As a coach to MSPs, I get this question all the time. Many managers chalk it up to generational differences—Boomers vs. Millennials or Gen Z—but in reality, it’s often something deeper. Sure, there’s some truth to generational stereotypes, but here’s the real takeaway: when an employee asks for a raise, they’re often signaling unhappiness in their role.
Years ago, a high-level executive at Chase Manhattan Bank taught me an important lesson about employee satisfaction: Happy employees fuel successful businesses. Culture, as the saying goes, eats strategy for breakfast. A strong, positive culture leads to higher productivity, better collaboration, and long-term success. On the flip side, unhappy employees can derail even the best-laid plans.
So, how do you address employee dissatisfaction? Start by understanding what employees truly want: Money, Self-Fulfillment, and Respect. When all three are met, employees thrive. If only one is missing, they’ll stick around. But when two or more are lacking, it’s only a matter of time before they’re out the door. Here’s how to evaluate these three foundational wants:
1. Money
This might seem straightforward, but it’s not just about salary. Employees want to feel that their compensation meets their life’s demands. When an employee asks for a raise, they’re not likely comparing their salary to market rates. Instead, they’re feeling financial pressure—whether from personal spending habits, unexpected life changes, or just the rising cost of living.
How to address it:
- Have a frank conversation with them. Some employees might share that they’re struggling with major expenses, like caring for aging parents or preparing for a new baby, while others might keep it private. Either way, let them know you’re willing to listen.
- Offer advice on career advancement or additional ways to grow their income, such as earning certifications or taking on new responsibilities.
- Ensure your compensation aligns with their role, experience, and market standards. Even the best advice won’t help if they’re genuinely underpaid.
Sometimes, just knowing their boss cares can improve an employee’s outlook. A little empathy and understanding can go a long way in easing financial stress.
2. Self-Fulfillment
Employees don’t just work for money—they work to feel like they’re making a difference. If someone feels stuck in a dead-end job, even a competitive salary won’t be enough to keep them engaged. They need a sense of purpose and the opportunity to grow.
How to address it:
- Spend one-on-one time with your employees to understand their goals. Ask what they enjoy about their role and what they’d like to achieve in the future.
- Provide opportunities for personal and professional growth. For example, many MSP employees want to specialize in areas like IT security or advanced VMware technologies. If possible, invest in training that aligns with their interests and your company’s needs.
- Regularly communicate your MSP’s mission, values, and “why.” Employees want to feel like they’re part of something bigger than themselves.
By showing that you care about their development—not just their output—you can foster a sense of purpose and loyalty that outweighs the desire for a quick pay increase.
3. Respect
Respect is non-negotiable for employee satisfaction. This goes beyond how a manager treats their team—it’s about creating a culture where everyone feels valued and appreciated. Disrespect, isolation, or feeling undervalued can push employees to seek compensation as a coping mechanism or, worse, leave entirely.
How to address it:
- Keep an eye on team dynamics. Cliques or exclusionary behavior can alienate employees, especially introverts who may not naturally gravitate toward social interactions.
- Use tools like employee satisfaction surveys or one-on-one meetings to uncover hidden cultural issues.
- Foster a culture of appreciation. Celebrate wins, recognize contributions, and ensure every team member feels like an integral part of the company.
When employees feel respected by their peers, leaders, and the organization as a whole, they’re far less likely to seek validation through a raise—or by walking out the door.
The Bigger Picture
If employees at your MSP are repeatedly asking for raises, don’t dismiss it as entitlement. More often than not, it’s a sign of deeper dissatisfaction—be it financial stress, lack of fulfillment, or poor culture. Throwing money at the problem might buy you time, but it won’t fix the root cause. Instead, focus on building a workplace that meets employees’ needs for Money, Self-Fulfillment, and Respect.
Need help diagnosing or improving your company culture? RedVine Operations can provide expert coaching to help you create a thriving environment for your team. Let’s work together to transform your MSP into a workplace where employees love to stay and grow. Reach out to us for a needs assessment to see if one of our coaches might be able to lend a hand.