Part-time employee making $25 an hour asks manager for a 300% raise, claims the business couldn't run without her: 'The business has been around for 50 years. She’s been here for 3'

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  • Portrait of young businesswoman sitting at the table with laptop and smiling at camera while working at the office
  • Direct report just asked for 300% raise

    I have a direct report that has been working for me for 3 years. She's good at her job, takes it very seriously.
  • She's an office admin, she helps things run smoothly. The business is a seasonal service industry business, so she works about 30 hrs per week in the summer, and 15 hours per week in the winter. She is paid hourly, $25/hr (HCOL area)
  • Her basis for requesting the pay increase is that "the business could not run without her" and that she made more annually at her last job (note that her last job was a full time job, so she was working about 3x the amount of hours that she does here, so of course she made more!). She also claims she is starting to do accounting type work, so wants to get paid as such.
  • My perspective is that she isn't doing accounting work, and she gets paid a very good hourly wage. She's doing admin and bookkeeping, which is very different from accounting. We still hire an outside accounting firm for our accounting needs. Also, she has a music degree, so she really doesn't have the skills or experience to be an accountant, let alone be paid like one.
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  • Also, the business has been around for 50 years. She's been here for 3. so her statement that "the business would fall apart without her" is just false, point blank.
  • So I countered with a 5% hourly raise, because I do want to keep her. And also I offered that the business has an employee education fund, so we could pay for her to get an accounting degree at the local college, and then that would open her up to a higher pay scale in the future.
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  • Did I handle this OK? She didn't take it well, said if I paid her more, then she could afford to pay for her own degree in a field of her choosing, rather than one | tell her to get (recall, she's the one who used her "accounting" responsibilities as a justification. for the requested raise)
  • Obviously the request is crazy for that amount of a pay increase, but she is a good employee and I'd rather keep her around than find a replacement, even though it's an easily replaceable role. So I wanted to give her a bit and then open up the potential for her to grow her career into that salary that she wants. Obviously it would be a years long process, but things take time.
  • I know cost of living is brutal right now, so I feel bad, but also idk what people expect if they are only averaging 15-20 hrs per week year round, they aren't going to make six figures. Any insight would be appreciated.
  • ILINTX I'm wondering if the reason she is asking for such and increase is because she is doing the bookkeeping? She sees the money coming in and compares that to what she is being paid and wants to make up the difference.
  • Cautious_Midnight_67 OP Probably. Our business serves rich people, primarily. So we have a lot of money flowing in (but also a lot of money flowing out).
  • Aos77s Be real here, she can see whats coming in and out so she can get a good idea of the amount of profit being generated. Ofc you can replace her anytime, crazy she declined the paid accounting degree and 5% offer. That's substantial if you're actually going to pay for the entirety of the degree
  • Cautious_Midnight_67 OP Yeah, I get the feeling that she doesn't really want to do accounting, she was just trying to use it for leverage to get lots of $. I think at this point I'm going to lose her and just need to pan for a replacement
  • ilanallama85 Look, she sounds crazy, so I wouldn't stress about it, but to be clear, if you actually want to incentivize someone to stay, 5 percent won't cut it. That's barely more than inflation.
  • Cautious_Midnight_67 OP I agree. But 5% on an easily replaceable job is what I can justify. The education assistance to upskill her to a higher value role was supposed to be actual incentive. But it seems she wants the money without the responsibility and skills
  • ps2cho Easy - ask she provides some wage comparables for you to take to the owner. Similar job title, degree and requirements. She's delusional but you can move forward professionally and this will essential kill that motion.
  • unholycurses Oh this is the perfect response. This actually happened to me early in my career. I wanted a large raise and was asked to provide comparables. I did a lot of research, found comparables, presented it to the CEO and got a substantial raise. It benefited both the company and I to have that information and level set on a reasonable salary.
  • embalees I live in a HCOL area and work as an admin. $25 an hour is criminal and you're going to "get what you pay for" when she bails because why take your job seriously when the pay is so unserious? Literally the Panda Express across from where I work has positions open for more than this.
  • Asking for $75/hr is WILD and I don't know what she was hoping to accomplish with that, but your counter offer was essentially crumpling up a dollar bill and throwing it at her. Pay her at least $35/an hour but it really should be $40, if she's as good as you say. It costs less to retain good employees than it does to constantly retrain a revolving door of bad ones.
  • SpiralStability I'm with you poster. Don't think 3x is justified but $25/hr seems quite low. That's less than our office admin made in a HCOL area 15 years ago! And she got benefits too! And that was below market back then! OP has your office admins rate increased at all I the last 3 years? Has their responsibilities increased?
  • TheDeHymenizer Also, the business has been around for 50 years. She's been here for 3. so her statement that “the business would fall apart without her” is just false, point blank. I don't doubt that the business would survive without her but "its 50 years old" isn't a good argument. It could be 100 years old but if one guy is doing the job of 6 people it could still collapse after they leave.
  • lysergic_tryptamino She is very young I am guessing. We all learn quickly that current employer is never going to give you a good raise.

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