Home / Giving or Denying a Raise
Situation Navigator

You have to tell them what happened with their raise.

Four moves for the comp conversation, whether the answer is yes or no, not a general essay on compensation philosophy.

01
Know the real reason before you're in the room
"It's not up to me" is true and useless at the same time. Know specifically what drove the number, rating, budget, market band, timing, before you say a word to them. You don't need to control the outcome to own the explanation.
02
If it's yes, don't undersell it
"It's not huge, but..." turns good news into an apology. State the number, state why they earned it, and stop talking. Let it land as the win it is.
03
If it's no, don't hide behind policy
Blaming "corporate" or "the budget" as if you had no part in it reads as a dodge, even when it's partly true. Give the real, specific reason. It's harder to say and easier to respect.
04
Leave with a path either way
A yes needs a next milestone so it doesn't feel like the ceiling. A no needs a real target and a real date, not "let's revisit it," with nothing attached to when or how.
What Actually Determines the Number

Most first-time managers either overstate their control ("I decided this") or understate it ("it's totally out of my hands") and both versions erode trust. The honest version is usually a mix: their performance rating, where their pay sits inside the band for their role, the market data for that role this cycle, and how much budget the cycle released. Knowing which of those actually moved the needle for this person, specifically, is what lets you give a real answer instead of a shrug.

In the Moment (When It's a No)

"I want to be straight with you: I couldn't get you an increase this cycle. Here's specifically why, [the real reason, band position, budget, timing], not a vague one. I know that's not what you wanted to hear. Here's what would change it, and roughly when."

When They Ask About Someone Else's Raise

"Why did [coworker] get more" is one of the harder follow-ups, and deflecting it fully ("I can't discuss other people's pay") is technically correct and still lands as evasive. You don't have to share their coworker's number. You can still answer the real question underneath it: what would move this person specifically into a higher band or a bigger increase next cycle. Answer that part directly.

Template · Script
Compensation Conversation Script →
Career Advice
Negotiating a Raise or Offer →
Template
Accomplishments Tracker Template →