08 Apr What to do when a manager asks for a raise
When a senior, salaried employee asks for a pay rise, one of the most effective things you can do as a manager is put the responsibility back on them to justify it commercially.
Too many operators carry the full burden of the decision themselves. At a senior level, a key part of leadership is being able to articulate your own value in business terms.
If a senior employee can’t do that clearly, it’s a signal in itself.
What follows is a practical framework, along with specific, structured questions you can use to guide that conversation.
Reframe the Conversation Early
Once the request is on the table, set the tone:
“I’m open to reviewing this, but I’ll need you to walk me through how you see your value aligning with that salary.”
This helps set a professional standard. It also removes emotion and sets the conversation as a business case, not a favour. The core principle – make them build a case. At a senior level, a pay rise should resemble a mini business proposal.
Your role is not to interrogate aggressively, but to draw out clarity, evidence, and commercial thinking.
Establish the Asking Price (Be Specific)
You need a number. Not “more money” – a clear figure.
Ask:
“What salary are you seeking?”
“What’s that increase as a percentage from your current package?”
“How did you arrive at that number?”
If they can’t clearly state and justify the figure, they likely haven’t thought it through properly. Strong operators usually come prepared.
Link Salary to Business Impact
This is the most important part of the conversation.
Ask:
“What measurable impact have you had on the business over the past 6–12 months?”
“Where do you believe you’ve directly improved revenue, profit, or cost control?”
“What outcomes have changed because of your leadership?”
“If we removed your contribution, what would the business feel immediately?”
You’re looking for answers like:
“We reduced wage costs from 33% to 29% while maintaining revenue”
“Functions revenue is up $200K year-on-year due to improved conversion”
“Kitchen turnover dropped significantly, saving recruitment and training costs”
If the answers are vague (“I’ve been working really hard”), you’ve identified a gap.
Test Their Understanding of the Role
This is where you separate high quality operators from passengers.
Ask:
“What do you believe someone in your role should be delivering at a high level?”
“Where do you think you’re exceeding those expectations?”
“Where do you think you still have room to improve?”
This tests self-awareness and reveals whether they understand the commercial expectations of their position. A senior leader who can’t articulate this clearly is not yet operating at the level they think they are.
Introduce Market Reality
This introduces external context.
Ask:
“What have you seen in the market that informs your expectations?”
“Are you aware of what similar roles are being paid locally?”
“Have you had approaches or offers from other venues?”
You’re not encouraging them to leave, but you are testing whether this is market-driven and whether there’s a retention risk.
Talk Future Value, Not Just Past Performance
A common mistake is focusing only on what’s already been done. Shift the conversation to future outcomes.
Ask:
“What would justify this salary over the next 12 months?”
“What initiatives or changes are you planning to drive?”
“How will the business be stronger if we invest in you at this level?”
“What does success look like in this role if we say yes?”
This is critical. You’re not just paying for past performance you’re investing in future return.
Pressure-Test the Number
Once they’ve made their case, apply some commercial pressure by shifting the conversation to accountability.
Ask:
“If we were to invest an additional $15K in this role, where does that return come from?”
“How would you ensure that increase is offset or justified in the P&L?”
“What KPIs would you be comfortable being measured against at that salary?”
Strong leaders will embrace this. Weaker ones will retreat into generalities.
Explore Flexibility in Structure
Sometimes the issue isn’t the total package, it’s how it’s structured.
Ask:
“Would you be open to part of this increase being performance-based?”
“What KPIs would you feel confident tying a bonus to?”
“Would an expanded role with higher earning potential interest you?”
This can unlock solutions that protect the business while rewarding performance.
Wrap-up Professionally
At the end of the discussion, summarise:
“Thanks, that gives me a clear picture of how you’re viewing your contribution and the role. I’ll take this away, consider it along with the needs of the business, and come back to you with a decision.”
This reinforces that you’ve listened and your decision will be carefully considered, not reactive.
What Good Looks Like
A strong senior employee will speak in numbers, not feelings. They’ll link their work to profit, not just effort. They’ll demonstrate awareness of market conditions, ownership of results and be open to accountability. If you’re hearing that, you’re likely dealing with someone worth investing in.
What Weakness Looks Like
Be cautious if you hear:
“I just feel like I deserve it”
“I’ve been here a long time”
“Other people are getting paid more” (without evidence)
Vague or unmeasurable contributions.
That doesn’t automatically mean “no”, but it does mean there’s a capability gap, or they’re not yet operating at a senior commercial level.
The Takeaway
At this level, a pay rise conversation should feel less like a negotiation and more like a business review. Your job isn’t to catch them out, it’s to elevate the standard of thinking. The real test isn’t whether they ask for more money, it’s whether they can clearly explain why the business should agree.
