The Pay Raise Ultimatum: A Consultant’s Chat on Handling Employees Who Threaten to Leave Over Pay

Client: Hey, I need your advice on something sticky. One of my employees just came to me and said they’ll leave if they don’t get a pay raise. The problem is, the raise they’re asking for is totally out of alignment with our internal pay equity. What should I do?

Consultant: The “raise or I walk” threat. It’s like being asked to pick between your favorite child and your prized pet—you don’t want to lose either, and you also can’t just give in to demands that upset the balance at home (or in this case, the office). We can help you navigate this with grace and maybe even a little humor.

Client: Great, because I’m really not sure how to handle this. I want to keep them, but I also can’t just blow up our pay structure to make one person happy.

Consultant: Exactly. The first thing to remember is that threats like this can be a sign of something deeper. Maybe this employee feels undervalued, or maybe they’ve heard through the grapevine that someone else got a raise and now they want one too. It’s important to get to the bottom of what’s really going on before making any decisions.

Start by having a calm, open conversation with them. You might say, “I appreciate you coming to me with your concerns, and I’d like to understand more about what’s driving this request. Let’s talk about what’s on your mind.” This gives them a chance to air their grievances without you immediately feeling like you’re cornered into making a decision.

Client: Okay, but what if they just keep pushing for the raise? They’re pretty adamant about it.

Consultant: If they’re still stuck on the raise, it’s time to bring out the facts—and I mean the hard numbers. Explain your company’s approach to pay equity and how you determine salaries. You could say, “We’re committed to maintaining a fair and equitable pay structure across the company. Your request is outside of the range we’ve established to ensure everyone is paid fairly for their role and experience.”

This is where you need to be transparent about how raises are determined. If they’re performing at a high level, let them know you recognize that and explain how that could lead to a raise within the established structure—just not the one they’re demanding. It’s about showing them that the process is consistent for everyone.

Client: But what if they threaten to leave again? How do I keep the conversation productive?

Consultant: Here’s where you turn the conversation around and ask some questions of your own. You might say, “I hear that this raise is important to you, and I want to understand more about what’s driving this decision. What are your long-term goals here, and how can we help you achieve them within our current structure?”

This does two things: First, it shifts the focus from the immediate demand to their future at the company, which could reveal underlying issues like career development or feeling undervalued. Second, it gives you a chance to explore other ways to satisfy their needs—like offering additional responsibilities, career growth opportunities, or non-monetary benefits that might align more closely with their goals.

Client: Okay, that’s helpful. But what if they’re still set on the raise and nothing else seems to matter? Do I just let them go?

Consultant: If it comes down to that, you have to weigh the pros and cons. Sometimes, an employee might be bluffing, thinking the threat of leaving will force your hand. If you’ve laid out the reasons why you can’t grant the raise and offered alternatives, and they’re still not budging, you need to consider what’s best for the business.

You might say, “I understand your position, and we need to maintain consistency in our pay structure. If this is a deal-breaker for you, I respect your decision, and I will wish you well if you resign.”

It’s never easy. Sometimes letting someone go—if they’re unwilling to work within the established system—is the best course of action. It’s about protecting the integrity of your pay equity and the morale of your team. If word gets out that one person got a huge raise by threatening to leave, you’ll have a line outside your door in no time!

Client: That’s true. But what if I really want to keep this person? They’re valuable and losing them would hurt the team.

Consultant: If they’re truly valuable and you want to explore ways to keep them, which result in a raise, you will likely be giving raises elsewhere also. Pay Equity isn’t a choice, it’s risk mitigation against illegal discrimination. Their value would need to offset all of the costs, assessment of changes to policy systems, training, processes, and the actual raise as well as the raises to others.

Client: What if I just can’t meet their demands, and they do leave? How do I manage the fallout?

Consultant: First, don’t panic. Employees leave for various reasons, and while it’s unfortunate, it’s also an opportunity to bring in fresh talent. If they decide to go, focus on a smooth transition. You might say, “I’m sorry to see you go, and I respect your decision. Let’s work together to ensure a smooth handover so the team can continue to thrive.”

Then, take a step back and assess what this situation has taught you. Were there signs earlier that this employee felt undervalued? How can you improve pay communication or career development to prevent similar situations? Use this as a learning experience to strengthen your team and processes.

Client: I guess that’s the best I can do. Any final words of wisdom?

Consultant: Just remember: it’s all about balance. While you want to retain your top talent, you can’t sacrifice the integrity of your pay structure or risk a discrimination lawsuit. Be empathetic and be clear. If you stick to your principles while showing you’re willing to work with employees on other solutions, you’ll build a strong, loyal team—and minimize those awkward “raise or I’m out” ultimatums in the future.

