Verbal promise of raise...

Five months ago our bank expanded the operation of an existing department and chose an employee to transfer into that department when space became available. Finding new space took longer than anticipated and during that time the manager of that department was dismissed for violating company policy. Eventually the transfer took place and the transferred employee, after receiving his first pay check in the new department, asked the new manager, "Where's my raise"? To summarize the problem: The employee claims that the previous manager promised him a pay increase with the transfer. There was no documentation to support that and the current manager does not feel that a pay increase is warranted. I cannot verify this committment with the previous manager because his dismissal was not pleasant and I wouldn't even know where to contact him. Bank administration agrees with the new manager that a pay increase is not appropriate with this transfer. We obviously are about to have a disgruntled employee. Our position will be that we had no documentation from the previous manager and we don't feel that a pay increase is warranted at this time. He will have the option to continue at his current salary or leave. We have already filled his previous position. Am I overlooking anything in this approach? He is a non-exempt white male, age 28 with four years service with our organization.

Comments

  • 5 Comments sorted by Votes Date Added
  • Suggestion: tell the employee in writing that he will get a salary review after three months in the new location; AND that because the ex-manager's promise was not in writing the company cannot honor it. Hope your policy requires all pay changes to be in writing !

    Been there. This same scenario actually happened to me way back when. I did not get the promised
    verbal raise upon transfer, but just took my lumps, worked hard and earned promotions at the new location.

    Chari

  • If you write that a promise was made, then you will have proved the EE's case. I would not acknowledge in any way, shape or form that ANY promise was EVER made unless I knew that to be factual. I don't even think that I would write him a letter talking about a salary review unless it was standard operating procedure.

  • I would agree. It sounds like a lateral transfer, so no raise would be normally given since the new positon does not carry any higher level of duties.

    Elizabeth
  • I agree with others, do not put anything in writing and do not honor an unsubstantiated "promise" of a raise. The scenario will make this employee wiser the next time and make sure that he/she gets in writing!
  • You are not in a great position. Being unable to prove the promise of a raise, you must act with the best information available. In this case, you have already made the decision regarding this EE; a raise is not justified. Simply tell the EE about your policy requiring documentation and approval for all raises and that the documentation did not take place therefore, you cannot give one. I would just keep it that simple. Further, I would have the current manager explain what it will take for this EE to get a raise, maybe it is time to do an out of cycle review. This EE must earn the raise just like everyone else.
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