Let’s get real : salary talks have always been awkward. But in times like these – with budgets tighter than ever and approvals getting lost in a sea of “maybe next quarter” – they’re downright stressful.

What do you say when your team’s been working hard, going above and beyond, and they come in with a fair question:

“So… is there a raise coming this year?”

And all you’ve got is… “not right now.”

If that’s your reality – you’re not alone. Plenty of HR folks are navigating the same terrain. But here’s the good news: compensation is important, yes. But it’s not the only lever you’ve got.

So if salary hikes are off the table, here’s what you can do to keep your people engaged – and actually want to stay.

Don’t Tiptoe Around It – Say It Straight

Seriously, don’t sugarcoat. People can smell spin from a mile away.

If you know raises aren’t happening this quarter (or maybe even this year), just say it. Say it like a human, not like a press release. No need to dump the entire financial report in their inbox. Just something like:

“We know everyone’s been putting in a lot. The truth is, salary adjustments are on pause right now due to budget constraints. It’s not ideal. We’re not ignoring it. And we’re going to keep being transparent about what’s happening and why.”

That kind of honesty? It builds trust. Even when the news isn’t what people want to hear.

Think Beyond the Paycheck

Okay – no raise. But what can you offer?

Turns out, a lot. And none of it involves ballooning your budget.

Think about how many people are quietly thinking, “I just want to feel appreciated.”

A handwritten note. A shoutout in a team meeting. Public recognition on Slack or Teams. It’s small stuff – but when done sincerely, it goes a long way.

When people feel seen, they tend to stick around. And it’s not because of money. It’s because someone noticed.

Let Them Stretch, Without Piling On

Here’s a weird truth: some employees leave not because they’re underpaid, but because they’re underchallenged.

Raises or not, people want to grow. If promotions and pay bumps are stalled, give them experiences. Can they lead a project? Mentor someone new? Shadow another department? Learn a new tool?

Of course, it has to be real – not just “extra work.” You’re not sneaking in more output without reward. You’re offering development. There’s a difference.

And the people who are looking to grow? They’ll notice.

Flexibility Is Your Secret Weapon

If you’re going to freeze salaries but still demand a 9-to-6 in-office grind, good luck keeping people.

But if you say:

“You know what? You’ve been killing it – start late on Fridays,” or, “Work from home when you need to. We trust you.”

That’s meaningful. More than a small raise, sometimes.

Let’s be clear – not all flexibility is about remote work. It’s about control. Trust. A little breathing room. The kind of thing people remember.

Ask Before You Assume

This sounds obvious, but here we are: stop guessing what your people care about.

Some want growth. Some want rest. Some want visibility. Some just want you to get out of their way.

If you don’t ask, you’ll offer all the wrong things. So run a quick survey. Have real conversations. Use skip levels. Don’t wait for a problem to bubble up in exit interviews.

Listen now — before people start quietly browsing job boards after hours.

Don’t Burn Out the Loyal Ones

This is a sneaky one – and it happens all the time.

Raises get paused. Teams get lean. The “reliable” folks are asked to do more. And they usually do. Until they can’t anymore.

If someone’s always stepping up, be careful not to over-rely on them. They may not complain. But if they feel used? That’s when they start planning their exit.

Protect their time. Acknowledge the extra load. Rotate responsibilities. And when you can reward them again – do it without hesitation.

Re-Anchor to Meaning, Not Just Metrics

A lot of people stay in their jobs because it aligns with something bigger than the job title.

Maybe they believe in the mission. Maybe they love the team. Maybe they feel like they matter.

That’s what you want to reinforce – especially when you can’t lean on pay.

Remind people of the “why.” Celebrate impact. Connect the dots between their work and the difference it makes. Not in a corny, forced way. Just in a “hey, this matters” kind of way.

Because when work feels meaningful, people are more likely to stay – even when the perks aren’t flowing.

One More Thing : Don’t Forget Who Stuck Around

This one’s easy to miss. You survive the tough quarter. Budgets open up. Suddenly, raises are back on the table – and you’re hiring again.

Great.

But remember the people who were already here. The ones who gave you grace when raises were paused. Who carried the weight without complaint. Who believed in the long-term.

Take care of them first.

Not because you have to. Because they earned it.

Finally

Raises are powerful – no one’s denying that. But they’re not the only thing that holds a team together.

When compensation freezes, your culture is put to the test.

And the question becomes : Do people feel like they matter here? Even without the raise?

If the answer is yes – you’re doing something right.

If not – it’s time to get honest, get creative, and get serious about what makes people stay.