How to deal with a request for a pay rise.

News that some MPs are set to pocket another bumper pay rise will no doubt leave many employees asking “what about me?”

A recent survey from the Chartered Institute of Personnel Development revealed employers plan to increase the basic pay of employees by just 1.2 per cent in the 12 months to 2016 – down from a planned increase of 2 per cent.

It is said to be the lowest wage rise in two years, and down to low inflation and rising employment costs.

This comes at a time when reports suggest that senior MPs are in line for their third pay rise in a year.

For large employers pay scales and bonuses are set out in bands, if applicable, which is usually not the case with small and medium-sized businesses.

With employees now able to get expert tips online about the best way to ask for a pay rise, dealing with such a request in the right way is crucial to retain valued members of staff.

Having clear guidelines in place will ensure a consistent and fair approach to pay negotiations. If an employee has the confidence to ask, it is reasonable to assume they have done something that they believe is in need of recognition.

Employers should meet with the worker to gain a good understanding of the reason why they believe a pay increase is deserved. Listen to, consider and examine the details and do not rush the decision.

If an organisation is unable to grant the request at the time, then as an alternative it is worth considering reward schemes and other incentives or offering a delayed pay rise if agreed targets are hit.

Employers should adopt a proactive approach in order so that employees are fully aware of exactly what they need to do to achieve a pay increase. It can also help the business plan and budget for spending on staff wages and ensure a fair and transparent process is in place.