We are here to help anytime. Thanks for the conversation.

Oregon Business 100 Best Non-Profits to Work For in Oregon

Oregon Business Magazine has published its 2024 list of 100 Best Non-Profits to Work for in Oregon and HR Answers is thrilled to see several of our clients on this year’s list. Congratulations to all the non-profit organizations who made the list!

LARGE ORGANIZATIONS

#1 Mental Health & Addiction Association of Oregon

#8 Capital Manor

#11 Portland State University Foundation

#21 Northern Wasco County PUD

#34 Easterseals Oregon

MEDIUM ORGANIZATIONS

#16 South Coast Business Employment Corp

#33 Cat Adoption Team

DOL Exemption Changes Struck Down by a Federal Judge

The Department of Labor’s new and planned rules intended to raise the salary threshold for overtime exemption have been stopped by a federal judge.

What that means:

  1. Current Threshold Remains Around $35K: The increase to $44K (July 2024) and the planned increase to $59K (January 2025) are canceled for now. Automatic raises every three years are also blocked.
  2. Reason for the Halt: The court ruled that the Department of Labor (DOL) overstepped its authority by focusing too much on salary instead of job duties when deciding who is exempt from overtime.
  3. What’s Next: The DOL may appeal, but the new presidential administration (Trump, starting January 2025) is unlikely to fight for the rule.
  4. For Employers:
    • If you’ve already raised salaries or reclassified jobs, consider the impact on morale before rolling back.
    • If you haven’t made changes, hold off until there is more clarity.
    • Consider reviewing roles and consulting with us prior to making any additional changes.

This decision requires each employer to continue thoughtful planning to manage employee expectations and legal obligations.

The Oregonian Top Workplaces 2024

The Oregonian has published its 2024 list of Top Workplaces and HR Answers is thrilled to see several of our clients on this year’s list. Congratulations to all the organizations who made the list!

LARGE EMPLOYERS (500 or more employees)

MIDSIZE ORGANIZATIONS (100-499 employees)

SMALL EMPLOYERS (35-99 employees)

The Delicate Dance: Handling Employees with Serious Illnesses Beyond Protected and Paid Leaves

Client: Hey, I’ve got a tough situation and need some guidance. One of our employees has a serious illness. They’ve used up all their protected leave and paid time off, but they want to keep working. The problem is, they’re not meeting expectations. What should I do?

Consultant: That’s a tricky one. It’s like trying to juggle flaming torches while riding a unicycle—there’s a lot going on, and it’s easy to get burned. First off, I’m sorry you’re in this situation. Balancing compassion with business needs is one of the hardest parts of management. Don’t worry, we can navigate this together.

Client: Thanks, I appreciate it. I want to be supportive, but at the same time, I have to think about the team and the work that’s not getting done. Where do I even start?

Consultant: Let’s start by acknowledging the human element here. It’s important to approach this with empathy. The employee is dealing with something really difficult, and the fact that they want to keep working shows they’re committed. That doesn’t mean you can ignore the impact on the business. You’ve got to find a balance between supporting them and keeping things running smoothly.

The first step is to have an honest, compassionate conversation with the employee. You might say something like, “I can see how much you want to keep contributing, and I admire your dedication. We need to talk about how things are going and what we can do to support you while also making sure the work gets done.”

Client: Okay, but what if they’re really struggling and just can’t meet the expectations? How do I handle that?

Consultant: This is where things get delicate. You need to assess whether there are reasonable accommodations that could help them meet expectations. Accommodations might include things like adjusting their workload, providing flexible hours, or allowing them to work from home if that’s possible. The key here is “reasonable”—you want to help them, and you need to make sure the accommodation doesn’t put undue strain on the rest of the team. This step is key in meeting the organization obligations related to the American’s with Disabilities Act (ADA.)

You could say, “Let’s explore what adjustments we can make to help you succeed. We want to support you, and we need to be realistic about what’s possible given the current situation.” This keeps the conversation supportive and grounded in the reality of the work that needs to be done.

Client: But what if we’ve already tried accommodations and they’re still not meeting expectations? At what point do I need to make a tougher decision?

Consultant: If you’ve tried to make accommodations and the employee still isn’t able to meet the job’s essential functions, it might be time to consider a more difficult conversation. This doesn’t mean you’re giving up on them, rather that you need to look at the bigger picture. You could say something like, “We’ve tried several adjustments, and we see this remains challenging and you are not meeting the job’s requirements. Let’s talk about what other options might be available.”

Options might include a temporary unpaid leave of absence, a reduced role, or even discussing whether there’s another position within the company that might be a better fit given their current situation (these are also parts of the ADA). This is where your empathy really needs to shine—you want them to know you care about their well-being, even if the current arrangement isn’t working.

