Increasing someone's pay because of benefit cuts

[buckingfrolicks]

My company employs a small number of people, all paid well above the living wage and in line with SE England national averages for the jobs.

One person has 4 children all at school and a spouse who doesn't work.

This person has asked for a pay rise because their family has had a significant (several hundreds) cut in benefits as per the Government changes.

This person has asked for a pay increase as a direct result.

Would it be unreasonable to say no? The employee is a good worker and not one we would want to lose. However, no one is irreplaceable!
If the job had, say, an increase of 6K a year (what the person is asking for), then we would be able to recruit someone on that salary with more experience, qualifications and skill, than the current post holder.

As an employer we are generally left of centre and in favour of supporting people, including our employers - we aim to be a good employer and keep good staff.

So WIBU to say no to a pay increase?

Their benefits have been cut by (allegedly) £700 a month.

YANBU

Wouldn't their benefits then be cut even more?

I don't think YABU.

The benefit cap isn't applicable to in work claimants...

Tricky, are you going to give everyone a pay rise? If I were a colleague at the same level I wouldn't be too impressed that someone else got paid more for the same job just because they have 4 kids

If an employee asked for more money because they don't qualify for any benefits would you pay it?

Well I think anyone should be able to ask for their pay to be reassessed with a view to bringing it more in line with what they and you perceive to be their competency or contribution to the company.

But a raise purely to supplement lost benefits, no. No way.

I'm curious as to what sort of benefits they have.

I'd have assumed if they are in receipt of benefits it is because the person bring in a low income.

Dh and I have a joint salary of 35k and we get around 400pcm but if we didn't have a childcare bill of 1k then we wouldn't get anything apart from child benefit.

'The benefit cap isn't applicable to in work claimants...hmm'

This. Think they're having you on and it's really unfair on everyone else.

If the suggested pay rise is 6k then surely the standard salary is quite decent? He's got some cheek....!

Strange thread!

Interesting. You would have to be prepared to pay everyone at this person's level the extra then as well. You have to look at it unemotionally I suppose. Is this person worth an extra 6k? Can the company afford 6k pay rises to all?

Must be a worry for this person though.

£6k is a hell of a rise. I'm with nap, if they're underpaid compared to what they should be commanding then that's one thing but it should have nothing to do with their children

You need to pay the rate for the role not the person doing it.

Hadn't thought about the knock on effect on their benefits - good point BumBumtaloo.

No we would not give everyone a pay rise - and this is one thing that makes it unreasonable for this person to ask as the company could not afford all round pay rises at this point in the year, Nancy75.

But I worry that we're not paying a real living income to someone, if they can't live on the salary (which is around £25K plus bonus); then I think, argh but they chose 4 kids! and the spouse could get a job! and then I worry I'm turning into a hard bitten 'not my problem, buddy, that's life' kind of person which I don't want to be.

Did the person try to sell their request to you in any way?

Ie, if you give them a £6k a year pay rise, they'll take on more responsibility, seek to upskill, etc?

They are paid a fair rate for their post.

Very, no they didn't - just 'poor me, my benefits are cut, I'm broke, can I have a pay rise' type email

Winniethepooer why is it a strange thread? genuine question

So they earn 25k which is deemed an appropriate wage for the role. They can either take a promotion to get a higher wage / the other parent take on evening or weekend work / look for a new job.

Has their youngest child reached 18? Sounds like they may have lost their tax credit entitlement?

Your decision needs to be made realistically and according to the employee's current skill set and the direct benefit to your company. If you can't afford to lose her, the skill set of external candidates become irrelevant as they wouldn't be able to add the same value as her. In that case you should increase her pay.

Alternatively have you explored flexible working? I work in investment banking and staff are willing to make do with nil or nominal pay increases if you let them work from home twice or week, or compress their hours.

So you are going to consider a 24% pay rise?

When did you last issue payrises, OP?

Can you offer a small percentage if you feel obliged to?

Did they give you any other reasons at all such as performance, what the going rate is or what they could earn with a rival?

For the record, I resigned after I didn't get a payrise for a full 8 years, boss called my bluff by saying he'd get someone just as good as me for less. He did....but they literally walked out on day 10 of the employment & he hasn't held onto anyone else since. So, I disagree, some people aren't replaceable.

I sort of want toa dvise you to work out which is the lesser evil if she decides to walk but you really shouldn't have been put in that position by your employee.

Does she see you as a friend more than employerhence what I seem to take as a 'casual' excuse/reason.

What changes have affected them?
The two child cap hasn't come in yet and doesn't affect children already born.