Even if you know the increment request from your Jr. Colleague is genuine, but your situation demands to say 'no'. How will you convince him or her?

Dear Mukesh, The situation you have described does happen to most of us as managers sometimes in our career. If you have agreed on certain yearly targets with your subordinate, and he has achieved the same, then it is upto you to take it up with the decision making authority and convince him / her why you feed the increment needs to be given. However, if you are just "generally happy" with him, but cannot back up your view with facts and data (by this I mean targets v/s achievement, with data points) then obviously the higher-ups may not accept your view that this person deserves what you are proposing. Therefore, it is firstly, very very important that we work with data that supports us.

But then a situation CAN arise that even though you do have facts and data to back up your proposal, the company cannot afford it at that point in time. That is when your relationship with him comes to the fore...

If your relationship with him is a "Trusting" one, with excellent rapport, then he will easily accept your point of view - as to why the organization is not approving this. Even with all the rapport, you will still need to explain to him the reasons -

(a) Why you could not convince your supervisor

(b) What were the reasons

(c) What you expect him to do in the coming year (and immediate few months) to strengthen his claim to help him do his job better.

(d) Offer him a role he is "excited" to perform

(e) You may promise him something in the future, provided you have the backing of the decision maker in your organization

If the above is done, the employee may not necessarily "agree" with your explanation, but will be able to continue without losing motivation and not look out for other opportunities.

Regards

Krish 

Make him happy with a promise to consider specially  along with  annual appraisal and increments.

If the request is genuine, then it should be granted, one way or other. If finance is a problem think about other motivators such as extra perks, flexible times, extra authority etc. etc.

I will assure him/her about next performance plan and i can provide him/her some non-financial benefits.

Explain them politely with proper reasons why you cannot increase his or her pay  but give them some future date that you will increase their pay. And in future you will also compensate them for now. They will understand and accept your offer.

It depends on the situation, but never make promises that you cannot fulfill. If the situation is because the financial situation of the company, you can be honest and explain it. 

If this is temporary, take the chance to challenge them until things change. That means, if you believe that the management will not accept it because they are not satisfied with the performance, then challenge the employees to perform better then you will be able to get management approval.  

Will see the his performance and company profit range. If it is good, then it is yes, if bad then I will tell him to wait.

I agree with all answers.

1. Be honest and open about  the situation/reasons.
2. Give them time period when they will receive an increase

The bestg way to convince some one is to tell him the trouth and explaining him the real situation. never to promise someone somthink which cant be done. also all managers have to make their behavior as an example