Reward and remuneration

How to respond to pay rise requests: 13 real-world scenarios and template scripts

Simone Wu — Fri, 06 Jun 2025 17:00:00 +0000

How to respond to pay rise requests: 13 real-world scenarios and template scripts Simone Wu

Even the best-prepared leaders can find it challenging to respond to pay rise requests, particularly during economic downturns. This guide provides practical, real-world scenarios and word-for-word responses to help you navigate these crucial discussions with confidence and care.

Common scenarios and responses to help you respond to pay rise requests

Here are some of the most frequent situations you’ll encounter and how to handle them effectively:

Scenario 1: The direct request

Employee: “I’ve been performing well and would like to discuss a salary increase.”

Response: “I appreciate you bringing up your pay rise request, and you’re right – your performance has been strong, particularly on the Polaris project. We’re currently under a company-wide salary freeze due to market conditions.

“However, I’d like to discuss alternative ways to recognise your contributions, such as leading our new client initiative, which could position you well for advancement when market conditions improve. Would you be open to exploring these options?”

Scenario 2: The competitive offer

Employee: “I’ve received an offer with higher pay from another company.”

Response: “Thank you for being upfront about this. While we can’t match the salary offer right now due to our current financial constraints, I value your contributions and want to understand what aspects of your role and career growth matter most to you.

“Could we discuss a salary negotiation and development plan that includes increased responsibilities and a compensation performance review in six months? I’m also authorised to offer additional Paid Time Off (PTO) and flexible working hours immediately.”

Scenario 3: The equity comparison

Employee: “I’ve learned that colleagues in similar roles earn more than me.”

Response: “Thank you for raising this concern. Pay equity is extremely important to us. While I can’t discuss other employees’ specific compensation, I want to ensure you understand how we determine salary bands and where your role fits. Let me walk you through our framework and the factors we consider, including experience, specialised skills, and tenure.

“I want to work with you to identify gaps in these areas and create a development plan to address them. Although we can’t adjust salaries immediately, I commit to reviewing your compensation against these benchmarks in our next review cycle.”

Scenario 4: The increased responsibilities

Employee: “I’ve taken on several new responsibilities since my last review, and I believe my compensation should reflect this.”

Response: “You’re absolutely right to bring this up. I’ve noticed your expanded role, particularly in leading the marketing automation initiative. While we can’t increase salaries right now, I want to formally acknowledge these new responsibilities. I propose to update your title to Senior Specialist, with a pay increase in the form of a spot bonus of $3,000 and priority consideration for the Team Lead role opening up in Q4.

“I’d also like to enrol you in our leadership development programme, typically reserved for management positions. Can we discuss how these professional development opportunities align with your career goals?”

Scenario 5: The performance-based request

Employee: “I’ve consistently exceeded my targets and brought in significant revenue. Shouldn’t this merit a raise?”

Response: “Your outstanding performance hasn’t gone unnoticed – you’ve exceeded targets by 130% this year. While base salary increases are frozen in our current climate, I’ve secured approval to restructure your bonus scheme.

“Based on your current performance levels, this would increase your earnings potential by 20%. I can also fast-track you for our high-potential programme, which includes executive mentoring and priority for promotion when positions open up. Would you like to review the details of this enhanced incentive structure?”

Scenario 6: The skill upgrade

Employee: “I’ve completed several certifications and improved my skills. I believe I’m now worth more to the company.”

Response: “Congratulations on your professional development – achieving those AWS certifications is a significant accomplishment. You’re right that this increases your value to the team. While we can’t adjust base pay currently, I’ve created a new ‘technical specialist’ designation that comes with a quarterly skills bonus of $1,500.

“I’d also like to create a new cloud architecture working group with you as the lead, which includes a project leadership allowance. Additionally, would you be interested in becoming our internal AWS training leader? This role comes with its own compensation structure.”

Scenario 7: The retention risk

Employee: “I’ve been approached by recruiters frequently, and the market rate for my role seems much higher.”

Response: “Thank you for being transparent about this. You’re right that the market is active for your skills, and we want to ensure you continue to grow with us. While we’re limited on base salary adjustments now, I can offer an immediate retention bonus of $8,000, split over the next two quarters.

