WHAT TO SAY · PAY AND PROMOTION
How to tell an employee their pay rise request is declined
Asking for a raise takes courage. Saying no well keeps their trust: be quick, be honest about the reason, and give them something concrete about the future, without promising what you cannot deliver.
Before you start
- Find out the real reason: budget, timing, pay band or performance.
- Know when pay will next be reviewed and what would make a difference.
The script
- OPEN WITH
[Name], thank you for raising your pay with me. I have looked into it and I want to give you a straight answer.
I am not able to give you a raise right now.
The reason is [budget is frozen until April / you are at the top of the band for this role / I need to see X first].
What would change it is [specific]. Pay is next reviewed in [month], and I will put your case forward then if [condition].
I also want to understand: is there anything else about your role that would make a difference to you?
Replace the [brackets] with real details. Say it in your own words; the structure matters more than the exact wording.
If they say…
“I can get more elsewhere.”
That may be true, and I respect you telling me. I would like to keep you. Let us talk about what I can influence.
“That is not fair.”
I hear you. Tell me what feels unfair, and I will be honest about what I can and cannot change.
What to avoid
- Stalling for weeks without an answer.
- Blaming HR or "the business" with no explanation.
- Promising a raise later that you do not control.