Valuetainment - July 11, 2022


What To Do When An Employee Asks For A Raise


Episode Stats


Length

10 minutes

Words per minute

230.85457

Word count

2,497

Sentence count

160

Harmful content

Misogyny

2

sentences flagged

Toxicity

6

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, I talk about what to do when someone comes and asks you for a raise and why you should give them a raise. It's a tough question, but there are certain circumstances when you should actually entertain the idea.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
00:00:00.120 So you know, a lot of times managers, CEOs, executives don't know what to do when one
00:00:03.260 of their employees comes and asks for a raise, and you screw it up.
00:00:06.520 There are certain situations where somebody asks you for a raise in a certain way, you
00:00:10.280 ought to say, absolutely not, and move on.
00:00:12.880 But there are certain circumstances, and the way they do it, you ought to actually entertain
00:00:16.160 the idea.
00:00:17.160 We're going to talk about that today.
00:00:19.880 Okay, so stick around until the very end to get a PDF of exactly what to do when someone's
00:00:31.060 coming and asking you for a raise.
00:00:32.260 But let's unpack this whole conversation of what happens when people come and ask you
00:00:35.260 for a raise.
00:00:36.260 First of all, if you're a small business, the employee is going to come and ask you
00:00:38.720 for a raise because you've got three, four, five employees, right?
00:00:41.680 But if you're running a decent-sized business, say 50, 100 employees, it's generally going
00:00:46.120 to be one of your managers that's going to come up to you saying, hey, Bobby, ask me
00:00:49.860 ask for a raise, what should we do, et cetera, et cetera.
00:00:52.620 So it's either Bobby asks manager, manager brings up to C-suite, C-suite says, we got
00:00:57.720 a guy here that's asking for a raise, okay?
00:01:00.140 Or your middle manager is going to ask the C-suite, and the C-suite brings it up to you.
00:01:03.920 Or the C-suite says, hey, I kind of want to talk to you, here's what I'm looking at.
00:01:07.560 So depending on size of business, circumstances can change.
00:01:10.420 But here's a few things to be thinking about.
00:01:12.520 So anytime anyone's coming and asking you for a raise, put everybody in four different categories.
00:01:17.340 One category is high trust, high specialized.
00:01:20.100 This is somebody you trust.
00:01:21.100 This is somebody that's a very good employee for you.
00:01:24.020 They're a superstar.
00:01:25.020 They're a rockstar. 0.99
00:01:26.020 They're kicking ass. 0.94
00:01:27.100 They're doing so good for the company that almost they should never ask you for a raise. 0.98
00:01:32.500 You should give them a raise.
00:01:34.100 Okay?
00:01:35.100 You ought to right now watch this video and say, let me make a list of the guys that
00:01:37.680 I want to go up to and give them a raise.
00:01:39.400 And you go do that.
00:01:41.440 It's not good for them to come and ask you for a raise.
00:01:44.100 Remember, this is highly specialized, highly trust, positive attitude, reliable workers
00:01:50.440 going above and beyond.
00:01:51.440 Been with you for a while.
00:01:52.940 They've made money.
00:01:53.940 They got results.
00:01:54.940 They got everything to do with data, with attitude, with developing leaders up here.
00:01:59.820 Second one is the people that you have that maybe you're not aware of that somebody may
00:02:02.640 be recommending.
00:02:04.100 They're doing a good job.
00:02:05.100 They're not the highest.
00:02:06.100 They're not the highest specialized, not the highest trust, reliable, but they're good
00:02:09.420 employees that you have.
00:02:10.420 Then it's those that if they ask you for a raise, you can let them go.
00:02:13.100 If they don't ask you for a raise, they're going to do their job.
00:02:14.920 Maybe you'll just give them a 3% to 5% raise and a small bonus.
00:02:18.880 Then it's the bottom one of people that you kind of got to be proactive and fire and let
00:02:22.140 them go, right?