“I’m also creating a personal development fund of $2,000 annually for you to use on any professional growth activities you choose. Most importantly, I want to map out your next career move with us – I see you as a potential candidate for the Regional Director role we’re creating. Can we discuss what that path might look like?”

For guidance on how to respond to pay rise requests, see our companion article: Managing salary conversations during economic downturns: A leader’s guide to basic principles

Managing high performers who are underpaid

High performers who are underpaid present a unique challenge during downturns – they’re often your most valuable team members, yet also the most at risk of departure. Here’s how to approach these crucial retention conversations:

Scenario 1: The rising star

For your top performer who’s below market rate: “Suzu, your impact on the team is exceptional. While we can’t adjust salaries right now, I’ve secured approval for you to lead our biggest upcoming project. This includes a 10% project bonus and exposure to senior leadership. I’m also committing to a compensation review in Q3 when our financial situation is projected to improve.”

Scenario 2: The veteran expert

For experienced high performers: “William, your expertise is invaluable to us. I want to be transparent – while we can’t offer a raise now, I’ve advocated for and received approval for you to attend three industry conferences of your choice this year, plus a dedicated learning budget. I’d also like to create a formal mentorship programme with you as the lead, which includes a stipend. Let’s also set a concrete timeline for reviewing compensation once our key financial metrics recover.”

Scenario 3: The technical specialist

For the highly skilled technical expert: “Shah, your deep expertise in cloud architecture has been crucial for our digital transformation. While we can’t match market rates right now, I’ve arranged for you to spend 20% of your time on independent research and development projects.

“Additionally, we’re adding a technology leadership allowance of $500 monthly for your role as our cloud champion, and I’ve secured a budget for you to build your own small team by Q3.”

Scenario 4: The client relationship manager

For the revenue-generating relationship builder: “Krystine, your client relationships have generated consistent growth even in this downturn. Although we can’t adjust your base salary now, I’ve restructured your commission framework to increase your earning potential by 25% on new business.

“I’m also adding you to our executive client advisory board, which includes a quarterly bonus and fast-tracking your promotion to Senior Manager once we hit our Q4 targets.”

Scenario 5: The innovation driver

For the creative problem-solver: “Tony, your ability to innovate and improve our processes has saved us significant costs this year. While we can’t offer the raise you deserve right now, I’ve created a special innovation bonus structure where you’ll receive 15% of documented cost savings from your improvement initiatives. I’m also giving you first right of refusal on our new digital transformation projects, each with its own project completion bonus.”

Scenario 6: The emerging leader

For the high-potential future leader: “Yakita, your leadership potential is exceptional, and I know you’re currently under market rate. While we can’t adjust your base pay now, I’ve enrolled you in our executive leadership programme, which typically requires a senior director level.

“This includes executive coaching worth £10,000 annually, shadowing opportunities with our C-suite, and priority consideration for the regional director role we’re creating next year. I’m also adding you to our high-potential bonus pool, which pays out quarterly based on company performance.”

Find your Next Great Hire

Long-term retention strategies

When facing compensation constraints, organisations need to develop comprehensive strategies that focus on immediate retention and long-term engagement.

While competitive pay remains important, employees who feel valued, see clear growth opportunities, and understand their path forward are more likely to stay, even when immediate financial rewards are limited.

Successful retention strategies combine tangible career development opportunities with transparent communication about future possibilities. This approach helps maintain employee motivation and commitment while building a foundation for sustained engagement that extends beyond compensation alone.

Here are key elements to consider:

Build career equity

Create opportunities for employees to gain valuable experience and skills that increase their market value. This might include cross-functional projects, leadership opportunities, or specialised training.

Maintain momentum

Keep regular development conversations active and encourage employees to ask for a pay rise if they feel deserving. Use tools like career mapping and skill assessments to show progress despite limited financial growth.

Plan for recovery

Be explicit about how employees will benefit when business conditions improve. Document commitments and create clear triggers for when compensation reviews will resume.

Research comparable salaries

To ensure fair compensation for each role and improve transparency around career paths, consider using resources like the Michael Page Salary Guide to benchmark average salary ranges in your industry. Employees value when their company openly references trusted, up-to-date data sources and shows a commitment to pay equity by making compensation decisions based on market standards.