Client: What if they insist on staying in their current role, even though they can’t handle it? I don’t want to seem like I’m pushing them out, but the team is starting to feel the strain.

Consultant: This is a tough love moment. You need to be clear and honest while still being kind. It’s perfectly okay to say, “I understand that you want to stay in your role, and we have to consider the impact on the entire team. The current situation isn’t sustainable, and we need to find a solution that works for everyone.”

If they’re adamant about staying, you might need to set some clear, measurable expectations and timelines. For example, “Let’s agree on some specific goals for the next few weeks. We’ll reassess at that point to see if things are improving.” This gives them a fair chance to improve, and also sets the stage for a more serious conversation if things don’t get better.

Client: And what if, after all of that, they’re still not meeting expectations? Do I have to consider termination?
Consultant: If it comes to that, it’s important to approach it with as much sensitivity as possible. Termination should always be a last resort, especially in a situation like this. If the employee isn’t able to perform the essential functions of their job despite accommodations and you’ve exhausted other options, it may be the only viable path forward.

When having that conversation, frame it in terms of the needs of the business while acknowledging the effort the employee has put in. You could say something like, “I know how hard you’ve worked to try and make this work, and I appreciate your dedication. Unfortunately, we’ve reached a point where the current situation isn’t working for the business, and we need to make a difficult decision.”

Make sure you’re offering support, whether that’s in the form of severance, help with applying for disability benefits, or even offering to write a strong reference if they’re capable of working in a different role elsewhere. It’s about balancing compassion with the reality of the business needs.

Client: That makes sense, but it’s still really hard. How do I make sure I’m doing this the right way legally and ethically?

Consultant: Great question, and it’s crucial to get this right. Make sure you’ve touched base with an employment attorney to review your process. You want to be sure you’re complying with all relevant laws—like the Americans with Disabilities Act (ADA) and any applicable state laws—and that you’re documenting everything thoroughly. We can certainly outline the steps we are recommending for you. That might minimize the cost of the attorney.

Document every conversation, every accommodation offered, and every performance issue. This isn’t just to cover yourself legally—it’s also a way to ensure you’re being transparent throughout the process. You might say, “We’ve kept careful records of our discussions and the steps we’ve taken to support you, and we want to make sure everything is clear.”

Client: Thanks, this helps. It’s just such a difficult balance to strike between being compassionate and keeping the business running.

Consultant: It is, and there’s no perfect formula. Approaching this with empathy, clear communication, and a focus on finding workable solutions, you’re doing the best you can in a tough situation. Remember, your goal is to support the employee while also ensuring the business can continue to function effectively. Sometimes that means making hard decisions. If you handle it with care, you can navigate this without losing your humanity—or your sanity.

Client: I appreciate your help. Any final advice?

Consultant: Just this: remember that you’re dealing with a person who’s going through a tough time, and you’re responsible for the well-being of your entire team and the business. Approach every conversation with kindness, and don’t shy away from the tough decisions if they’re necessary. It’s a balancing act. With the right approach, you can find a solution that respects everyone involved.

We are here to help anytime. Thanks for the conversation.

Embracing the Spirit of Kindness and Humor in the Workplace: A Tribute to International Day of Kindness

Every year on November 13th, the world comes together to celebrate the International Day of Kindness. This day is more than just a reminder to be kind to those around us; it serves as a beacon, encouraging us to integrate kindness into our daily lives, including the workplace. In a setting often dominated by deadlines, targets, and the pressures of performance, infusing kindness and a touch of humor can transform the environment, boosting morale, enhancing teamwork, and fostering a culture where everyone feels valued.

In many organizations, the focus tends to be on efficiency, productivity, and the bottom line. While these aspects are undeniably important, the human element often gets overshadowed. Kindness in the workplace, however, is not just a ‘nice-to-have’ but a crucial component of a healthy organizational culture. When employees feel appreciated and respected, they are more likely to be engaged, motivated, and committed to their work.

Acts of kindness, no matter how small, can have a ripple effect. A simple gesture like holding the door open, offering to help a colleague with a challenging task, or even sharing a kind word can create a positive atmosphere. This atmosphere, in turn, contributes to better collaboration, increased creativity, and higher levels of job satisfaction.

The Power of Random Acts of Kindness

Random acts of kindness are unexpected gestures that can uplift spirits and bring a sense of joy to the recipient. In the workplace, these acts can range from surprising a colleague with their favorite coffee to leaving a handwritten note of appreciation on someone’s desk. These small, spontaneous actions can make a significant impact, often brightening someone’s day in ways that were unanticipated.

