I run a small business. We make widgets. We used to be a lot bigger but people are buying fewer widgets and the economy… blah blah blah.
I have two employees. Bob makes widgets and Sally answers the phone and does all the clerical work. The other day, Bob sends me vague, cryptic email the bottom line of which is that he wants a raise in pay. He references cost of living data.
Bob is payed pretty well (I think). His Pay, commission and benefits package has increased by more than 22% since 2001.
Before I got a chance to respond to the email, I received a call from a HR recruitment company looking for a reference for Bob. (!?) When I told the HR guy Bob still worked for me and had not suggested that he was looking to move, he apologized and said there must have been a mistake. A few minutes later, HR calls back and says: no mistake, Bob gave my name as a reference and will I answer some questions? I told Bob in an email that I had been called for a reference but he didn’t respond nor did he mention the matter at work yesterday.
This looks like he’s trying to secure a pay raise by making me fear he will leave. Why not just ask me?
So today, I have to tell him: Sorry your not happy, no raises at this time and don’t let the door hit you on the way out.
Anyone think I am missing something? (I know there is a lot of information missing)
Unless I’m way off-base, he won’t have planned for this outcome.
Unless you want to see him go, I think I’d leave out the “don’t let the door hit you” part.
But assuming that you are willing to let him go rather than give him the raise he’s asking for, I’d simply explain that the economic realities of your business simply don’t allow for a raise at this time, and perhaps not for the foreseeable future. I would also point out that while I would hate to see him go, I would certainly understand if a better opportunity came along and he chose to take it.
Then I’d point out some of the risks inherent in changing jobs, wherein new bosses and co-workers and working pressures and circumstances can all combine to make people wish they’d stayed where they were, and that unfortunately if he were to leave and then want to come back, a suitable opening may no longer exist.
It’s been my experience that once people find our you’re ready and prepared to see them leave, they do a 180 very quickly…unless they really do want to leave, that is. On the other hand, I think that your telling him “don’t let the door hit you” may very well cause him to feel that he has to leave. Either that or if he stays it will likely just cause resentment to well up and then have a negative effect on how well he does his job.
I guess you need to decide first what outcome you want.
Do you want him to stay? Or is the fact he’s looking elsewhere (even as a bluff) enough to make you want rid of him?
As SA said, if you say “you’re welcome to leave” chances are that’ll happen. Even if it doesn’t work out he’ll carry some hefty resentment around for a while.
Better to say “we’d love you to stay, and as soon as things pick up we can review salaries, but that’s all I can promise” but make it clear he won’t be “punished” if he swallows his pride and sticks around.
Unless you want to see him go, I think I’d leave out the “don’t let the door hit you” part.
I should have said that he is an okay but not great employee and it would be easier on me if he stayed. If he wanted to go, it would be an amicable parting. I’m not pissed that he is test the waters but I am puzzled by his “negotiating” technique.
Polite but firm, as he would probably be fairly easy to replace in these times it would be a pain to have to train someone … and this way he doesnt seem pressured to leave by your ‘don;t let the door hit you’ type remark.
I know the work relationships will be a bit strained for a while … but a polite come to jesus meeting about how and why he cant get a raise and explaining how he has increased his income by 22% since that date may make him realize he actually had it much better than most people.
What’s your basis for firing him? Is he performing his job inadequately? Is he working for the competition on the side? Has he committed an offense that he’s been warned is cause for termination?
I wouldn’t be so quick to terminate him. Instead, give the HR recruiter an honest evaluation of an employee who tries to leverage a pay increase with “interest” from another employer. I doubt very much the other company would hire him. So the guy’s left with his current job and his current pay and no other offer. Sucks for him, and you don’t have to go through the trouble and expense of hiring and training someone new.
I wouldn’t give any negative opinions to the HR guy either. I’d just say what you said here: he’s been a good but not necessarily great employee. Or you could say that your policy is to not give references, and say nothing.
Another +1 to Starving Artist. Also important to note that in this economy, the newest guy on the team is the easiest to let go so joining a new company right now might be risky. I knew a guy who left my company in March and promptly got fired from his new job. By that time, his job here had been filled.
