Letting a member of staff go...

braithers_2

I have an employee who has been working for me for the last 3 months, but due to wanting a bit of an higher wage which i can't afford to give her, i'm feeling i need to let her go, but theres one big problem...

this person is someone that is now a friend and without her my business wouldn't be were it is today.

I don't want to fall out with this person either.

Please help

motorguy

Just to clarify, i take it they have been offered another job?

Or are they asking for a wage increase, which you feel you cant meet? If so why do you have to 'let her go'? Surely its a matter of, sorry we cant afford to give you more money, and it would be up to her to resign?

braithers_2

Yeah its a matter of her asking for one, of course she would have to resign if she was to leave but has anyone got any type of of wnding, which can make both parties happy?

elona

Could she work fewer hours for the same money?

Maybe leave earlier a few days or arrive later so she still does most of the work she has been so good at.

Savvy_Sue

Would a bonus payment work for either party?

If she's a friend, and you recognise that she's made a huge contribution to your business, would a profit share make sense?

Hopefully at least you can talk to her about this, and she'll believe you if you say that a straightforward wage rise is not an option. But before you say that, work out what it will cost to recruit someone, even someone not as good as her. Check you are paying 'the going rate'. Because you may find you can't afford NOT to give her that payrise!

BTW, don't just give a payrise to keep her with you after she's had a better offer. I think there was some research to show that most people still leave soon afterwards - it's rarely JUST about the money.