Last updated: 18th Jul 2024
If you’re one of the many dissatisfied workers in Australia who feel they’re not being fairly compensated for their capabilities, you have two options — find a new, better-paying job or ask for a pay rise.
The Hays Salary Guide 2024-25, based on a survey of 15,000 Australian professionals, finds that 86% of Australian organisations plan to offer pay rises in the year ahead.
The survey also shows the mismatch between what employers plan to offer and what employees feel they deserve has widened. Many want more money and a massive 73% said their pay doesn’t reflect their individual performance.
(Related: How To Write A Great Resignation Letter).
Overcome Your Aversion To Asking For A Raise.
You need to be a squeaky wheel to get paid what you’re owed — and that can be a major barrier for reserved and agreeable personality types, or those with strong self-doubt.
There is considerable evidence that agreeableness is negatively correlated to earning power over time — because asking for money is an uncomfortable situation for people whose instinct is to put others’ needs before their own.
Bias by people making decisions about pay levels and promotions also sets women back. All the more reason to get in the habit of proactively seeking pay hikes.
Remind yourself — this is business, not personal. Think about:
- The fact that you add value that directly generates profit for the business, which in many roles will exceed the cost of your current salary.
- How the team would function without you? Remind yourself of the critical role you play and the difficulty and cost that would be associated with replacing someone of your calibre.
- What are your alternative options? Getting a ‘no’ doesn’t mean you need to leave, but feeling confident you have in-demand skills and could switch jobs may help reduce your fear.
Asking for a raise — even if you’re unsuccessful — helps to position you to get a raise eventually.
No matter how pleasant you are, it shows your boss that you’re looking to move ahead and primes them to take you seriously during future salary negotiations or remuneration planning.
(Related: The Great Resignation: Given Way To The Big Stay?)
Negotiating A Pay Rise In Three Steps.
Once you’ve talked yourself into asking for a pay rise, follow these negotiation tips for the best results:
1. Prepare Beforehand To Get A Raise.
Before you approach your manager, arm yourself with information that will help you stay calm and confident as you ask for a pay rise. You should:
- Compare the responsibilities listed in your job description to your actual work—take note of where you’ve acquired extra responsibilities, or consistently acted outside the role’s scope.
- Review your progress towards goals, whether they’re individual or team ones, to see how well you’re tracking, where you’ve exceeded targets and how you’ve improved the company.
- Research the labour market by reading industry reports, talking to colleagues, or looking at job ads to better understand what similar employees with your experience and skills are worth.
- Establish a clear number for the amount you want your salary to increase by, which could be a particular sum, or a percentage of your current rate.
- Rehearse your pitch so you can get over the feeling of being a braggart and have practice in clearly expressing your increased salary expectations.
2. How To Negotiate Your Pay Rise During The Meeting.
Make an appointment with your boss so you can have their uninterrupted attention in a private location. During the meeting:
- Start by affirming your commitment your job, and your desire to grow and develop with the company over the long-term.
- Make your case, for example by highlighting how your contributions go above and beyond or explaining that your research shows you’re underpaid compared to your peers.
- Say you’d like to be compensated accordingly, and state the number you think you deserve. Use your job market research as a guide, but be realistic about the size of the bump.
- If your boss rejects a raise outright, turn the conversation towards the timeline for when a raise could be approved or performance changes that would merit a future raise.
Expert Tip.
As well as powerfully explaining what you’ve already done to add value to your team or company, touch on your potential and hunger to grow with the organisation.
3. Follow Up About Your Raise.
Whether you get a yes, no or a maybe, ensure that you follow up.
- Within days of your initial chat, you could email your manager to outline your understanding of the potential ‘path’ to a raise, and ask for clarification on next steps.
- Perhaps your manager’s feedback was “not now”. If they said it depends on the new budget in three months’ time, book a meeting with them after three months have passed.
- If you received advice about specific behaviours or outputs that would warrant a pay rise—put in the effort to meet your manager’s expectations. Then ask again.
Worried About Job Security? Don’t Reach Too Far.
Concern about how you’ll be perceived by bosses for asking for more money can be valid if you approach the pay rise conversation carelessly.
You risk torpedoing your career by asking:
- Too often: High performers might be able to get away with more regular requests for a pay rise, but for most people, it makes sense to ask no more than once every 12-18 months.
- For too much: You need to consider your market value in the context of the size and profitability of your employer, who needs to balance staff costs with remaining competitive.
- At the wrong time: Consider a company’s financial position, when it sets budgets, and the broader economy. Asking during a downturn, or a startup’s growth phase, may be unrealistic.
Expert Tip.
You don’t need to wait until an annual performance review to ask for a pay rise. Initiate the conversation when you’ve got an undeniable argument for why you deserve it — such as at the completion of a highly profitable project.
Should You Leverage An External Job Offer For A Raise?
Threatening to take another job unless you get a pay rise — based on an outside offer from a recruiter or head hunter — is a risky, bad-faith move.
(Related: Guide To Dealing With Conflict In The Workplace)
It brings your loyalty into question, and there’s always the chance that your employer will encourage you to leave.
That puts you in the position of needing to accept the offer — and all the stress of moving jobs — when what you really wanted was a pay rise.
Did You Know?
Counteroffers are generally seen by employers as a temporary fix to delay hiring costs. Recent research by recruitment firm Robert Half involving 500 Australian hiring managers found 80% don’t agree that counteroffers are a good way to retain employees long-term.
Here’s what you can do to improve your current situation if you’ve received an outside offer:
- Use it to start a conversation about your future. Firstly, make it clear that you’re committed to staying at the company but you’ve had offer/s higher than your current package, and you’d appreciate your manager’s view on your prospects within the company.
- Use it to benchmark your value in the market. You can mention your earning potential during performance conversations to demonstrate your value and give your manager more information they can use to make a case for compensation changes to their higher ups.
A boss that truly values you, and wants to retain you long-term will walk away from these kinds of conversations with the goal of helping you develop, get opportunities, be recognised, get promoted or get paid more in future.
Are You Entitled To A Regular Pay Increase?
It’s rare for employment contracts to include an obligation to increase your pay, but there may be certain conditions related to salary reviews and bonuses.
As well as checking your contract, you should review the company’s policies for more information on how compensation decisions are made.
Did You Know?
Pay secrecy — clauses in employment contracts preventing employees from talking to colleagues about how much they’re paid and their work conditions — was banned by the Albanese Government’s Secure Jobs, Better Pay bill which came into effect in 2022.
If you work in an industry covered by an award, you’re entitled to minimum rates of pay and may also be guaranteed minimum annual pay increases. You should check your award or speak to your union to learn more.
The Fair Work Commission also conducts annual wage reviews to set the amount for the national minimum wage and award minimum wages—which can lead to an increase in your pay.
Get What You’re Worth.
It’s easier to win in pay rise negotiations when you:
- Objectively evaluate your own worth, believe strongly in the positive contribution you make to the company, and provide solid reasoning to your employer.
- Boldly state the salary you want and be ready to calmly challenge any push-back from your manager about whether you deserve a pay raise.
You don’t need a personality transplant to ask for a pay rise. Prepare, research the market, know your worth, and treat the discussion like a business deal you’re closing for your company—they win by retaining you as a happy, fairly-paid employee.
Jody
One thought on “11 Times In Your Life You Should Update Your Resume”