BizSugar.com › Employee Benefits › When workers need a raise but you can't afford it

Many small business owners are finding themselves in painful conversations with employees these days, chats that start with "Boss, I'm really strapped for cash — I need a raise." But many companies are also hurting and an owner may need find a way to help a staffer without involving money.

Human resources professionals say that by being creative, owners can give employees something of value, even if it's not a bigger paycheck. Just saying "no" is unwise if you want to hold on to the employee.

Tell an employee seeking a raise, "You deserve it, but I just can't do it right now. Tell me what else would work — what would make your life easier, what would make things better for you?"

Brainstorm with the employee to come up with three or four perks or benefits that would make the employee feel better. For example, a couple more vacation days, or a later arrival or early departure on Fridays in the summertime.