Threatened into giving a pay rise?
Do you have a member of staff that has told you that unless they have a payrise they will leave? Has this happened and did you give in?
Unless you are underpaying your staff do not give in without reason.
I feel that all pay rises should be performance related and that they do not have to be an anual event.
You should create a new system immediately and inform the entire team that pay rises from now on are performance related and you are scrapping the annual pay increase.
If a team member wants a payrise I would arrange a meeting and get them to explain to you why their performance related pay should be increased.
The team member in question might contribute signifiantly to the business and you may not see what they do day to day. This is a great oppurtunity to listen and learn about their role in detail (and if they deserve a rise you will give them one).
If a team member states that they cannot give reasons for a pay rise “they just need one” (and you are paying them fairly) ask them to come back to you to set a date for a meeting when they have a clear idea of why their performance should be rewarded.
Managers and owners are always being threatened into giving pay rises on the basis that without one the team member in question will leave. If you pay them well, and treat them well, then do not give in. Stay in control of your business.
And if they leave?
They can always be replaced! (harsh but true).