Who this checklist is for
This pay raise checklist is for owners, partners and managers who get asked "can we talk about my salary?" and want to answer well. It works the same for a shop, a clinic, an agency, a factory or a distributor. The usual mistake is a quick yes in the moment, to keep a good person happy. Then the real yearly cost turns out higher than expected, others in the team hear about it, and nobody wrote down what the new pay was for.
Use it the day someone asks, before you give an answer. The first items take minutes and buy you time to think. The later ones make sure the raise is fair, affordable, in writing and tied to clear goals. If the answer is no and they decide to leave, our employee exit checklist helps you keep everything you need.
The 15 things to check, and why each one matters
Never agree instantly
Thank them, say you will reply by a set day such as Friday, and keep that promise. A yes in the moment is hard to take back, and a fixed date shows you are taking it seriously.
Ask why now
Ask what made them raise it this week. Another offer, a rise in living costs or a feeling of being overlooked each need a different answer.
Check their results
List what they actually delivered this year: sales, jobs done, customers kept, problems fixed. Pay for results, not for hours or effort alone.
Check the market rate
Look at three current job ads for the same role in your area. It tells you if they are underpaid, fairly paid or already above the market.
Full yearly cost
Work out the raise for a full year, then add what goes with it: payroll taxes, PF or 401k contributions, bonus and overtime linked to salary. The real cost is higher than the monthly figure.
Ask what they want
Ask what else would matter to them: a new title, flexible hours, training or a clear path to the next role. Sometimes these matter as much as money.
Check team fairness
Compare their pay with others in the same or similar roles. A raise that leaves two people in the same job far apart will come up later.
Fits the budget
Check the pay budget for next year before you agree, including raises others will expect at review time. One yes should not use up everyone else's room.
Raise or promotion
Decide which one it is. A raise is more pay for the same job. A promotion is a bigger job with more pay. Mixing the two leaves everyone unsure what changed.
New goals in writing
Write down three goals the new pay should deliver over the next six months. It turns the raise into an agreement, not just a cost.
Tie it to reviews
Give raises at a set review time each year, not whenever someone asks. It is fairer to quieter staff and easier to plan for.
Plan the next ask
Decide now what you will say when the next person asks, because once one raise is given, others often follow. A clear rule saves awkward talks.
Confirm in writing
Send a short letter or email with the new amount, the start date and the goals agreed. It avoids "I thought you said" months later.
Tell payroll the date
Send accounts the new pay and the month it starts, so the first payslip is right and nobody has to chase arrears.
Review in 6 months
Book a check-in in your calendar six months out to see if the goals are being met. It keeps the conversation going before the next raise request.
Questions about pay raises
What should I say when an employee asks for a raise?
How do I work out what a raise really costs?
Is it better to give raises only at review time?
Still working out salaries and payroll changes in a spreadsheet?
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