My team works hard, our company is thriving, and yet, our budget for raises just got cut again. I’ve always been upfront about these things, but I’m struggling with how to deliver this news in a way that doesn’t crush morale. How would you approach it?
https://www.axios.com/2025/01/28/job-market-raises-inflation
I’ve had to deliver this kind of news, it's never easy. I take an honest approach, but then I also make sure my team knows I’m still in their corner. If raises aren’t possible now, what is? Career development? Bonuses later? More time off? People need to know they still matter.
Be honest! Tell them why the budget has been cut. If it's for reasons like stock market performance, sales, company wide missed targets then tell them. If, like me, you are in the non profit world and it's an issue of curtailed or reduced grants/donors: tell them. Some of the great employees I manage actually gave me great ideas on effective fundraisers we've implemented which led to them recently being able to get a raise :)