To address the delicate subject of salaries, I present four perspectives: a societal one, one for the company, one for each of us, and one for the manager. Every manager, on such a delicate subject, must understand these different perspectives to make conscious choices and thus be able to share them better.
The societal perspective:
From collecting taxes to saving lives, from baking bread to designing an airplane, from teaching a child to caring for a patient, we all have a task that brings value to society. And so, a salary reflects the value we generate for society. Whether this organization is public or private makes no difference.
So yes, some companies or functions have salary gaps that are difficult to rationalize or explain. This belongs to the political domain, and everyone must conduct their own reflection and make their own choices to influence this world.
We are in a world of growth; salary increases raise the costs of everything and therefore contribute to inflation. One avenue for reflection: if our productivity increases, the value we generate increases, and therefore remuneration can follow without contributing to inflation.
The company’s perspective:
We live in a world of competition, and each of us contributes to this through our purchases. Most of us will seek the best deal, aiming to get the best product at the best price. And so, our world is organized around this model.
Your company wants to gain market share and grow. To simplify, the company must have good margins to be attractive to banks and shareholders for its future loans to develop and sustain its activities. It is therefore necessary to control its costs, and a significant portion remains salaries. So, the management team makes trade-offs between investments, supplier costs, and internal costs (salaries, travel, training, ratio between production team and transversal support team, etc.).
More and more companies understand that their value lies in their employees; this fundamental shift is slow to perceive and unfolds gradually. With this movement comes increased attention to all components of attractiveness; salary is one aspect, but it is not the only one! Consider Maslow’s pyramid.
Of course, the minimum wage must cover essential needs. But once this threshold is reached, other aspirations take over — and they are just as, if not more, important for your employees. Recognition, support, development opportunities, a safe work environment, stimulating projects… There are numerous levers to activate for your organization to fully meet the expectations of those who make it thrive.
The employee’s perspective:
In our personal and professional lives, we all aspire for what we give to be recognized. Being able to anticipate a salary raise next year would not just be pleasant — it would be a recognition. This need is real, sincere, and shared by many. It’s not just about money, but sometimes about dignity, stability, or the feeling that our efforts matter. It happens that the received increase does not meet expectations, and this can lead to disappointment.
We look at inflation and the cost of living, wondering if our purchasing power is keeping pace. Because ultimately, what we are looking for is a slightly more serene life.
We discuss with our loved ones, our colleagues, and our friends. We compare, sometimes unintentionally, and this can create a silent but very real pressure. This pressure does not come from a whim, but from a need for justice and balance. Of course, each position is different.
Whether one is on the front line, in services or operations, in the public or private sector, the room for manoeuvre varies. But whatever the situation, the manager must maintain an open, benevolent dialogue.
The manager’s perspective:
This is one of your most sensitive and delicate duties to fulfill. You have a limited playing field and work with a closed envelope. You have more or less autonomy in the decision. Three key elements to consider:
- Equity
- Medium to long-term projection
- Recognition and encouragement for the coming year
Equity:
Regardless of your budget, you have a responsibility to act with fairness. If salary disparities exist within your team, it’s up to you to address them with discernment and courage. In the past, I’ve secured specific salary increase budgets to correct unfair situations. Inequalities don’t always go in the same direction. Sometimes, specific individuals receive higher compensation than their colleagues without their performance or potential fully justifying it. It’s not possible to decrease a salary without entering a formal disciplinary framework. However, you can slow down the progression of certain remunerations and favor a more significant revaluation for others, to rebalance the gaps progressively and sustainably. These adjustments can take several years and require consistency.
You also have complementary levers to value underpaid employees: allocation of high-visibility projects, access to strategic training, or targeted distribution of bonuses. The essential thing is that your group clearly perceives that your decisions are guided by a concern for equity and made in the collective interest.
Equity, yes, but also performance:
This is also an opportunity to demonstrate managerial courage. It is tempting, when faced with a limited budget, to apply a uniform formula and grant everyone a minimal increase. You will get everyone equally disappointed. However, even in difficult times, it is possible — and desirable — to reward those who stand out, while adjusting downwards the recognition of those whose contribution or attitude has not been up to par. Just be careful: this approach requires transparency and respect. A significant decrease should never be a surprise for the employee concerned. The reasons that could lead to this decision must have been clearly explained to them beforehand, so that they had the opportunity to react, adjust, and progress. This is how we combine demanding standards, equity, and respect for the individual.
