Handling Difficult Employee Conversations: Part II

Scenario 2: Your Company cannot provide pay raises this year.

If you typically give annual pay increases but are unable to, consider these tips to help manage employee morale:

• Set expectations. While employees may be accustomed to annual pay raises or bonuses, explain that they are not guaranteed each year.  Avoid language that implies that employees automatically receive a bonus or increase and communicate the factors the company considers before awarding pay increases.
• Use a multi-pronged approach. When a pay freeze is necessary, be straightforward with employees about the difficult situation the company is facing. Consider announcing the freeze as early as possible in a company-wide meeting or other communication and then follow up in one-on-one meetings with each affected employee.
• Explain that you considered other options. Acknowledge that the decision was difficult for the company and that you considered all available options before reaching your conclusion. Where appropriate, consider asking employees for ideas to help improve business processes and reduce costs.
• Look for other ways to recognize employees. If you're unable to give merit increases, you can still recognize employee performance in other ways, such as an "Employee of the Month" program, an announcement in company communications, a note from a supervisor, or special privileges like parking in the CEO's spot.

Scenario 3: Your employee did not get the promotion he or she hoped for.

Failing to get a promotion can deflate an employee’s morale, so consider these steps aimed at keeping the employee engaged and motivated going forward:

• Recognize accomplishments. Recognize the employee's contributions to your company thus far, thank them for their service, and let them know that their career development is important to the company.
• Create a career development plan. Let the employee know the skills, knowledge, and experience needed for the employee to advance and create a development plan to help the employee get there. For example, perhaps the employee needs a certain certification to be eligible for the promotion, or experience managing a project. Avoid implying that they will get the promotion next time simply by completing the steps you outline.
• Follow up and reinforce. Demonstrate your commitment to career development by checking in with employees on a regular basis and offering guidance and support. Consider asking supervisors to discuss career development in their regular one-on-one meetings with employees.

·         Look for other ways to recognize employees. If you're unable to promote a particular employee, you may be able to recognize their value to the organization in other ways. Employers are cautioned that the recognition must be meaningful, or it may not be well-received