Asking For a Pay Rise
Written by Lawson Delaney
Negotiating a pay rise is a daunting task. Salaries are one of the largest financial investments for many businesses and preparation is key to ensure you get the right outcome from your salary review. Here is all the information you need to step up your negotiation game and get that pay rise.
Preparation
As you would for an interview, you need to prepare and practice for the negotiation. You can’t expect to influence your manager in a financial conversation without being informed and doing your research, proving that you have earned the right to earn more.
Have you recently been taking on more responsibility within your role or delivered results or projects that are outside the basic confines of your position? Any extra contributions you have made to the business should be highlighted in this conversation as part of your business case.
Doing a little market research will also be helpful during this conversation. Talking to friends in similar positions, checking out salary surveys and talking to recruiters will give you a good idea as to where you stand salary wise.
You also need to understand exactly what your goal is prior to starting the conversation. Are you just asking for a pay rise or could being offered other benefits be of interest as an alternative such as flexible work arrangements or study support?
Timing is key
Timing is everything when asking for a pay rise. Your company might have a set structure when awarding pay increases – know your policies prior to the meeting so that you go in armed with the facts.
Other factors to consider are if profits have been low or if new staff have recently been added to the team. Factors such as these will impact a business’s ability to commit to a pay rise.
What are you worth?
Before starting a conversation about a pay rise, knowing the difference between needing and deserving should be understood. If you have been feeling under pressure or frustrated at work, attitudes of “I am worth more” might develop. Although you may be right, if you are not happy at work finding a new job could be the better solution, not a fight for more money.
Even if you negotiate yourself a pay rise, if you were motivated by unresolved frustrations you are likely to end up leaving anyway as money was not your only issue.
The verdict
No matter how prepared you are and how strong a case you present, the answer might still be no. Although this is a disheartening end to the conversation, it is essential to remain positive. End the conversation by asking your manager “what is your advice to help deliver a favourable outcome for next time”?.
The response is valuable feedback and will help you improve your performance next time. A “no” doesn’t necessarily mean “not ever”.
Lawson Delaney is a leading executive search and professional recruitment firm based in Melbourne. We specialise in recruiting CEOs and leadership teams, and accountants of all seniorities for Accounting firms. Contact us on 03 9946 7300 or support@lawsondelaney.com.au to learn more about how we can assist you with a vacancy or new role today.
Written by Lawson Delaney