A report opened to me that they are having money problems and wants a raise. We are remote and they moved to a high CoL city. We gave an increase to help with retention 6mths ago. In my response, I helped mentor with best practices on how to ask for a raise professionally since I need to make a case to my Head on finances. But their performance has been avg and not seemingly worthy of another large raise within a short period of time. But how do I respond when they talk about personal finances?

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Personal Finances are Personal.

If anything, empathize and affirm your direct’s emotional experience.

Then associate any further raises with increasing output and performance.

Cite annual goals and metrics.

Level with your direct where you see their performance, and agree to follow up in 1:1’s regarding performance improvements.

Meanwhile, make sure your team is probably leveled within salary bands. See if there’s a case that can be made.

Revisit when it makes sense.

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