How to Communicate a Raise to an Employee

Some bosses consider communicating pay increases to be the best part of the job because the increase employee motivation and productivity. Telling employees about pay raises can be tricky, however, when only one or a few employees are selected for increased compensation. When you make a decision to increase an employee's salary, you must communicate the raise to the employee shortly thereafter to prevent incorrect information from spreading through the workplace rumor mill.

  1. 1.

    Schedule an appointment with the employee through your company's appointment scheduling software. Block out enough time to explain the raise to the employee and for the employee to ask questions. Meet in a private conference room or in your office with the door closed to protect the employee's privacy.

  2. 2.

    Tell the employee that she got a raise. Give the employee details about why she got the raise, which could result from her most recent performance appraisal, tenure on the on the job or a promotion.

  3. 3.

    Show the employee figures that represent how the raise affects his compensation. A 2008 survey conducted by compensation specialist WorldatWork indicated that the number of employees who don't understand how pay increases work could be as high as 40 percent. Go over the employee's current pay. Then state the new salary and explain the impact it will have on benefits.