00:02:23.280 So whoever asks you for a raise, first things first, you put them in different boxes.
00:02:26.440 Is it the first one, second one, third one, fourth one?
00:02:28.280 Okay?
00:02:29.280 So that's that part.
00:02:30.280 Now, obviously whichever one it falls in, you know what to do and you have to make a decision
00:02:33.560 on what to do with that individual.
00:02:34.720 But let me go a little bit deeper than that.
00:02:36.480 So if somebody comes and asks you for a raise, immediate reaction, let's see how they're
00:02:39.520 asking you for the raise.
00:02:40.520 If they say something like this to you, one of my employees, and I've been in business
00:02:45.600 for 20 some years now, and I watch how people ask me for a raise and I watch how some of
00:02:50.420 them did it every year.
00:02:51.520 Well, I had one example of a guy that would do it in the following way.
00:02:54.780 Every year, and I didn't know at this time how to handle it.
00:02:57.440 Every year he would say, I got a job offer from this recruiter that they're willing to
00:03:01.900 pay me $80,000 and you're only paying me $60,000.
00:03:04.920 But if you pay me $80,000, I'll stick around, I'm like, oh my God, what do I do in this situation
00:03:08.320 here?
00:03:09.320 So I give him the $80,000.
00:03:10.320 Then I noticed second year, guess what he did?
00:03:12.320 Same exact script.
00:03:13.320 There's a company that just reached out to me and they're willing to offer me $100,000
00:03:17.320 and if you don't give this to me, you know, I mean, you know, I love this company, but 0.98
00:03:20.520 I'm like, oh shit. 0.96
00:03:21.640 So I went to $100,000. 0.97
00:03:22.640 Do you know what eventually happened to me with this person?
00:03:24.960 They used the same tactic four times until I finally said, nope, I suggest you take the job
00:03:30.160 and you move on all the best to you because that person was never all in.
00:03:34.400 That person was just using that tactic.
00:03:36.720 And years later, I found out that we had an executive that was teaching everybody on how
00:03:42.680 to come ask me for a raise and it was in a way to ask for the raise, but with threats
00:03:48.360 and another offer and the CEO gets cornered and the CEO doesn't know what to do.
00:03:52.800 Then the C-suite executive or the middle management, it wasn't really a C-suite, but the management
00:03:57.000 person would come up to me and then say, well, listen, if you don't, we really need this
00:04:00.360 person.
00:04:01.360 We really need this person.
00:04:02.360 We really need this person.
00:04:03.360 Two years after that person left, the three people came and told me how that person coached
00:04:08.880 them on how to come and ask me for a raise and they would have their back.
00:04:12.160 So what does this mean to you?
00:04:15.760 Sometimes your structure of how you give people a raise, if you don't have structure, your management
00:04:23.320 is going to create the structure on how to get raises because if you're the CEO, if
00:04:28.480 you're the person who runs the company, there's management here and then there's everybody
00:04:31.360 else that's asking for the raise and they go through this person.
00:04:34.080 If you are not on the same values and principles, this person's creating it to everybody because
00:04:38.680 he or she is trying to keep loyalty from these guys and the way they keep loyalty is not
00:04:43.320 high level leadership.
00:04:44.320 It's actually very low level leadership.
00:04:45.760 They do it the following way.
00:04:47.320 Don't worry.
00:04:48.320 I'm going to help you get a raise. 0.53
00:04:49.320 Go ask Pat for a raise and blah, blah, blah, blah, blah, here's how to go ask Johnny for
00:04:52.680 the raise.
00:04:53.680 First, talk to a recruiter and get some kind of an offer letter from another company and
00:04:57.920 then give it to me and then I'm going to go and say, I think we're going to lose this
00:05:00.360 person.
00:05:01.360 So here's eventually what happened.
00:05:02.700 I paid attention to all the managers I had and say they all have 10, 15, 20 different employees.
