What To Do When Your Employee Threatens To Quit Over Salary

There might be ways to keep them happy without breaking the bank.

Feliks Eyser
5 min readJan 15, 2020
Illustrations handmade with ❤ by Ariane Frida Sofie

Welcome to the beginning of the year. It’s a beautiful time when the snow is falling, new year’s resolutions are not yet broken dreams, and employees suddenly demand a steep salary increase in your chronically underfinanced start-up. You check your bank account with the usual anxiety and realize that this whole salary-increasing-thing would be a wonderful activity…in the very distant future. But you need that dear employee, and they surely know that. Neither messing with your staff’s motivation nor breaking the bank sound like the confetti party you hoped to start the new sun rotation with. So, happy new year — sometimes being a start-up CEO sucks.

I recently coached a founder who stumbled into such a catch-22 for the first time. Having been through the fireworks many times myself, here are some principles that I would recommend to cure this new years’ hangover of a situation.

Don’t respond right away

Salary discussions might be highly emotional for the employee and you as a manager. Resist the urge to respond right away and listen carefully to the employee’s position. Never say ‘yes,’ ‘no,’ or anything that might be understood as a decision…

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Feliks Eyser
Feliks Eyser

Written by Feliks Eyser

Tech founder & investor from 🇩🇪. Sharing experiences for first-time founders💡🛠🚀