How do I handle an employee asking for a raise?
Short answer
Don't decide in the meeting. Thank them, ask what they're basing it on, and give a real answer within a week.
Buy time without dodging
'I take this seriously. Give me a week to look at the numbers and our pay structure, and I'll come back with a real answer.' That sentence prevents an emotional yes you regret and an emotional no that costs you a great employee.
Then do the math
Compare to local market, compare to what they actually produce, ask if you'd be sad if they quit Friday. Come back with a yes, a no, or a path: 'Not today, here's exactly what gets you there in six months.'
Ask your version of this question
This is one business owner-tested take. Your shop size, trade, and team change the answer. Ask the exact version inside Ask a Shop Owner and get a response grounded in how owners like you actually handled it.