How to Tap Into the Hidden Accounting Talent Pool
17 Apr, 2025
How to Respond When Your Employee Asks for a Salary Increase
17 Apr, 20251-2 minutes
In this blog, you will learn:
- How to respond when your employee asks for a salary increase.
- How to say no to an employee asking for a salary increase.
- More about how our accountancy recruitment services can help you grow your accountancy team.
In the UK, discussing money and salary has always been deemed as awkward and inappropriate, but in today's day and age, attitudes towards salary transparency have changed. With 121s and pay reviews there are more and more opportunities for employees to discuss salary and ask for a salary increase.
It’s no longer considered taboo or unprofessional to discuss salary or even ask for a salary increase. In fact, employers should encourage employees to feel comfortable having open conversations about pay especially if they’re dissatisfied and feel undervalued.
According to our 2025 Accountancy and Finance Report, half of accountancy and finance professionals believe their current salary and benefits don’t reflect their actual value and 36.7% cited a higher salary as their main reason for looking for a new job.
Salary remains the leading priority for accounting professionals and with the ongoing cost of living crisis, it’s likely that employees in your practice may request a pay increase. Being prepared for these conversations ensures you’re not caught off guard and can respond with confidence and clarity.
Throughout this blog, you’ll discover how to respond when your employee asks for a salary increase and how to properly say no to a pay rise request.
How to respond when your employee asks for a salary increase
How to respond when your employee asks for a salary increase:
- Acknowledge and listen to the request.
- Be fair.
- Ask questions.
- Be honest and explain your decision.
- Maintain a positive relationship.
- Discuss in future meetings.
- Document the conversation.
Acknowledge and listen to the request
When an employee asks for a salary increase, whether it's an Accountant, Bookkeeper or a Tax Manager, it’s important to be understanding and listen to the request. Some employees might feel embarrassed talking about salary in the workplace and it’s important to give your employee a chance to discuss their request.
Like any conversation with your employees, listen, be patient and receptive to their request. Create a supportive environment where the employee feels heard and able to discuss their request. By encouraging open conversations in the workplace, employees will feel more comfortable and confident having conversations about salary, goals and even mental health.
Be fair
In any employee negotiation, it's essential for employers to be fair and provide a genuine opportunity for open discussion. If an employee says they are underpaid or thinks they are working above their current title, it’s important to explore their statements and re-evaluate their contributions and responsibility.
Carry out a salary review fairly and transparently to determine if this links to a pay rise and aligns with your budget goals. Compare their current salary with industry averages for similar roles in accountancy to ensure your pay structure remains competitive and fair. By actively managing salary reviews, you can guarantee fair pay in the workplace.
Ask questions
To better understand your employees' reasoning and what it is they are looking for, it is important to ask questions. This will help you assess whether the request aligns with your employees current role and contributions as well as the overall goals of your practice.
It’s important to determine what it is your employee wants and how their performance and/or responsibilities have evolved over time to warrant a pay rise to come to an honest and objective outcome for everyone.
Asking questions also shows that you value your employees' input; it will put them at ease by making them feel like they are having a constructive, two-way conversation.
Be honest and explain your decision
Whether the answer is yes, no or not right now, clearly explain your decision and what happens next. Follow the necessary steps when employees ask for a salary increase, such as keeping a record of the discussion for future reference, to maintain consistency across the business.
Analyse your employees work performance and determine whether they are entitled or eligible for an increase based on the current market worth of their role. If you are not able to facilitate a pay rise at the time, the best way to respond is to be honest.
Instead of simply telling employees they’re not eligible for a pay increase or that the business can’t afford it, take the opportunity to explain the reasoning clearly and constructively.
If budget constraints are a factor, be honest and transparent about business realities and explain the decision. Employees will appreciate your honesty which will in turn help them to understand and accept the outcome - even if it’s not the outcome they hoped for.
If the answer is yes to a pay rise, ensure that your employee understands the requirements and what it means. For example, if you expect the employee to take on additional responsibilities for the salary increase, ensure this is clearly communicated and documented.
Maintain a positive relationship
Regardless of the outcome of the salary increase request, it’s important to handle the conversation with respect to preserve a positive working relationship. It’s important to remain professional and formalise the request so that it becomes a subject for their performance or pay review.
Handling salary increase requests thoughtfully and efficiently not only strengthens trust but also supports employee engagement and retention within your accountancy practice. Even if you can't approve the salary increase you want to be on good terms with your employees and for the outcome not to affect their work.
Showing appreciation for your employees doesn’t only come in the form of a salary increase, but in maintaining trust, morale and respect which instills confidence in your practice and you as an employer.
How to say no to an employee asking for a salary increase
There are several reasons why you might say no to a pay rise, but declining a salary increase request isn’t easy and it can be an uncomfortable job. It is important to be fair and say the right things without offending, upsetting or challenging your employee or affecting employee morale.
If the answer is no, the best way to handle the negotiation positively is to communicate your decision clearly and respectfully and to explain why the request is being declined.
If a salary increase isn’t possible right now, you could outline a path for how they can work towards it in the future. A hard ‘no’ without a roadmap can feel like a dead end. Instead, give your employee something to work towards.
However, if you’ve agreed to revisit the discussion within a certain time frame, stick to it to avoid your employee feeling like you’ve just fobbed them off. Keep a note and follow through, even if the outcome hasn’t changed.
If you can’t support a salary increase, you could explore alternative ‘perks’ such as professional development opportunities or flexible working arrangements to keep them motivated and engaged.
Discover what Accountancy & Finance professionals are looking for in a job
As a specialist accountancy and finance recruitment agency, we understand how to support accountancy practices and private sector businesses in their mission to attract, engage and retain the best talent.
After conducting extensive research with accountancy and finance professionals, we compiled the What Accountancy & Finance Professionals Are Really Looking for in a Job in 2025 report.
The report delves into the key factors shaping job preferences and expectations within the industry and uncovers topics such as preferred salary, perks, benefits, work flexibility and work culture.
Read the full What Accountancy & Finance Professionals Are Really Looking for in a Job in 2025 report here.
Accountancy recruitment services
As specialist accountancy recruiters, we support practices nationwide with their permanent recruitment needs.
Whether you’re searching for a tax, audit or payroll specialist, we will help you to find whoever you need to make your practice thrive.
If you’re struggling to fill a vacancy, why not get in touch with Management Consultant Lauren Bailey on 01772 954200 to see how we can help?
Accountancy jobs
If you’re searching for your next accountancy job, why not take a look at the latest vacancies, or simply upload your CV to be notified when a relevant position becomes available.
Who is Spencer Clarke Group?
Established in 2017, we’re an award winning and progressive recruitment agency based in the heart of the North West. Our reputation is built on trust, expertise and an unwavering commitment to exceed expectations.
In 2024, we were named Recruitment Agency of the Year at the prestigious Recruiter Awards, an accolade we are extremely proud of.
We operate in two sectors:
In eleven specialisms:
Healthcare, Social Care & Nursing
Corporate Functions & Business Support
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