How to Navigate Pay Rise Conversations with Your Team

Let’s face it—there’s nothing quite like the awkward tension of a team member walking into your office and asking for a pay rise.

If you’ve felt the wave of panic, frustration, or uncertainty flood in when someone says, "I’d like to be earning $10,000 more next year," you’re not alone. But what if you could turn that potentially uncomfortable conversation into a genuine win-win?

Let’s explore how.

The Context: Why Pay Rise Requests Are on the Rise

In 2023, we faced a tough recruitment climate in healthcare. Whether you’re a physio, EP, speechie, OT, or psych clinic owner, you’ve probably seen firsthand how difficult it’s become to attract great team members. Seek is flooded with thousands of job ads, and demand still far outweighs supply in many sectors—especially with NDIS and other government-backed services fuelling demand.

So naturally, clinicians have more leverage. Some may be tempted by offers just down the road offering an extra $5K or $10K. And as a business owner, that can be confronting. If everyone wants a bigger slice of the pie, what’s left for the business?

And yet… this is a golden opportunity to step up as a leader.

When a Team Member Asks for a Pay Rise

Let’s say a team member says:
"Hey Pete, I’d like to go from $90K to $100K."

What do you say?

Before you go into defence mode or start listing off unmet KPIs in your head, pause. Remember:

• They came to you, rather than quietly resigning for a $100/week bump.

• They’re open to dialogue.

• This is a chance to strengthen your relationship, not weaken it.

Step 1: Say “Thank You”

Start with gratitude. It takes courage to raise a pay discussion. Many avoid it altogether—so the fact that they brought it up means they’re invested. They want to stay and see if you can create a plan together.

Step 2: Don’t Decide On the Spot

You don’t have to solve it there and then. Try something like:

“Thanks for bringing this up. Yes, I think that’s achievable. Is it okay if I take some time to create a plan so we can look at how to make it happen together?”

This gives you space to reflect, crunch the numbers, and get advice if needed. It also shows them you’re taking their request seriously.

Step 3: Focus on Value, Not Just Numbers

A pay increase should always be linked to value creation—not tenure, emotion, or entitlement.

We often say:

You get paid in proportion to the value you bring to your clients, your team, and the business.

So, what would more value look like?

If you’re a physio, like me, maybe it’s:

• Mentoring junior clinicians (2 hrs/week)

• Running workshops or community outreach

• Boosting referrals or managing social media content

• Contributing to systems development or team culture

Now you’re talking about impact, not just income.

Step 4: Set KPIs and Timeframes

Let’s say the $10K increase is on the table. You might agree to a 6-month pathway, with clear performance indicators—clinical or non-clinical—that they need to meet to unlock that pay rise.

Key tips:

• Set monthly check-ins to track progress

• Be clear on what success looks like

• Document the plan so you’re both aligned

We call these Clinical Excellence Indicators, but they can just as easily be admin or leadership-focused metrics.

Step 5: Make It Win-Win

Here’s the most important part:

No one wins if only one side walks away happy.

If you squeeze every last dollar out of the negotiation and walk away feeling like the world’s best dealmaker, you might lose something more important: trust.

Your team member may not come back next time—they’ll go somewhere else.

So instead:

• Leave a little on the table

• Make it feel like a partnership

• Focus on long-term relationships, not short-term wins

Final Thoughts

Pay rise conversations are coming thick and fast in 2024. Be ready.

The best leaders are not the ones who shut down hard conversations—they’re the ones who lean in with curiosity, clarity, and compassion.

So the next time a team member comes to you with a number in mind, remember:

• Say thank you

• Buy yourself time

• Focus on value

• Create a plan

• Check in regularly

• Make it win-win

You’ll not only retain great people—you’ll build a team culture that thrives on openness and mutual respect.