Employees have done their homework and will know what value they bring to a business, and they want to receive some kind recognition of that from their employers. If an employee believes they are being neglected or undervalued they may develop a habit of underperforming in their position. Whether or not you decide to reward an individual employee who seeks a raise, show them that they are valuable to your company and provide them with feedback they can use. You don't want them to think you forgot about their request. Even if your answer is no, give them a reason why a raise can't be given. Consider alternatives to a raise in pay, bonuses, special privileges, or extra help. Retaining employees, especially valuable ones, can be difficult. Often it is not more money that your employees seek. It could be recognition, career advancement, more challenging work, and many other factors that play into the daily lives of your employees. I would use employee engagement surveys to collect data, evaluate the results and then turned it into measurable steps for improvements