3 month in, HR Manager is leveraging other peoples’ salary to renegotiate his own.

Context: I hired an HR manager for my 70 employee company 3 months ago. He is the only person in the HR dept. and one of his roles is to expand the dept. as necessary to scale with the organization. We agreed up front that his position would be at a certain salary, regular 40 hr on-site work, and responsible for all traditional HR functions (e.g. hiring/firing, employee relations, HMS data maintenance etc…).

Its been about 3 months and now he is asking for a raise as well as a adjustment to his job position to be remote. His reasoning is that it is too expensive to live in the city where we are headquartered and that he is having personal financial issues as a result. What really rubbed me the wrong way was that he used salary information of our executives (of which he has accessed) to argue that he is owed more (he is arguing that he performs executive level work). I completely disagree but at this point we are just talking past each other. The guy is good at recruiting and I've acknowledged this with him in the past. However, whenever I bring up things that he could improve on, he is defensive and unwilling to take responsibility.

I acknowledge the importance of taking his remarks as constructive criticism and I plan on being a lot clearer about expectations next time I hire. However, I'm not sure how to proceed here. I want to terminate him because I can't trust him anymore but I don't know if I should express that to him when I do. Any advice?

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