This article aims to help employees understand what they need to consider when asking for a pay rise. It focuses on value exchange, market awareness, and timing in the context of Australia’s evolving economic landscape.
Understand your worth in the market
Senior Consultant, Rio-Jane Porter, works closely with both clients and candidates at Moir Group to help them understand their market value. “I advise them to utilise salary guides, industry benchmarking, and insights from their networks to gauge what they should be paying or likewise, earning, in a comparable role,” she explained.
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Discussions around salary have changed significantly for both employees and employers as the cost of living in Australia continues to rise. Many workers are finding themselves in a challenging position where inflation and economic pressures outweigh the pay increases they have received. Then there is the rise of AI, supply chain disruptions, and housing availability, which are also reshaping industries and adding complexity to conservations around pay.
10 practical tips for discussing a pay rise
Confidence is crucial when discussing your worth. Approach the conversation calmly and openly, ready to listen as well as advocate for yourself. It’s a two-way street that can benefit both you and your employer.
– Senior Consultant, Rio-Jane Porter
- Have confidence: If you are doing a good job, it’s important to back yourself. All too often, people question whether they are doing enough to warrant a pay rise. However, remember that it’s not about significantly over-performing in your role, it’s about doing what is expected of you and doing it well.
- Show courage: Starting a conversation with your boss about salary can be daunting. It vital to push yourself beyond the fear though. Do it in a positive, non-threatening way and definitely make the request face-to-face and with your direct boss, rather than someone from Human Resources.
- Be prepared and well-researched: Gather relevant industry and market information to support your case. Be ready with points of reference to demonstrate how your request aligns with broader trends.
- Be clear and concise: Justify your request with clear, succinct reasoning. Frame your case as a fair exchange of value, ensuring that your contributions are linked to the business’s goals and success.
- Choose the right timing: Consider the timing of your request. Are there more favourable times during the business cycle or financial year to have this discussion?
- Arrange a formal meeting: Set up a formal meeting to discuss your pay rise. This could be during a performance review or another business setting where you can have an uninterrupted conversation.
- Stay calm and open-minded: Approach the discussion with a calm and open mind. Remember to listen actively and engage in a two-way conversation, rather than solely focusing on your agenda.
- Take control: It’s important to remember that you are in the driving seat of your career. You need to control the conversation about salary and drive it. If you leave it to other people, you may end up frustrated and dissatisfied.
- Agree on response time: Make sure you get your boss to agree on a clear response time. Don’t let time drift once you have done the hard part!
- Have a plan B: Be mentally prepared for all possible outcomes. Have a plan B in place if your request is not accommodated.
The value exchange — What are you and your employer bringing to the table?
If you are consistently going above and beyond in your role, your company is likely to recognise and reward your efforts. Asking for a raise though when you are only meeting the minimum expectations may not yield the results you want. It’s about delivering value and being proactive.
Ultimately, if your company can see that you are stepping up for new challenges, they will reward you for it. Stephen added, “It’s a value exchange at the end of the day. If you are doing the minimal and asking for a pay rise, you are looking at it the wrong way. You have to do your job well, go the extra yard and then you should expect your company to look after you”.
Your company’s culture and leadership
If you feel that your current salary does not match your contribution, it’s vital to consider your company’s culture and leadership. Most organisations that have a good culture and strong leadership want to treat their employees fairly and pay them fairly. As Director Stephen Moir wisely noted, “You don’t want to be focussed purely on the salary. You have got to have the right culture and inspiring leadership at the top of your priority list. Getting good remuneration will come from these factors.”
Before making any rash decisions, it’s essential to consider the bigger picture. The key to negotiating a salary increase lies in understanding the value exchange between you and your employer. While money is important, the long-term success of your career may depend just as much on finding a workplace with the right leadership, culture, and growth opportunities.
When a pay rise is not possible
If the outcome is not as you hoped, don’t despair. Keep in mind the long-term goal and ask if you can set a timeframe for the next review, perhaps 6 months rather than a year, and the targets you need to meet in order to be successful. You need to be clear with your boss that you want to keep progressing in your career.
Sometimes good companies are just not able to offer you a meaningful pay rise, even if they would like to. It is also important to remember that different sectors are impacted differently. For example, companies in consumer discretionary and commercial property sectors are navigating tough times, struggling to retain staff and keep operations afloat. On the other hand, many organisations are undergoing transitions as skill requirements shift.
In this situation, you may want to think outside the box about other ways you could negotiate as ‘added value’. This could be a short-term bonus for completing a project or flexible working arrangements like extra vacation or shorter hours. It could even be company support for courses or time off for board duties. Consider what’s important to you and what would add to your feeling of satisfaction within your job.
Final words
As Stephen Moir says, “If you’re making a move based on money alone, you are making a bad decision. Remuneration should be the happy outcome of a good decision and, as we have said, great leadership and culture will hold you in good stead for a satisfying job and a fulfilling life”.
If you would like further support, information, or resources on this topic, please contact us.
If you have any recruitment needs in your team on a permanent or a temporary basis we would be delighted to assist.
Moir Group is a specialist finance, accounting and ESG recruitment company. We cover temporary and permanent roles from Assistant Accountant to CFO level. We also recruit Sustainability / ESG Manager roles to Chief Sustainability Officer roles across all industry sectors.
