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The Complete Guide: How To Ask for a Pay Rise
- February 13, 2023
At some point during your career, you'll probably need to ask for a pay rise. Whether it’s due to the rising cost of living or you simply feel underpaid, asking for more money is sometimes necessary. But asking for a salary increase is not easy. From doubts about your worth to pre-meeting nerves, negotiating a pay rise takes time and planning to pull off successfully. To help you secure a higher salary and get paid your true worth, we've put together a pay rise guide below. It contains everything you need to know and some essential tips that will increase your chance of success.
What is a negotiated pay rise?
First off, it's important to make a distinction between a negotiated pay rise and a yearly pay increase. Most employers increase employee salaries by 3-5% per year. Employers give this salary bump in order to ensure employee wages keep up with inflation and retain talent within a company.
This is not legally required though, and not everyone gets an annual pay rise. Here, the likelihood of an annual pay rise depends mainly on how long you've been with the company.
A negotiated pay rise, on the other hand, is something you request yourself from the company. They are not given without you asking for them and can boost your salary considerably.
Ask for a pay rise if you feel undervalued
You should ask for a pay rise if you believe you're current salary is not enough for the work you do. If you think you're not paid enough for your time, skills, and contribution to a company, ask for more money. The truth is most of us undervalue our worth to a company.
In fact, research shows that we significantly underestimate what people are paid in similar jobs. Add in the fact that most of us are reluctant to discuss our salary with colleagues, and there are scores of people working for less than they're worth.
Asking for a pay rise won’t get you fired
Don't worry about getting fired, either. Employers can't dismiss you for asking for a pay rise. While negotiating a pay rise may be nerve-wracking, you shouldn't let such fears put you off.
Whether successful or not, you shouldn't experience any pushback. Employment laws are clear on the issue: employers can't punish employees for asking for a pay rise.
Signs you deserve a pay rise
Fortunately, there are some tell-tale signs that it's time for a pay rise. These relate to seniority, time with the company, and your performance in your role:
• Similar jobs pay more: Take a look at job boards and websites and look for similar roles to your own. Try to identify like-for-like positions and write down the salaries other companies are offering.If it looks like your employer is offering a similar salary, consider the other signs below.
• Your job role has changed: After changing roles or receiving a promotion, you may find you have more responsibilities. If your salary has not changed or you feel it is inadequate, it is time to negotiate your salary.
• You go beyond your job requirements: Pay raises are most often awarded to those with a record for high performance. If you feel you go above and beyond the requirements of your role, you almost definitely deserve a pay rise.
• You save the company money: If you've found a way to save your company a lot of money, you may be in an excellent position to negotiate a pay rise. Employers value those who find cost savings, and they may see you as a valuable asset.
• You’ve upskilled: You may also be in line for a pay rise if you've gained new qualifications and skills since starting your role. These may enhance your ability to do your job and make you a more valuable employee.
• You’ve demonstrated loyalty: While time served at a company is not the be-all and end-all, it certainly goes a long way to securing a higher salary. Demonstrating loyalty by sticking with a company and maybe even rejecting other job offers can put you in good stead.
• You’ve increased profits: Companies love employees who make them more money. If you think your efforts have significantly increased your company's profits, then it's fair to ask for more money.
When's the right time to ask for a pay rise?
If you've decided you're in need of a pay rise, it's essential to time your request wisely. When asking for a pay rise, good timing can mean the difference between a successful negotiation and a failed one.
Consider the following points in your career for the most success:
Before accepting a position: After you're offered a job, it's not inappropriate to negotiate salary. This is especially the case if you think you're overqualified or the pay is not market competitive.
Promotions or change of roles: Whenever your position in the company changes, you should look at your salary. Roles with more responsibility and different requirements may mean you need to be paid more.
Performance reviews: Those already employed may want to wait for their regular performance appraisal to bring up pay. Bosses expect the topic to come up, and it won't catch them off, guard. You also won’t need to request a meeting, something many people dislike.
After significant achievements: It can be a good idea to ask for a pay rise after landing a big contract or successfully completing a large project. At times like these, you have proven your worth and value to the company.
Company successes: You are far more likely to get a pay rise if your company is doing well. Look out for record earnings, large acquisitions, and increased hiring.
How much to ask for (pay rise)
Ask yourself what you believe you are worth to the company. It’s not unusual for employees to ask for anywhere between a 10-20% pay rise.