Consider the story of Sarah, a project manager at a mid-sized tech company. Sarah was having a particularly tough week, juggling multiple deadlines and feeling overwhelmed. One morning, she arrived at her desk to find a sticky note with the words, “You’re doing great! Keep it up!” and a small bar of her favorite chocolate. That simple, anonymous gesture gave her the boost she needed to tackle the rest of the week with renewed energy. The kindness she experienced didn’t just lift her spirits; it also inspired her to pass it on by doing something kind for a colleague.

These acts don’t have to be grand or costly. The key is in their thoughtfulness and the genuine intention behind them. When employees feel cared for, they are more likely to care for others, creating a positive feedback loop that benefits the entire organization.

Incorporating Humor into Workplace Culture

While kindness nurtures a supportive and respectful environment, humor adds a layer of lightness and joy. Incorporating humor into the workplace can diffuse tension, foster camaraderie, and make the workday more enjoyable. It’s important, however, to use humor appropriately and inclusively, ensuring it never comes at the expense of someone’s feelings or dignity.

Humor can take many forms in the workplace. It might be as simple as sharing a funny meme in a team chat, organizing a light-hearted contest, or starting a meeting with a humorous anecdote. These moments of levity can help break down barriers, making it easier for employees to connect with one another on a human level.

For instance, in a particularly high-stress period, a team lead at a marketing firm decided to introduce “Funny Friday” where each team member would share a joke or a funny story to kick off their weekly meeting. This simple initiative not only lightened the mood but also strengthened the team’s bond, making it easier for them to collaborate and support each other through the stressful times.

The Intersection of Kindness and Humor

Kindness and humor are not mutually exclusive; in fact, they complement each other beautifully. A workplace that encourages both is one where employees feel comfortable, appreciated, and connected.

Imagine a scenario where a team is facing a particularly challenging project. Tensions are high, and stress levels are through the roof. A well-timed, kind-spirited joke or a humorous gesture can lighten the atmosphere, reminding everyone that while the work is important, it’s okay to take a moment to breathe and share a laugh. This not only helps to reduce stress but also encourages a sense of unity, making the team more resilient and effective.

Moreover, humor can be a way to express kindness. For example, sending a funny, personalized e-card to a colleague who’s had a rough day or playfully teasing someone (in a way that’s lighthearted and respectful) can show that you care. It acknowledges their feelings while also offering a moment of joy.

While the benefits of kindness and humor in the workplace are often intangible, they can be measured in various ways. Employee satisfaction surveys, feedback sessions, and even casual conversations can provide insight into how these values are impacting the workplace culture.

The International Day of Kindness serves as a powerful reminder that kindness is not just an occasional act but a way of life, even in the workplace. As we celebrate this day on November 13th, let’s commit to making kindness and humor integral parts of our daily interactions at work. Whether it’s through random acts of kindness, a well-timed joke, or simply taking the time to appreciate those around us, these small gestures can lead to a more positive, productive, and fulfilling work environment for everyone.

Wrapping Up the Year with Joy and Celebration: A Message from Our Team to Yours

As we approach the close of another year, it’s a time to reflect, celebrate, and share the joy of our accomplishments—no matter how big or small they may be. In the hustle and bustle of our daily routines, it can be easy to overlook the milestones we’ve achieved, but each success, no matter its size, is worth celebrating.

This year, our team has witnessed incredible growth, not just in our achievements but in the bonds we’ve formed and the resilience we’ve shown. We’ve navigated challenges, celebrated wins, and most importantly, supported one another through it all. Every step forward, whether a major breakthrough or a simple task completed with care and dedication, has contributed to the strength and success of our organization.

As we wrap up the year, we encourage you to take a moment to find joy in your accomplishments. Reflect on the hard work, the late nights, the collaborative efforts, and the moments of inspiration that brought you here. Celebrate those moments. Share your success with others, not just as a testament to what you’ve done, but as a source of inspiration for what we can achieve together.

Success isn’t measured by the size of the accomplishment but by the impact it has on you, your team, and those around you. Whether you’ve reached a major goal, learned something new, or simply maintained your commitment to excellence, you have every reason to be proud. Your dedication and perseverance are what drive our collective success, and for that, we celebrate you.

As we look forward to the new year, let’s carry this spirit of celebration and joy with us. Let’s continue to support each other, share our successes, and embrace the opportunities that lie ahead. Here’s to a year of accomplishments, big and small, and to the joy of knowing that every effort counts.

From our team to yours, thank you for making this year truly special. We look forward to celebrating even more successes with you in the coming year. Let’s continue to find the joy in every step of the journey, and remember—every success, no matter the size, is worth celebrating.

Happy holidays, and here’s to another year of growth, joy, and shared success!