Essential takeaways for mastering challenging compensation conversations

Remember these key principles when handling compensation discussions:

Always acknowledge the validity of the request
Show appreciation for their contribution and transparency
Explain context without making excuses
Offer immediate alternatives where possible
Create clear timelines for future reviews
Document commitments and follow through

Explore more salary insights

Get a comprehensive view of salaries across various industries and roles with our 2025 Michael Page Salary Guide, which features the average salary of roles in Hong Kong’s dynamic job market, or use our Salary Comparison Tool to see how your compensation compares to industry standards.

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Managing salary discussions during economic downturns: A leader’s guide to basic principles

Simone Wu — Sat, 01 Feb 2025 17:00:00 +0000

Managing salary discussions during economic downturns: A leader’s guide to basic principles Simone Wu

One of the most challenging tasks in leadership has to be having a genuine discussion about compensation – especially in economically unpredictable times.

Whether you’re a seasoned executive or a first-time manager, discussing salary increase opportunities during a downturn requires a balance of empathy, transparency, and business acumen.

Understanding the context before salary discussions

Economic downturns affect everyone. Your employees are likely feeling the impact of inflation, market uncertainty, and possibly even witnessing redundancies in their professional networks.

As a leader, you’re tasked with bridging the gap between these genuine concerns and your organisation’s financial constraints.

Preparing for the conversation

Effective salary negotiation requires thorough preparation, yet many leaders find themselves struggling to balance employee expectations with business realities. To avoid this common pitfall, start by:

Reviewing your company’s financial position and how it translates to departmental salary budgets
Gathering current market data for similar roles in your industry and understanding salary range expectations
Understanding each employee’s current compensation package, overall performance, work history, and career trajectory
Preparing specific examples of how economic conditions are affecting your organisation

The key is to arm yourself with concrete data while remaining flexible enough to have a human conversation. This isn’t just about numbers – it’s about people’s livelihoods. Think of these conversations as building blocks for long-term trust. Here’s how to approach them:

Lead with empathy

Acknowledge the challenging environment upfront. A simple “I understand these are difficult times, and I want to have an open discussion about your salary expectations” can set the right tone.

Be transparent about reality

Share appropriate context about business performance and constraints. Your employees are adults who can handle the truth if it’s delivered with respect and clarity.

Focus on total value

Compensation isn’t just about base salary. Highlight the complete package, which includes benefits, learning opportunities, and workplace flexibility. This isn’t about deflecting – it’s about painting the whole picture, including additional benefits beyond base pay.

Master the fundamentals of salary discussions

When handling pay rise requests during a downturn, follow these essential principles:

Always acknowledge the validity of the request
Show appreciation for their contribution and transparency
Explain context without making excuses
Offer immediate alternatives where possible
Create clear timelines for future reviews
Focus on total compensation, not just base salary
Link development opportunities to career growth
Document commitments and follow through

For practical examples and specific scenarios, see our companion article: How to respond to pay rise requests: 13 real-world scenarios and template scripts

Alternative compensation strategies

While traditional pay rises remain the most straightforward way to recognize and reward employees, economic downturns often require creative thinking about compensation. When budget constraints make immediate pay rises impossible, leaders need to explore alternative ways to provide value and demonstrate appreciation for their team members.

Short-term solutions:

One-time performance bonuses
Extra paid time off
Flexible working arrangements
Priority for high-visibility projects

Long-term investments:

Mentorship programmes
Professional certification funding
Skills development opportunities
Future salary review sessions tied to business recovery milestones

Communication best practices

The success of these conversations often lies in the how, not just the what. Consider these approaches:

Schedule dedicated time in a private setting
Listen more than you speak
Take notes and share follow-up in writing
Stay connected with regular check-ins
Be specific about timelines and next steps

How to build trust through salary conversations during economic uncertainty

Navigating a salary discussion during a downturn is about more than just delivering news about compensation constraints. It’s an opportunity for refined negotiation strategies to demonstrate leadership, develop trust, build engagement, and strengthen relationships with your team.

A negotiation process also allows leaders to understand employee needs and make informed decisions as part of the hiring process.

By approaching these discussions with preparation, empathy, and a focus on the future, you can maintain team engagement and establish stronger relationships when economic conditions improve.