Medium to long-term projection:
Let’s take a moment to look at a complete career. Example: in my past, in product design, here is a classic tier grid, with 6 promotion tiers:
- Draftsperson, small studies:
- Draftsperson level I
- Draftsperson level II
- Designer level I
- Designer level II
- Designer level III
The level of responsibility increases at each tier, and therefore, the overall value generated. Depending on the level of education, entry into the position can be at different levels. Each level of responsibility has an associated salary range, and there is a standard time to move from one tier to another.
A career lasts almost 40 years. So a high-performing individual will reach the top of all 6 levels in 15 to 20 years. It means you’ll have little room to increase their salary after this rapid growth. Therefore, if you have this type of high-potential person in your team, you will need to work with human resources to see how you can break through this glass ceiling. (Internal or external training, lateral mobility into another profession). If you don’t consider this from the moment they reach level 3, you will create a problem for their future manager.
If you offer a fast-track career, this growth cannot run out of steam; otherwise, you risk losing that person after 15-20 years with you. Managing rapid growth forces you to very quickly imagine how not to lose them later on.
Recognition and encouragement for the coming year:
You have a global budget envelope and generally a guideline. The higher a person is in their salary range, the more the proposed percentage increase tends to be reduced. For example, if the increase for a person who fully meets expectations is 3% when they are in the middle of their range, those at the beginning of the range could receive an increase of 3.5% to 4%, while those at the top of the range would see an increase of between 2% and 2.5%. Explain this mechanism to your employees. And the question you need to ask yourself: If they are at the top of their range, what is preventing promotion?
- Are they working at their full potential, and is there no more possible promotion?
- Are they ready? If not, ask them to do their self-assessment to reach the next level; this will be instructive in terms of their self-awareness. Salary increases are appreciated by most, but it is important to note that not everyone necessarily wants to take on the additional responsibilities associated with a promotion.
- Do we have an open position, or can we, on a new project, broaden the scope of responsibility and thus meet a business need and help the employee grow? Because the company has a structure, and to fulfill its missions, it needs personnel at all levels.
None of the potential situations above are inherently good or bad. They require transparency, honesty, and authenticity to share your evaluation and the facts associated with it, ensuring everyone is on the same page.
Conclusion:
As a manager, you therefore find yourself at the center of three spheres of influence:
- 🌍 Society and the economy: inflation and growth.
- 🏢 The company and its employees: with engaged collaborators and profitability to ensure.
- 👤 Each individual: with a long-term career trajectory and short-term salary expectations.
Your values and experiences superimpose filters that make this reading of influences more complex and can therefore generate biases. This is why this exercise is carried out in full collaboration with human resources. Regardless of your ability to increase salaries, the approach you take during the year, along with your transparency and sincerity, will significantly impact your employees’ sense of being heard and understood. This, in turn, will have a ripple effect on the attractiveness of your group.
iscover others?
🛠️ Three simple actions to manage salary increases
Clearly explain how salary ranges work
In five minutes, clarify:
where the employee sits within their range,
why increases vary depending on that position,
–what enables (or prevents) a promotion.
This transparency reduces silent comparisons and misunderstandings.
Gradually correct equity gaps
And use non‑financial levers (high‑visibility projects, training opportunities, targeted bonuses).
The goal: show that recognition can take different forms.
Anticipate fast‑track careers at the earliest signs
For high‑potential employees:
discuss possible ceilings early,
explore options (mobility, training, role expansion),
involve HR before the ceiling becomes a wall.
This helps prevent losing talent after 15–20 years of accelerated growth.
👉 These three simple actions strengthen your leadership posture and unlock your potential.
Coaching or Mentoring: Your Choice, Your Growth
I’m Franck Dervault, drawing on years of professional experience and now advancing toward certification as a coach. I offer two distinct paths:
- Coaching to help you unlock your own potential through reflection, presence, and guided discovery.
- Mentoring to share lessons, strategies, and insights from my career so you can navigate challenges with confidence.
Whichever path you choose, my goal is the same: to help you realize that you are wiser than you think, with immense potential waiting to be unlocked.
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