00:05:08.940 Why was one of them getting more people coming to me with a threat of leaving over others?
00:05:14.340 Then I said, something's a little bit fishy here.
00:05:16.820 Someone's training.
00:05:17.820 You know what I'm saying?
00:05:18.820 Someone's training them on how to come and ask me for a raise.
00:05:21.480 So then I went and had a conversation with the level management, that manager.
00:05:25.740 Then I started calling everybody that was asking for a raise directly, overlapping them,
00:05:30.220 just to have a conversation.
00:05:31.220 So tell me, how did you get in contact, how did the recruiter get a hold of you?
00:05:37.200 You know, it's just, how did you find out about the recruiter?
00:05:40.820 Well, you know, this, this, I said, okay.
00:05:42.740 So then I created criterias and here's what the criterias are seven pointer, create a seven
00:05:49.160 pointer employee for yourself.
00:05:50.660 Whatever the seven pointers may be extremely specialized.
00:05:54.040 Number two, extreme high attitude.
00:05:56.080 Number three, always show up on time citizenship, right?
00:05:59.500 Number four, you know, there are great leaders.
00:06:02.720 They develop other leaders.
00:06:03.860 Number five, you know, it's somebody that's been around the company for two years who is constantly gone above and beyond, whatever.
00:06:10.780 Number four, create your own seven pointer and then tell yourself, when people are going through this, I'm willing to make an offer to people that are five pointers or higher, not anybody below a five pointer, right?
00:06:21.400 Number two, get all your management to be on the same page when it comes out to offers.
00:06:26.000 Because if somebody comes to you and tells you they got an offer from another company and you give them that offer back, they're going to come back to you again six months from now, 12 months from now, 18 months from now.
00:06:35.940 We had somebody three years ago, got hired, two months later, we gave them the $20,000 raise because that person moved up to a different department, changed their profile on LinkedIn, right when they changed their profile on LinkedIn, contacted a recruiter saying, I'm now such and such position.
00:06:51.720 The recruiter found them a $98,000 a year job with $30,000 bonus.
00:06:56.880 Then they came up and said, if you don't give me this position, I'm going to go over here.
00:07:00.100 Then eventually I said, I'm not giving you a raise anymore.
00:07:02.500 It's done because just three months ago, you were at such and such.
00:07:06.700 Now you're asking me for this.
00:07:07.700 Now you're playing games.
00:07:08.900 I don't appreciate that.
00:07:09.900 We're good to go.
00:07:10.400 We wish you nothing but the best.
00:07:11.600 Go ahead.
00:07:12.100 Oh, no, no, no, no, no.
00:07:12.900 I wasn't really taking that job.
00:07:14.100 Oh, you're not?
00:07:14.600 No, I'm not.
00:07:15.600 You're not taking a job?
00:07:17.100 I'm not taking a job.
00:07:17.900 So now you're not taking a job.
00:07:18.900 I'm not taking a job.
00:07:19.900 So then that's when I said, this is not the right person.
00:07:22.400 We have to move on and go find somebody else and we have to replace her and we got somebody else to move on the company. 0.93
00:07:27.800 Here's what you have to realize.
00:07:29.800 The more clear you are about this process when people come to you, the better you're going to do.
00:07:35.200 People are going to come and recommend.
00:07:37.200 I prefer recommendations.
00:07:39.000 This is what I prefer.
00:07:40.400 I prefer a management coming and recommending somebody to get XYZ.
00:07:44.400 Every single year, this is how we do it.
00:07:46.900 I go through a list of all our employees.
00:07:49.200 We have a clear structure on bonuses and management will come up to me and say, I believe this person hit this person at their goals.
00:07:56.600 25% was linked to EBITDA profits.
00:07:58.600 25% was linked to top line revenue.
00:08:00.600 We hit our goals.
00:08:01.600 The other 25% was their OKR and the other 25% was whatever.
00:08:05.600 They get 50% the goal, which is 20% their salary.
