How to Handle Demands for Raises

How to Handle Demands for Raises

It can create stress when an employee demands a raise. Particularly if it involves a raise that's more than you think they deserve. Raises should be based on individual merit, accomplishment and value to the practice. Not on the amount of time spent on the job.

Keep in mind, that if you pay bottom of the barrel wages, you'll attract bottom of the barrel staff. This doesn't mean that you should pay more than the practice can afford, but it does mean that you need to be competitive with pay and benefits. If you give a cost of living increase to your staff; you should also increase your fees in order to keep your payroll amount in line with your other practice expenses benchmarks.

So what happens when an employee who is making $23/hr comes to you and asks for a $3/hr raise to $26/hr?

“I want a raise to $26.00 an hour,” they tell you.

Here is what you can say:

“Okay, let me give it a little thought, and you and I can meet and talk about it on (day) at (time).” Give yourself a day or two to think about it, and make sure to keep your promise to meet with them on the day and time that you said you would.

If they deserve a raise. Give it to them. Then, look at why you didn't give them a raise sooner.

If they deserve a raise, but not as much as they are asking, or if they don't deserve a raise, think about what this person would have to do in order for you to be happy paying them $24/hr, $25/hr, and $26/hr, respectively and make a list of these items. It can include things like: additional training, more efficiency, better relations with patients (you will need to list specifics on something like this), better management skills, an increased level of personal production, increased software proficiency, an increased level of practice production in their area, if this is something that they are responsible for -- whatever it is that will make you happy to pay them more.

Make sure that you set specific, objective targets. It's important that you don't leave any targets subjective, or you'll have problems down the road.

Keep in mind that some people will be happy with any kind of a raise, especially if they can see a realistic path to making more money. If you feel that they deserve some kind of a raise, give them that raise when you meet.

At your meeting, give them a piece of paper and a pen and tell them you want them to make a list of what you are about to tell them.

Then say: “I've given it some thought and I'd be happy to pay you $26/hr. But there are some things that you are going to have to do to get to that point. Let's take a look at what you will need to do.”

Here's an example of what you can say: “I'm going to give you a one-dollar an hour raise immediately (if they deserve it). That will put you at $24/hr. In order to get another dollar an hour raise to $25/hr, I will need you to do (the first set of items on the list – tell them what they will need to do, and have them write it down). “When you demonstrate that you can do this consistently, I will raise you to $25/hr. When you demonstrate that you can do (the next set of items on your list), consistently, I will give you another dollar an hour raise to $26/hr. This gets you to your three-dollar an hour raise. All you have to do is consistently make all of these things part of your regular functions in the practice.”

If they are being paid at the top level that can be expected for their position, you need to tell them this. In order to be paid more, they may need to acquire additional skills. Counsel them on this and suggest some skills that will make them more valuable.

Have them make a copy of the list and give it to you to file in their personnel file. Give them a copy of the list so that they can track their progress.

Now, instead of this person coming to you, demanding money, the tables are turned, and you can be nudging them to complete the items on the list so that they can get their raise. Then, as they achieve the goals that you have set for them, give them the raises that you've promised. This lowers your stress and gives your staff a way to get paid what they want to get paid, because they will have increased their value to the practice.

ExecTech delivers personalized service, customized to fit the needs of your practice in a flexible, affordable program, to help you move forward with your practice goals.

Get more useful and personalized information from ExecTech to improve your practice by filling out our Practice Owner Questionnaire. You can also book a call with me here to discuss your specific demand for raises or other practice questions. I look forward to chatting with you.

Best Regards,

Mike Graves, Senior Consultant

(800) 340-6737

mikeg@exectechweb.com

Texting welcome (831) 888-6259