At the very least, the amount you ask for should bring your salary in line with the current market rate. Do your research and figure out exactly what other companies are paying people to do what you do.
Preferably, create a spreadsheet with individual columns for the company, role title, requirements, hours, and salary. Tally things up and work out an average pay for roles similar to your own.
Factor in any additional roles and responsibilities you bring to the table. If you're fulfilling your job description and more, estimate what you think this contribution is worth.
Who to ask for a pay rise
You should negotiate a pay rise with your line manager. As your immediate senior, they are ultimately responsible for handling your request. In larger companies, they will then pass this on to a pay review board. They will then discuss your salary with your line manager, and you will need to argue your case.
Resist going over the head of your boss and requesting a pay rise from more senior company members. This undermines your boss' authority and can lead to a poor relationship between you.
Whether your pay rise is successful or not, you should be mindful of remaining professional throughout.
Asking for a pay rise: step by step
The pay rise negotiation process can be broken down into seven basic steps:
1. Research similar jobs
2. Assess your overall value
3. Justify your pay rise
4. Practice your pitch
5. Negotiate with your boss
6. State your case
7. Wait for a response
1. Research similar jobs
You should start by reviewing what other companies are paying others in your position near you. You can use job posting websites, ask around, or even ring up competing companies directly and see what they say.
Knowing your role's market rate will let you know whether you're negotiating for a higher-than-market rate pay rise or just an in-line salary increase. Be sure only compare similar roles with the same requirements, though. Looking at junior positions when you have extensive experience will mean you undervalue your value. Conversely, comparing your salary to positions that require more qualifications or experience may give you an inaccurate picture.
2. Assess your overall value
Take into consideration your overall value to the company and why you deserve a pay rise. This involves how long you've worked for your employer and your experience within the industry. Consider your qualifications, skills and training, and your additional responsibilities. Factoring everything in may mean your worth to your employer is higher than just the market rate.
3. Justify your pay rise
Companies don’t like giving away money, so you’re going to need to justify your pay rise. Begin by making a list of your achievements working for the company. Be specific and include concrete figures regarding key performance indicators (KPIs) when possible.
For example, if you can prove you increased customer retention, energy savings, or customer satisfaction by a measurable amount, write it down. Next, list your educational and career accomplishments, extra training, skills, and experience that make you invaluable to the company.
These will give your boss and a pay review board sufficient reason to justify a pay rise and can help prove your worth.
4. Practice your pitch
Once you have justified your pay rise with evidence, you need to consider your pitch. Organize your reasons into a compelling argument. State what you do, why it’s useful, why you want more money, and what other opportunities are out there if you don’t get one.
Lean on facts rather than bold statements to make your case hard to dismiss. Emphasize how much you enjoy your job and are committed to the company. Practice your pitch on friends and family or even to yourself in a mirror. Think about possible questions and rebuttals, considering your own responses carefully.
For example, what would you say if you were offered private healthcare instead of a pay rise? Try and be prepared for every eventuality.
5. Request a meeting
If you are asking for a pay rise outside of a regular appraisal, be sure to give your boss notice. They will not appreciate an impromptu pay rise request as it is not considered professional.
Instead, explain to your line manager that you would like a meeting to discuss your salary. ideally, you should request this in person, but an e-mail is also considered acceptable. This gives your boss chance to prepare for the meeting and consider their responses. They may also want to have someone else from the company present.
6. State your case
Come the time of the meeting, you should have a list of good reasons for your pay rise and a fair salary figure in mind. Go into the meeting feeling confident that your skills and time are worth this much and that you are valuable to the company. Providing you've rehearsed your pitch, you should know what to say and when.
While this can be nerve-wracking, remember why you are asking for a pay rise and respect your own worth. That said, you may still need to be flexible. It may be that your company simply cannot afford a pay rise, or you've made a mistake in your estimations. In this case, remain professional and consider the feedback given.
7. Wait for a response
After you’ve had your meeting, you will need to wait for a response. Most employers won’t tell you there and then if your request has been granted. They will often need to consult others within the company.
After the meeting, ask your boss how long you should expect to wait for a response and be patient in the meantime.
Tips to secure a pay rise
When approaching your boss for a pay rise, consider the following tips to give you the best chance of success:
1. Be assertive: A pay rise is ultimately a business negotiation. