I run a blue-collar service business. I have an employee who is a good worker, but he is constantly wanting raises – like every 4 to 6 months. I already pay him well above industry average for his position because I do acknowledge that he is a good worker and I like to treat my employees well.

He does work some overtime pay, and during our busy season he nets (not gross, net) as much as 1900 dollars per week, which I believe is doing quite well for just a laborer position. When I tell other people in the industry how much he makes their eyes almost pop out of their heads with disbelief.

Anyhow, he hit me up for another raise after getting a decent raise less than 4 months ago. He is kind of making subtle threats that if he doesn’t get the raise, he will work for someone else (I doubt he can even find anyone willing to match the wage + the overtime hours). I told him that I cannot pay him anymore at this time because I can’t afford to pay him more, which is true, especially since our industry is beginning to slow down a bit and customers are becoming more price conscious.

I am now at the point of souring on the employee because of the chronic requests for raises despite his pay being well above market average. I am at the point of possibly firing him because I grow weary of dealing with such a greedy employee.

What do you folks think is appropriate when you do have a good employee, but that person is constantly asking for raises despite being paid well above market average for that position? Just realize that person will never be happy and cut your losses?