Have you recently had an employee request a salary uplift? Given that one-third (33%) of accountancy and finance professionals are dissatisfied with their pay, it’s highly likely that – if you haven’t already – you will have to navigate this scenario in the near future.

1. Have you increased salaries for more than just inflation reasons?

In the past year, the overwhelming majority (90%) of accountancy and finance employers have increased their employees’ salaries, according to our 2024 Salary and Recruiting Trends Guide. However, almost three-quarters (73%) of these increases were cited as being due to the rise in the cost of living, compared to just over half (51%) who said the same the year prior. This indicates that factors other than inflation are becoming less influential in salary adjustments. Whether blanket percentage increases are fair is up for debate; if an employee is outperforming their colleagues or have had an increase in their responsibilities, it would make sense for them to receive a pay rise to reflect their work, as well as the economic climate.

2. Could your employees get a higher salary elsewhere?

Staying competitive in the current market is crucial, as 88% of businesses across the accountancy and finance sector have faced skill shortages in the last year, emphasising the importance of retaining skilled workers. To prevent the disruption caused by losing valuable team members, you should be open to reviewing remuneration packages, particularly for those who may be receiving less than the market rate for their role and experience level. If you’re unsure of typical salary ranges, then take a look through our Salary Guide for a comprehensive overview.

3. Have they put forward a solid case for it?

By the time your employee has plucked up the courage to request a pay rise, they have probably spent some time considering how best to approach this conversation, so it can be incredibly disheartening to be instantly told no. If your direct report presents you with evidence to illustrate the value they add to the team and the instances where they have exceeded the requirements of the original job description, then they may have a solid case for why they deserve an uplift. If so, be sure to listen to their reasons, take their request seriously and advise of next steps, such as you discussing the situation with your boss or other key decision makers.

4. What should you say if their request is denied?

After carefully considering their case and involving all relevant parties, there’s a possibility that the answer may still be no. If so, it’s imperative that you let your employee know your decision tactfully and give solid reasoning – perhaps they still need to hit a few more objectives, or maybe you feel they’re already being paid a fair salary given the market rate. No matter the reason, if a pay rise isn’t on the cards immediately, let your employee know when this conversation can be revisited. And, if you’re concerned that they may start to explore opportunities elsewhere, consider what other benefits you could offer to entice them to stay, such as more flexible working options or financial support for relevant accountancy qualifications. After all, salary likely won’t be the only deciding factor for professionals contemplating leaving a job.

To discover market insights and typical salary bandings for the accountancy and finance industry, take a look at our Salary and Recruiting Trends Guide.