Performance and salary review: how they differ and how to prepare for success

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Performance and salary reviews

What is a performance review?
What’s a salary review?
Good performance doesn't equal a salary increase
When should I ask for a salary review?
What if I don’t get a raise?

Your performance review may not always lead to a salary increase. In fact, it’s important to remember that these are often two separate conversations. Our recruitment experts share the difference between performance and salary review meetings and how to prepare for both to increase your chances of a positive outcome.

The performance review process is designed to assess and explore your professional strengths, weaknesses, progress, and goals. It's a discussion between your manager and yourself to support your professional development.

Performance reviews can occur every month, quarter, or six months and act as a space for you and your manager to discuss your role and career path. They usually last between 30 minutes to an hour, depending on the amount of information and feedback shared.

You can use your performance reviews to evaluate your assigned KPIs, targets, and goals using the data and metrics you've collected. It also gives you a chance to share which aspects of your role you enjoy, where you'd like to expand your skills and any challenges you've come up against since your last meeting.

As the name suggests, a salary review is an opportunity for you and your manager to review your salary in relation to your professional value and achievements in your role to date. Review of salary meetings can be included as part of a performance review, or you can use your performance review to request one.

Your salary review will include an assessment of your professional performance since your last pay increase (or since you joined the company if you're new). To determine whether you're due a salary increase, your manager will assess your current pay in relation to your role, experience level, and the salary benchmark in your industry and region.

Even if there is firm assurance that your six-month performance review is linked to a salary review, it doesn't guarantee that your employer will agree to a pay rise when the time comes. For example, an average performance may not be enough to start a salary negotiation — it's unlikely your manager will want to pay more for simply meeting the job requirements.

Your first six months (and potentially up to 12 months) in any new role can involve a lot of training, such as new systems and processes and building relationships with key stakeholders. This can sometimes mean that the total potential value your employer expects from you may take some time to come to fruition.

For an employer to see the benefit of increasing your salary, the performance review should demonstrate how you deliver above the expected value to the business. And that means above average or exceptional performance. Our experts suggest using your performance review to showcase your professional value so that you’ll have excellent grounds for a potential salary increase. Come prepared with tangible examples of KPI achievements, such as data or figures that support your success. It's also worth highlighting any training or upskilling you've done to close skills gaps in your team, especially where AI and digital skills are concerned. Our research shows that 46% of employers are increasing salaries to remain competitive in talent retention. If you're equipped with your industry's most in-demand skills, your employer may offer a financial incentive to retain you amid the war for talent.

Things to prepare ahead of your performance review:

List of accomplishments (preferably achieved since your last review)

Goals you’d like to achieve between now and your next review

A list of the new skills or qualifications you’ve achieved

Salary benchmarking data for your role

Feedback from peers

A performance review may be a good place to initiate a discussion for a higher salary or to propose a salary review (as long as you're confident that your performance was exemplary and not 'average'!).

But, when you have the meeting, it will be up to you to make the case. Our experts recommend referring to the success metrics you used in your performance review. It's a good idea to back that up with any positive feedback you received during that meeting.

We also recommend familiarising yourself with salary benchmarks for your role, experience level, and region using the Robert Half Salary Calculator or data from our 2025 Salary Guide. This will give you a grounded and realistic approach to salary increases and provide impartial benchmarking to support your request.

Phil Boden, Practice Director at Robert Half UK, says, “It is recommended for employees to familiarise themselves with pay bands within their region before they have a pay negotiation meeting. As per our Salary Guide, London region salaries are 22% on top of national averages, whereas Scotland is 9%, for example. That being said, each case is different and there is more to a person’s ability to command a certain level of remuneration, usually boiling down to their skills, qualifications and experience besides where they are located.”

Even if your employer agrees with your case, they still may be unable to give you what you're asking for—according to data from the 2025 Salary Guide, 22% of employers said they couldn’t make further salary increases over the next 12 months. It's often an ongoing conversation, and it's important to stay open-minded and ready to take on suggestions and critiques.

You may be able to negotiate additional, non-financial perks and rewards under your remuneration package in situations where your employer can’t afford a salary increase for exemplary performance. According to insights collected for the Salary Guide, some of the most common benefits and perks being offered to workers are the use of a company car (40%), home and office equipment allowances (30%), and commuting discounts (32%).

There’s also nothing wrong with exploring the job market to see if you can find a similar position which offers the salary you’re looking for. Knowing your options is helpful, and there’s no harm in applying for a new role while still employed. You might also find it beneficial to reach out to a recruiter who specialises in your industry to ensure you always have an informed ally in the market, keeping you in mind for ‘good fit’ opportunities.

To learn more about salaries in your industry, download your free copy of the Robert Half 2025 Salary Guide or explore the Salary Calculator. Visit the insights blog for more tips and advice on performance review success and negotiating a pay increase.

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