Blue-Collar BS

When Raises Hit a Ceiling: Handling Wage Expectations in Small Businesses


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What happens when you bring someone in at top dollar, and now they expect more? It’s a situation plenty of business owners find themselves in—paying a premium upfront to secure talent, only to realize there’s nowhere left to go when raise season rolls around.

Wage expectations can be a minefield, especially when you’ve hired someone at the top of their pay range from day one. Maybe it was out of necessity, maybe you needed to lock them in fast, but now they’re expecting more—except the numbers just don’t add up.

We break down how to navigate these tough conversations without making it personal, how to separate individual value from business realities, and why setting clear pay ceilings upfront is critical. Plus, we dig into alternative ways to keep employees engaged when raises aren’t an option—because not every form of compensation comes in a paycheck.

If you’ve ever struggled with how to tell a great employee “there’s no more money” without killing morale, this episode is for you. We lay out a game plan for setting wage expectations early, restructuring roles to create growth opportunities, and making sure your payroll isn’t running the business instead of you.

Highlights:
  • The risk of bringing someone in at the top of their pay range
  • How to handle the “Why am I not getting a raise?” conversation
  • Why money isn’t always the answer to retention and motivation
  • Setting expectations early to avoid tough talks later
  • Structuring job roles to allow for growth without overpaying

Big news! We just launched https://bluecollarbs.com/ your new home for real talk on blue-collar leadership. Check out our brand-new BSers community, packed with exclusive resources, tools, and discussions to help you level up your business.

Also don’t forget to rate, subscribe and share this episode with someone who you know has struggled with the pay conversation. 

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Brad Herda:

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Blue-Collar BSBy Brad Herda and Steve Doyle

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