How to Handle Pay Rise Requests as a Manager

In real estate, retaining top talent is just as important as closing the next deal or completing the next project.

From asset managers and surveyors to development specialists and leasing teams, your people are the driving force behind growth and profitability of the business.

It’s no surprise that salary conversations are becoming more common. Employees who have been in the same role for some time, taken on larger portfolios, or delivered measurable results will expect recognition. Often, this will be in the form of a pay rise.

Our Salary, Rewards and Attitudes Report highlights that employees are increasingly benchmarking themselves against industry standards. If your compensation isn’t competitive, they are more likely to look elsewhere, and replacing top talent is both time consuming and disruptive.

So how can you as a manager navigate these conversations properly? Let’s break it down.

Why Pay Rise Conversations Matter in Real Estate

In such a competitive sector, the way you manage these discussions has a direct impact on:

• Retention: Losing a skilled employee mid project can stall progress and cost significantly more to replace.
• Engagement: Professionals who feel underpaid can quickly become disengaged, impacting deal-making, project delivery, and even client relationships.
• Reputation: Real estate is a close-knit industry. A reputation for fair pay and transparency helps attract and retain the best candidates.

Even if you can’t always agree to a raise, handling the conversation well can mean the difference between keeping a motivated, loyal employee or losing them to a competitor.

Steps for Employers: Managing Pay Rise Requests

Choose the Right Setting

If someone in your team asks to discuss salary, schedule a private, dedicated meeting. Avoid giving quick answers on the spot. Instead, give yourself time to prepare and review performance, budgets, and market benchmarks.

Expect the Question

Most employees within real estate know their market value. While industry conversations play a role, Macdonald & Company’s Salary, Rewards & Sentiment Report has become the industry standard for salary benchmarking. Asking for a pay rise is also not unusual – in fact, many managers should anticipate it during reviews.

A well prepared request usually indicates ambition and commitment to their role.

Review Contribution and Results

Link the request back to tangible impact. Consider:

• Have they exceeded expectations?
• Have they taken on extra responsibilities beyond their original role?
• Have they gained accreditations or training that benefit the company?
• Have they delivered measurable results, such as revenue growth, cost savings, or improved efficiency?

Where possible, use data when giving feedback. Real estate is results driven, so quantifying value makes the decision process clearer, both to you and the employee.

Assess Long Term Commitment

Employees who demonstrate loyalty and align their career goals with your company’s mission are strong candidates for investment. If you see them as future leaders, rewarding them now can prevent losing them later to a competitor.

Benchmark Against the Market

The real estate sector is highly competitive, and salary variations exist across geographies, specialisms, and asset classes. For example, a Development Manager in London will command a different package than one in Manchester. Make sure to use salary benchmarking and recruitment partners to ensure your offer is competitive.

Our latest Salary, Rewards and Sentiments Report provides a clear benchmark across regions, functions, and seniority. We also offer bespoke benchmarking reports for a more thorough deep-dive and analysis into remuneration from like-for-like companies.

Be Transparent about Company Context

Sometimes budgets or financial constraints make an immediate pay rise unrealistic. In this case, explain the context clearly, and outline what would need to change for a raise to be possible.

Explore Alternatives to Salary

If budgets restrict you, consider other benefits that matter in real estate roles:

• Flexible working: Work/ life balance is a top priority for 41.3% of real estate professionals globally, with 32% citing flexible location options and nearly 25% highlighting flexible working hours as key factors they value most.
• Professional development: Over 11% globally value personal development and training as a key contributor in their current role, so look into sponsoring training and development as a valuable alternative.
• Performance bonuses: Nearly one in five real estate professionals globally value performance-based rewards. When offering this benefit, tie it directly to measurable outcomes such as the number of deals closed, or key project milestones achieved.
• Equity or profit share schemes: This is particularly attractive in development, investment, or fund management roles and can be considered for senior employees who are not yet eligible.

These alternatives can keep employees engaged even when base salary growth is limited.

Be Clear on Next Steps

Whether you approve the raise, offer alternatives, or explain limitations, always end the conversation with clarity. Outline what the employee can do to work towards a future pay increase and set a timeframe for revisiting the discussion.

For example: “We can’t approve a 10% increase right now, but if you deliver X project successfully and hit your KPIs, we will review again in six months.”

Pay Rise vs Replacing Talent

The cost of replacing a high performing professional in real estate is should be taken into consideration; onboarding, client handover, and project delays can cost more than the pay rise requested.

Our research shows that when people leave roles, it’s not just about salary. Here are some major factors that contribute to employees feeling valued:

Regardless, salary remains a major driver and ignoring it can accelerate turnover.

Best Practice for Real Estate Employers

When it comes to pay rise conversations, managers in the real estate sector should:

1. Come prepared with data: Evaluate performance, market benchmarks, and financial context.
2. Recognise results: Tie contributions to tangible outcomes.
3. Be transparent: If a raise isn’t possible, explain why and define what would need to change.
4. Offer alternatives: Consider bonuses, flexible working, or development opportunities.
5. Think long term: Retaining a strong employee is nearly always more cost effective than replacing them.

Handled well, these discussions aren’t just about pay. They’re an opportunity to build loyalty, boost motivation, and secure the long term success of your business.

To stay competitive and retain top talent, it’s crucial to benchmark salaries and rewards against industry standards while also understanding what real estate professionals truly value.

Our latest Salary, Rewards and Sentiment Report gives you invaluable insight into:

• Up-to-date salary benchmarks across regions and specialisms
• The benefits and incentives they value most beyond just salaries
• How employee sentiment is shifting in today’s market