hiring a new employee or a valued team member is looking for more money, there will be plenty of times in your career as a manager that you will need to discuss salary. But what should you know before going into the negotiations? While it may seem pretty cut and dry, there are plenty of things to consider before you make any budget-based decisions. Here are some things to keep in mind before you open up these conversations.
Be open to talking about raises.
If you want your employees to be able to talk with you about anything, you have to be prepared to talk about money. Don’t shut down the conversation when you’re approached. If an employee approaches you, you may want to take a step back first to ensure that you’re not doing anything to avoid paying them more money to show their value.
Share the way you made your decision.
Once you make a decision about salary increases, share your work just like you would in elementary school math class. The more transparent you are about how you arrived at your decision, the better your employees will be able to understand the outcome.
Listen to your employees.
When your employees ask you about money, listen to them. In many ways, by the time they’re asking you may have already missed the boat on providing added compensation in a timely way. So find out why their asking, how your polies are affecting them, and what you can do to be better about salary discussions in the future.
Do your own homework.
It is also a good idea for you to conduct your own research. Look into what other companies in your area pay employees in similar roles. Some of the best resources are Salary.com and GlassDoor. They can give you the details not only of salary but overall compensation packages.
Schedule a follow-up conversation.
Also, be prepared to have continued conversations. Money shouldn’t be a one-and-done discussion. You need to check in on your employees regularly to determine how they’re doing in their roles. Without this component, your team may become restless and start to look for other employment.
Are you ready to discuss salary with new hires or established employees? Contact Harvard Resource Solutions Staffing Agencies in Troy MI today.