Remember, your employees will likely forget the specific numbers discussed, but they’ll always remember how you made them feel during challenging times. Make these conversations count.

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The role of salary transparency in reducing workplace inequality

Simone Wu — Wed, 01 Jan 2025 16:00:00 +0000

The role of salary transparency in reducing workplace inequality Simone Wu

The global conversation around pay in the workplace has shifted significantly in recent years, with salary transparency becoming a central topic in job markets across the Asia Pacific. What was once considered off-limits or even taboo is now increasingly seen as a step toward building fairness and equity in the workplace.

This isn’t a passing trend. Employers and employees alike recognise that open conversations about salary can help address inequalities and create a more level playing field for everyone.

While the specific regulations and cultural attitudes towards pay transparency vary from country to country, the overall movement towards greater openness is gaining momentum throughout the region.

What is salary transparency?

Salary transparency refers to the practice of openly sharing information about pay. This can range from listing salary ranges in job ads to providing detailed pay scales across an organisation. It encompasses various levels of openness, from sharing basic salary ranges in job postings to full transparency where all employees' compensation details are accessible internally. This approach represents a significant shift from traditional practices where compensation discussions were often considered taboo.

Benefits of salary transparency

Against this backdrop of changing attitudes, salary transparency offers several key benefits while working toward crucial workplace goals:

Enables organisations to craft competitive compensation packages that attract top talent
Helps build a positive employer reputation
Fosters a sense of trust and open communication among employees
Saves time and resources for both job seekers and employers
Leads to more effective candidate filtering
Empowers employees to negotiate fair wages
Helps reduce pay disparities based on gender, race, or other factors
Increases employee satisfaction and retention
Streamlines the hiring process
Leads to more focused and productive salary discussions

Current market practices in Hong Kong

While salary transparency is gaining attention globally, its implementation varies significantly across Hong Kong's market. “We also have clients specifically asking us to remove salary ranges from advertisements,” notes Olga Yung, Managing Director at Michael Page Hong Kong.

She adds: “This is mainly due to the hires at times related to replacements whether it is someone who is moving on from the company or relocating to another role within the company. Generally, larger corporations/conglomerates prefer salaries to be confidential and do not want their staff to see what the salary ranges are.”

The practice of including salary information in job postings varies significantly across different market segments. As Rupert Forster, Senior Managing Director at Michael Page Greater China, observes, this variation depends on several key factors:

Company type (large multinationals vs. SMEs)
Origin (domestic vs. foreign companies)
Industry sector (specialist markets like Financial Services vs. more general sectors)
Job level (junior vs. senior positions)

From a recruitment perspective, Michael Page consultants take a nuanced approach to salary disclosure.

“We do not insist on this if they do not want it. Given how sensitive conglomerates and Hong Kong corporates are about salaries on ads these days, we do take an extra step to ask if we can include salary ranges in the ad (and we will explain including such information draws in more candidates),” explains Olga Yung.

In Hong Kong’s highly competitive job market, salary transparency has become a strategic tool for companies aiming to attract and retain top talent. As professionals increasingly seek clear compensation structures and equitable pay practices, transparent salary information helps distinguish employers and build trust.

With a strong emphasis on financial security and career advancement in Hong Kong, providing upfront salary details can set companies apart, streamline the recruitment process, and attract candidates looking for clarity and fairness in their employment terms.

Platform requirements and market practice

In Hong Kong, job platforms encourage salary transparency, though actual practices vary. A 2022 report by JobsDB by SEEK highlights that 30% of respondents in Hong Kong will first look at the salary information in a job advertisement.

For guidance on how to respond to pay rise requests, see our article: Managing salary conversations during economic downturns: A leader’s guide to basic principles

Addressing gender pay gaps

The gender pay gap is the difference in average earnings between men and women in the workforce. It is typically expressed as a percentage of men’s earnings and can be influenced by several factors, including occupational segregation, caregiving responsibilities, and educational background.

The current state of gender pay equity

According to the Hong Kong Talent Trends 2024 Report, many employees have mixed feelings about their employer’s efforts to address pay equity, highlighting the need for ongoing attention.

Some 23% of women are satisfied with their employers’ efforts to close the gender pay gap; 27% are dissatisfied, 37% are neutral, and 13% are uninterested. The survey also revealed a significant disparity in DE&I priorities between men and women.