00:08:08.800 You're making 60 grand, 20% is 12 grand, 50% is 6 grand.
00:08:13.200 Here's $6,000 bonus.
00:08:14.200 Awesome job, Johnny, for the work you did this year by hitting your criterias, right?
00:08:18.200 And then, I think this person deserves a 5% raise.
00:08:21.200 I think this person deserves a 10% raise.
00:08:23.800 I think there's a new position I want to move this person.
00:08:26.200 Great leaders at the top, how to be thinking about how to help their guys move up constantly.
00:08:31.800 That's what great leaders at the top do.
00:08:34.900 When you do that, you're moving people up, ain't nobody thinking about other offers.
00:08:39.460 Some people are going to go out there and work at places to get a resume to constantly get
00:08:42.760 better jobs and get salaries, and they're not really the best employees.
00:08:46.040 They just know how to work the game.
00:08:47.260 They're eventually going to get caught.
00:08:48.760 Just so you know, the market doesn't favor people like that.
00:08:50.740 Because if, let's just say, you're worth only 60, but someone's paying you 110, you're
00:08:55.320 eventually going to get exposed and get fired.
00:08:57.280 And you think, you know what's worse than, wow, I was able to land $110,000 a year job.
00:09:01.240 But you're really only a $60,000 a year specialty guy, you're eventually going to come down
00:09:05.200 here.
00:09:06.200 It's very embarrassing when people realize this, because that's when people start putting
00:09:09.000 in their resumes a gap, yeah, I took a year and a half off to take care of my mom because
00:09:13.240 she was sick.
00:09:14.240 No, during that year and a half, you had three jobs, and none of them worked up because
00:09:17.300 people realize you're full of it, and that's why you said you had a year and a half gap.
00:09:20.740 People are eventually going to figure out who the best employees are and who the best
00:09:24.200 talent is, and those guys are going to be fine.
00:09:26.360 The rest are going to get filtered out.
00:09:28.120 It always happens.
00:09:29.660 When the market is doing good, people get lucky and land good salaries.
00:09:32.980 But if you cannot perform on the expectation that you have, you'll eventually be fired.
00:09:37.420 So again, this is going to happen when people do come up to you and somebody's asking you
00:09:41.280 for a raise, ask them, can you put it in an email and tell me why?
00:09:45.480 How do you think you qualified to get a raise?
00:09:47.620 Here's what was expected of me.
00:09:48.800 This is what I've done the last 12 months.
00:09:50.660 Here's what I improved in this area.
00:09:51.940 Here's what I've done in this area.
00:09:53.220 I think for this, I'm asking for this.
00:09:55.220 I love the company.
00:09:56.220 I love being here.
00:09:57.480 If you notice words that are threatening words, don't negotiate with threatening words.
00:10:02.060 If you don't, I already have five other jobs lined up.
00:10:03.980 You just tell them, listen, man, it's awesome.
00:10:05.900 Can you imagine you dating somebody and they say, look, I love you.
00:10:08.540 I'd love to marry you.
00:10:09.460 But if you don't, I got three other guys that are waiting for me to date them.
00:10:12.780 But I really love you, babe.
00:10:13.860 I really want to be with you.
00:10:14.860 Like, wait, what?
00:10:15.980 You got three guys?
00:10:16.980 Let me call them for you right now.
00:10:18.260 Go.
00:10:19.260 I wish you nothing but the best.
00:10:20.260 I never had you in the first place, right?
00:10:22.260 So you have to be aware of that while you're hiring, retaining, and working with people
00:10:27.900 who are asking for a raise.
00:10:29.260 So I talked about a lot of different things.
00:10:30.460 If you want all of this on a PDF, click over here to subscribe and get the whole PDF.
00:10:34.480 And number two, if you want to watch another video that has to do with how for you to ask
00:10:38.880 for a raise, click on this video to learn how you can ask your boss for a raise.
00:10:44.200 Take care, everybody.
00:10:45.200 Bye-bye.
00:10:46.980 Bye-bye.
00:10:47.980 Bye-bye.