February 18, 2025

How to handle employee pay raise requests

11 minutes

Despite your best efforts to develop a competitive compensation program, there may be times, such as when inflation is elevated or during a tight labor market, that employees increasingly try to negotiate their pay. Listen in as we cover some steps to help employers prepare for and manage pay raise requests:

[00:46] Understanding applicable laws

[02:40] Having a compensation philosophy and being open about pay practices

[03:44] Knowing the market and competitors

[05:27] Conducting employee "stay" and exit interviews

[06:28] Evaluating a pay raise request

[07:45] Communicating with the employee

[09:25] Considering options beyond raises

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.

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