‘Closing the gender pay gap’ was ranked as women’s most important DE&I initiative but only a fourth priority by men. It’s crucial to understand that the gender pay gap is not a simple matter of unequal pay for equal work, which is illegal in many countries.

How pay transparency tackles pay disparities

The gender pay gap is a complex issue, deeply intertwined with broader structural inequalities in the labour market. These include bias in hiring, promotion, and compensation decisions, and the underrepresentation of women in senior, higher-paying positions.

Promoting salary transparency helps level the playing field by:

Empowering women and other underrepresented groups to negotiate fair wages
Providing clear pay structures, enabling employees to advocate for themselves
Reducing the likelihood of accepting less than deserved due to lack of information

Empowering employees through transparent pay

The practical implementation of salary transparency creates tangible opportunities for employee empowerment. When organisations provide clear access to compensation information, employees can:

Make more informed career decisions
Better understand their market value
Develop clearer career progression paths
Take a more active role in their compensation discussions

Effective implementation typically involves:

Providing clear salary bands and progression criteria
Offering regular market benchmarking updates
Creating structured processes for compensation reviews
Ensuring consistent communication about pay policies

When organisations successfully implement transparent pay practices, the impact extends beyond individual employees. Teams experience:

More productive compensation discussions
Increased trust in leadership decisions
Greater understanding of career development opportunities
Improved collaboration and reduced pay-related tensions

From a recruitment perspective, clear salary information helps candidates make informed decisions earlier in the hiring process, leading to more efficient and focused discussions about career opportunities and professional growth. While the benefits of transparent pay practices are clear, organisations often face implementation challenges that require careful consideration and strategic planning.

Action steps for employers and employees

Embracing salary transparency isn’t just about compliance – it is about fostering trust, fairness, and engagement in your organisation. Here's how both employers and employees can take meaningful steps towards greater pay transparency while addressing common challenges:

For Employers

1. Conduct a pay equity audit:

Use data analytics to identify and address unexplained pay gaps.

2. Develop a clear compensation philosophy and structure:

Clearly define how pay is determined, including factors like skills, experience, and performance.
Communicate this structure to all employees to ensure understanding and buy-in.

3. Train managers on discussing pay transparently:

Equip leaders with the skills to have open, constructive conversations about compensation.
Include training on handling difficult questions and addressing pay discrepancies.

4. Gradually increase transparency:

Start by including salary ranges in job postings.
Progress to sharing pay bands for internal roles and eventually consider full pay transparency.
Case study: Buffer’s full pay transparency policy has led to increased trust and an increase in job applications.

5. Consider platform-specific strategies

When posting job advertisements, consider that different platforms and markets may have varying requirements and norms regarding salary disclosure.

Additional market considerations

When implementing these steps, consider:

Role seniority: Adjust transparency levels for different job levels
Industry standards: Consider sector-specific compensation practices
Platform requirements: Comply with job board policies on salary disclosure
Company culture: Ensure alignment with organisational values and goals

For Employees

1. Research industry standards:

Use resources like salary guides to understand market rates for your role and experience level.

According to our 2024 Candidate Pulse survey, job applicants in Hong Kong primarily rely on these top three sources for the latest salary information, in order of preference: first, salary reports; second, job advertisements; and third, recruitment agencies.

2. Initiate conversations about pay transparency:

Respectfully ask your HR department or manager about the company’s stance on pay transparency.
Suggest anonymous salary surveys or the creation of pay bands as initial steps.

3. Advocate for clear communication:

Request regular updates on the company’s compensation philosophy and practices.
Encourage leadership to share how pay decisions are made, even if specific numbers aren’t disclosed.

4. Support colleagues in discussions about fair pay:

Share industry salary information with peers (where legally and ethically appropriate).
Advocate for equal pay for equal work across all demographics.
Commit to taking at least one step towards greater salary transparency in the next 30 days. Whether you’re an employer or an employee, your actions can contribute to a more equitable and transparent workplace.

Challenges of Implementing salary transparency

While salary transparency brings numerous benefits, it also presents challenges for employers. Transparent pay structures can lead to internal dissatisfaction if employees perceive wage discrepancies, potentially impacting morale and engagement.

