It’s a cycle. Employers think they are paying too much; employees believe they are not being paid enough. There are pay grades that serve as a guide to how much a person should be earning depending on their position and experience, but other factors affect the final salary offered to an employee.
If more than one employee has been asking for a pay raise, perhaps something has to be done. Consider these when discussing with your HR:
An employee could have been in the company for a while, but if they are coming from a position that is not integral to their current job, their experience might not mean much. You might also want to get employment advice from a business attorney like Miller & Steiert, P.C., to make sure you are not in hot waters when it comes to claims of unfair compensation.
You’re willing to give a new hire a favorable salary if you know that they will help improve your company. However, the people who are already working for you also deserve appreciation. Their loyalty should be rewarded with fair compensation, one that evens them out with new hires. The last thing you want is for your loyal employees to think that they mean less to you than that stranger who’s just reporting for their first day.
If you’re not paying them enough, they might consider new opportunities elsewhere in Denver. If they are an essential part of your company, their absence will cripple you at least until you find a replacement. You’ll have to train that replacement before they can be fully integrated into the company. Consider the opportunity cost if you are letting an employee go without considering their request for a higher salary.
There should be a balance between compensating employees fairly and giving in to their every whim. Know your employees’ worth and show your appreciation.