A reader asks:
One of my employees has asked for a massive raise. He has good reasons for wanting a raise: His responsibilities have ended up being very different than what he was originally hired for, he’s been doing very well with them, and he’s definitely paid below market for what he’s ended up doing. We hired him at $15/hour for an entry-level position with no hard requirements, and based on some quick market research, I’d say the work he’s doing now is closer to the $20-$25 range, so I’m actually in favor of giving him a pretty substantial increase.
The trouble is that he’s asked for an increase to $40/hour, and he’s been here only for four months. That’s more than I make, and I’m honestly shocked that he thought this was reasonable to ask for. He says he did some market research, but that number hasn’t been supported by anything I’ve been able to find. Four months also seems like a short amount of time to me, but I don’t know if the significant change in duties should override that.
I want to advocate for my employee with our company’s owner (who is very reluctant to spend money), but I am suspicious that bringing the employee’s $40/hour request to him will make my employee (and potentially me as well) look completely out of touch with reality. Our owner is extremely hands-off—we’re all remote, and I talk to him maybe once every month or two for about 10 minutes. I told my employee that $40/hour was more than I make and gently suggested that asking for a lower number might be a better idea, but he shrugged that off and said he isn’t set on that number, but sees it as a good “starting point.”
Any suggestions for how to approach this?
Jobadvisor
Core Takeaways from the Advice
- Validate the premise, not the number: The employee's core argument—that their role has fundamentally changed—is legitimate. Separating whether they deserve more from how much they're asking for keeps the conversation productive.
- Anchor the conversation in data, not requests: Starting negotiations from an unsupported $40/hour figure risks distorting the entire discussion. Your independent research ($20–25/hour) is a more credible foundation.
- Transparency builds trust: Explaining your research process and reasoning to both the owner and the employee demonstrates fairness and reduces perceptions of arbitrariness.
Practical Next Steps
- Ask them to share their research sources: "I want to make sure I'm seeing the full picture—could you walk me through where you found the $40/hour benchmark?" This isn't confrontational; it's collaborative fact-finding.
- Clarify the role: Draft a brief, updated job description reflecting their actual duties. This creates objective criteria for evaluating compensation.
- Set expectations: "Based on my research and our budget, I can advocate for a range of $X–$Y. Here's how I arrived at that."
- Frame it as risk mitigation: "If we don't adjust compensation to reflect his actual role, we risk losing someone who's already performing at a higher level—and replacement costs would exceed a market-rate adjustment."
- Lead with your research: Present 2–3 credible salary sources (e.g., Bureau of Labor Statistics, Glassdoor filtered by location/industry, Payscale) showing the $20–25 range.
- Propose a phased approach if budget is tight: "Could we start at $22/hour now with a review at 6 months based on continued performance?"
- Reaffirm their value: "I believe your contributions are significant, which is why I'm advocating for this adjustment."
- Keep the door open: "If you have additional data that supports a higher range, I'm happy to revisit this."
- Document the conversation: This protects everyone and creates a paper trail for future reviews.