I apologize for interrupting your thread for a brief public service announcement, but I’ve seen this on just about every thread on the SDMB in the last week and feel compelled to say something.
The past tense form of “pay” is fucking “paid.” There is no such word as “payed.”
You may now resume your regularly scheduled thread. Carry on.
Just be an adult about it. Tell him you can’t afford to give him a raise right now, but that if he wants to leave, you’ll give him a good reference.
That calls his bluff and puts the ball back in his court.
One of the wisest things I was ever told was this: “The best time to look for a job is when you’ve got one.” He’s just doing what’s best for him, which is what we should all do. He’s not trying to hurt you or your company.
‘Good, but not great’ could be construed as negative. AIUI, many places will confirm that someone works or worked there, and the length of employment. Beyond that, ‘anything they say can be used against them’.
I had a number of people pull that in the tech boom of the 90s. I told everyone of them the same thing ‘if you can get a job that pays you that, you should take it. I can’t.’
You say you can’t afford to give him a raise. OK, how much will it cost you to hire a replacement? And to train them? And suffer a drop in productivity until they are proficient? etc. Can you put hard dollar estimates on any of these? Would a raise be cheaper?
I don’t think he’s trying to negotiate w/ this HR recruiter. He probably has been looking at his finances lately, decided he needs to be making more, and hopes that he’ll be able to do so by staying with you. At the same time he’s putting out some feelers to see if he can make more somewhere else. No harm in that.
As others have said, just talk to him face to face (no more e-mails on the subject, they’re so impersonal) and let him know that you wish you could give him more but right now the money isn’t there and you understand if he needs to look elsewhere.
Out of curiousity,is his job skilled,semi skilled ?
Could you replace him more or less with anyone off of the street or would he have to be qualified ?
Oh and to answer the question, I’d give him a severe beating,let down the tyres on his car and shoot his dog.
It certainly seems to be a bumbling attempt to get a raise. Does he have much work experience? It sounds like he just doesn’t know how to go about determining his worth in a smoother manner.
Also, is the recruiter actually working with a company that wants to hire him or is he just pooling candidates for companies who might want to hire? Regardless, I think you should respond as Starving Artist has indicated, but, especially if he doesn’t have much experience, he might not realize that having a headhunter interested in references is NOT the same thing as having a company ask a headhunter to get references. In other words, a headhunter than wants references does not necessarily equal a job; a headhunter that has been asked by a company a candidate has interviewed wtih probably does equal a job.
If Bob were to do such a thing in a larger company just for a headhunter with no leads, he might well find himself out of a job without anywhere to go.
I surprised at the responses so far. I think what your employee is doing is ok and he’s just covering his bases. Here’s my take on it from Employee A’s perspective:
Employee A feels like he is entitled to a raise. He wants to ask you for it, probably would rather stick with your company anyways, just wants to be rightfully compensated for his time. Does his research, applies at other companies to see what the comparable rate is at other places so he has a base number to work with. New Firm offers him 5% more of what he’s making with You, so he now he can go back with you and negotiate a raise. He will say “I deserve a raise, the market is paying more with other companies, I’ve worked with you for 8 years, etc etc” You can agree or disagree and he can decide from there if he wants to stay with you or move on.
I don’t see why you are so angry about this. This is perfectly acceptable, I’d say rather common in the workplace. I’ve definitely lined up other jobs before I quit and tried to negotiate raises this way as well.
I think it is a little strange that he would put you down as a reference, while he is still working there. Are you very close to Bob? I would actually be a little upset that someone is giving out my cell phone number without asking me, especially for a reference they didn’t inform me of. But, I am not a small business owner, so my opinions may differ from yours.
Would Bob deserve a raise if he produced more work or brought in more business? Maybe this could be a negotiating point? Would it be possible to tell him no raises now,but if business pick up by x amount and stays above that amount for y months you can revisit these discussions? This sounds nice, but I realize it may not be realistic in your situation. Just throwing out some ideas.
When you do talk to him face-to-face. I would make sure to let him know that you think he is valuable to the company (if you think he is) and you would prefer to have him stay around, but there just isn’t enough money to give raises to anyone right now.