On top of that, sharing salary ranges publicly may spark wage competition among companies, making it challenging for businesses to retain top talent without continually adjusting compensation levels. Implementing transparency requires thoughtful planning to maintain fair compensation and clear communication to ensure employees understand how pay decisions align with experience and performance.

The future of salary transparency in Hong Kong

As Hong Kong's workforce continues evolving and aligning with global standards, the push for pay transparency will likely grow. This shift addresses pay equity and positions companies as progressive and employee-focused, which is increasingly important in today’s competitive job market.

Emerging trends on salary transparency

As the landscape of work continues to evolve, we can anticipate several key trends in salary transparency:

AI-driven fairness: The increased use of generative AI and data analytics will play a pivotal role in identifying and addressing pay disparities, ensuring fairer compensation practices.

Transparency as a competitive edge: More companies will recognise the benefits of transparent pay practices as a means to attract and retain top talent, fostering a positive employer brand.

Regulatory push: There is a growing likelihood of stricter legislation mandating greater pay transparency, particularly for larger corporations, reflecting a societal shift towards greater fairness in the workplace.

Moving towards a fairer workplace

Salary transparency is a powerful tool in the quest for workplace equality. By embracing this approach as part of retention strategies, organisations can promote accountability, build trust, and empower employees to advocate for fair pay.

As recruitment professionals, we have a unique opportunity to champion these changes, supporting employers and employees in creating more equitable workplaces.

Explore our job listings and the annual salary guides to stay informed about current salary trends and benchmarks. By fostering transparency in pay information, we can contribute to Hong Kong’s fairer and more inclusive job market.

Explore more salary insights

Get a comprehensive view of salaries across various industries and roles with our Michael Page Salary Guide, which features the average salary of roles in Hong Kong’s dynamic job market, or use our Salary Comparison Tool to see how your compensation compares to industry standards.

Ready to hire? We specialise in a variety of sectors and are ready to discuss your vacancy. Contact us and we’ll find the right consultant for your location and role.

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Simone Wu

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Reward and remuneration

How to respond to pay rise requests: 13 real-world scenarios and template scripts

Common scenarios and responses to help you respond to pay rise requests

Scenario 1: The direct request

Scenario 2: The competitive offer

Scenario 3: The equity comparison

Scenario 4: The increased responsibilities

Scenario 5: The performance-based request

Scenario 6: The skill upgrade

Scenario 7: The retention risk

Managing high performers who are underpaid

Scenario 1: The rising star

Scenario 2: The veteran expert

Scenario 3: The technical specialist

Scenario 4: The client relationship manager

Scenario 5: The innovation driver

Scenario 6: The emerging leader

Long-term retention strategies

Build career equity

Maintain momentum

Plan for recovery

Research comparable salaries

Essential takeaways for mastering challenging compensation conversations

Explore more salary insights

Join over 60,000 readers!

Topics

Managing salary discussions during economic downturns: A leader’s guide to basic principles

Understanding the context before salary discussions

Preparing for the conversation

Lead with empathy

Be transparent about reality

Focus on total value

Master the fundamentals of salary discussions

Alternative compensation strategies

Short-term solutions:

Long-term investments:

Communication best practices

How to build trust through salary conversations during economic uncertainty

Explore more salary insights

I need to hire

Popular articles

Advertise Your Role With Us

The role of salary transparency in reducing workplace inequality

What is salary transparency?

Benefits of salary transparency

Current market practices in Hong Kong

Platform requirements and market practice

Addressing gender pay gaps

The current state of gender pay equity

How pay transparency tackles pay disparities

Empowering employees through transparent pay

Action steps for employers and employees

For Employers

1. Conduct a pay equity audit:

2. Develop a clear compensation philosophy and structure:

3. Train managers on discussing pay transparently:

4. Gradually increase transparency:

5. Consider platform-specific strategies

Additional market considerations

For Employees

1. Research industry standards:

2. Initiate conversations about pay transparency:

3. Advocate for clear communication:

4. Support colleagues in discussions about fair pay:

Challenges of Implementing salary transparency

The future of salary transparency in Hong Kong

Emerging trends on salary transparency

Moving towards a fairer workplace

Explore more salary insights

I need to hire

Popular articles

Advertise Your Role With Us