How to deal with requests from employees for a pay rise

By KMC Human Resources

17 Mar 2015

You could almost hear the sharp intake of breath from employers up and down the country last month when David Cameron made a call to business leaders at the British Chambers of Commerce annual conference to consider pay increases for employees.

By Karen Credie, KMCHR.

Cameron used his speech at the BCC conference to rally business leaders; saying that now is the time to reward staff with pay rises as economic conditions 'have not been this good for a long time'.

But what should you do if an employee asks for a pay rise? And how can you avoid an onslaught of pay increase requests? Here are some of our top tips.

Be considered

Do your research Larger employers often have set ‘salary bands’ that determine how much an employee can be paid up to. SMEs, however, tend to have a less rigid approach. It is important that you do your research and ensure that the level you pay your employees is competitive within the market/for the function of an individual role. Underpaying your staff can mean that you will lose your most talented employees to other offers, which may cost you dearly in the long-term.

Set targets

Keep a level playing field It is important to adopt a fair approach when considering any pay rise for employees and anybody that requests a pay rise should be treated in exactly the same way. You also need to consider other people in your organisation; a reactionary stance whereby only those that ask are awarded pay increases can leave you open to potential claims – especially if it so happens that you end up paying more, or less, to a person of a specific gender/race/religion than another employee with a similar role and responsibilities.

Consider non-monetary rewards

Latest news

1

Architects secure planning permission for listed landmark regeneration project in Clitheroe Regeneration of the 19th-century former Wheatsheaf Hotel and Pub on Whalley Road, Clitheroe

Architects secure planning permission for listed landmark regeneration project in Clitheroe

05 Feb 2026

2

New operator for Winter Gardens The Winter Gardens

New operator for Winter Gardens

05 Feb 2026

3

£350m Blackpool Talbot Gateway nears full occupancy with NHS move 300 NHS Staff Have Moved Into No 1 Bickerstaffe Square

£350m Blackpool Talbot Gateway nears full occupancy with NHS move

04 Feb 2026

4

Group of eight community pharmacies sold to Cohens Chemist Smithsons Pharmacy

Group of eight community pharmacies sold to Cohens Chemist

04 Feb 2026

5

Northstone appoints James Hargreaves Plumbing Supplies as nominated supplier across the North West Northstone and James Hargreaves

Northstone appoints James Hargreaves Plumbing Supplies as nominated supplier across the North West

04 Feb 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

E-commerce in 2026: From stores to systems
PTC banner Feb 26.jpg.jpg
LBV Hub Networking
10 Feb 2026 - 10 Feb 2026

E-commerce in 2026: From stores to systems

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Degree apprenticeship information sessions for businesses
student centre entrance.jfif.jpg
LBV Hub Webinar
10 Feb 2026 - 13 Feb 2026

Degree apprenticeship information sessions for businesses

University of Lancashire, Virtual event, -

10:00 - 09:30

The Business Network Central and East Lancashire
LBV Header (29).png.png
LBV Hub Networking
11 Feb 2026 - 11 Feb 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

The Ultimate Network – February
Logo.jpg.jpg
LBV Hub Networking
19 Feb 2026 - 19 Feb 2026

The Ultimate Network – February

Brockholes Nature Reserve, Samlesbury, PR5 0AG

16:00 - 18:00

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Armed Forces Covenant Business Engagement
Logo.jpg.jpg
LBV Hub Seminars
24 Feb 2026 - 24 Feb 2026

Armed Forces Covenant Business Engagement

Morecambe Football Club, Morecambe, LA4 4TB

09:00 - 15:00

Preston Freelancer Meet-Up: February
LBV Hub Networking
26 Feb 2026 - 26 Feb 2026

Preston Freelancer Meet-Up: February

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Your marketing measurement is useless
Event header.png.png
LBV Hub Seminars
04 Mar 2026 - 04 Mar 2026

Your marketing measurement is useless

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin