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

  1. 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.
  2. I am not able to give you a raise right now.
  3. 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].
  4. What would change it is [specific]. Pay is next reviewed in [month], and I will put your case forward then if [condition].
  5. 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.

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