Three managers on the secret reasons they’ve said no to pay rises

Every worker knows that asking for a pay rise is easier said than done. Doing overtime, hitting targets, jumping through all the necessary hoops, and receiving praise from all the right places very often still might not be enough. According to a YouGov poll, approximately 40 per cent of working adults have asked for a raise, and 13 per cent of those have been rejected. The truth is, being turned down for a salary increase goes far beyond just missing out on some extra cash. It can feel personal and shameful. Beyond practical cost of living reasons, seeing more money hit your bank account can serve as validation or recognition for loyalty to the company, boost morale, and goes a long way in indicating your value in the company. It might even be a positive indication of your relationship with a manager as well as how willing they are to vouch for you. On the flip side, a rejection can leave workers feeling disgruntled, hard done-by, or even calling recruiters to discuss their options. Shorts There are many factors that might affect whether or not an employee might leave their annual review disappointed. Some managers might cite practical reasons such as tight company budgets or economic pressure, but the truth could be much more personal and shrouded in mystery. The i Paper spoke to three anonymous managers about the secret reasons they have declined a pay rise. *** ‘My narcissistic boss vetoed a pay rise because he didn’t like the guy’ Andy*, 57, consultant Years ago, I was managing about 30 people, and my boss was a very political animal. When annual reviews came around, I was allocated a budget from the corporation to spread across the teams, for either general raises or more targeted pay increases. I picked the members of my team that I felt deserved it because they hadn’t been given one for a long time and they were good workers, or I thought they were worthy of having more because we might lose them if we didn’t. Michael* on my team came in the second category – he had been at the company for four years, was very good at what he did and worked very hard, so I recommended that he receive a pay rise of around £10,000 – up from his base salary of £70,000. But my boss Steven* turned round and said: “I’m not sure you should do that. His technical knowledge is good, but his business knowledge is not.” This was a complete lie. The reason Steven didn’t want to give him a pay rise was because he didn’t like him. Michael was opinionated, forthright, and he said what he thought – which is part of why he was so good at his job. Unfortunately people in authority – someone who is egotistical, a little bit narcissistic – will take that personally, so I think that was the reason. Senior management had the ability to veto decisions that I made so that was that. I ended up being able to negotiate a bit and get Michael a general raise of a couple per cent along with other people. At the time, I told him: “It’s all the company can afford right now.” He didn’t need to hear the real reason – it was embarrassing. But truthfully, after that – in a different context – I took him to one side and said: “You probably ought to look at your options.” (If you start doing that in a context of a salary rise that was turned down, you’re setting yourself up for a potential HR issue). *** ‘She threatened to leave if she didn’t get a rise… so I didn’t give her one’ Karis*, 42, PR I joined a new company and inherited a team of three women: two I really liked, and one I really didn’t. It wasn’t as simple as she wasn’t good, it was more that her attitude was awful. She was entitled and very vocal about ever having to do things she thought were below her. At the same time, she was really well-liked and a popular staff member – I think she had been at the company six years by then. At the beginning, we constantly butted heads and she would question my authority with the team. To be honest, near the end she didn’t even seem that happy at the company. Anyway, at the last annual review, she made a big song and dance about knowing whether she was valued or not if she was recognised with a pay rise – basically threatening to leave. I think she asked for £8,000 or something like that. I think if I had really wanted to I might have been able to push for close to £4,000 or £5,000, but I ended up giving her £1,500, telling her there were budget constraints. There’s probably a part of me hoping she would leave as a result. She made good on her word and left shortly after. I really think the team got along better after that. *** ‘I preferred giving them a one-off bonus, training budget, or path to a promotion over a pay rise‘ Matt*, 32, international e-commerce In this case, the employee was performing well, but I didn’t feel that their role had changed enough to justify the 15 per cent salary increase they had requested. My concern was that once you increase someone’s fixed salary, that cost remains even if the business later has a quieter period. I preferred to reward the person in a way that recognised their contribution without creating an unsustainable long-term commitment. I think I phrased it quite directly. I said something along the lines of: “I’m happy with your work and I do want to recognise what you’ve contributed. However, I don’t think a permanent salary increase is the right option at this stage because your responsibilities haven’t materially changed. What I can offer instead is a one-off performance bonus, support for training, and a clearer path towards a future promotion.” They were disappointed and initially tried to persuade me by pointing to their loyalty, workload and positive results. They also argued that a bonus did not offer the same security as a salary increase. I understood that because, from an employee’s perspective, permanent pay is naturally more valuable. So I explained that I wasn’t trying to avoid rewarding them, but that I needed to separate strong performance in the current role from taking on a larger role with greater responsibility. We eventually agreed on specific targets and responsibilities that would trigger another salary review. I think that helped because the answer became “not yet, and here is what needs to happen”, rather than simply: “no.” The most important thing is not to disguise the decision with vague language. Employees usually know when a manager is avoiding the real reason. It is better to be respectful, explain the commercial reality and offer a genuine alternative rather than something symbolic. *Names changed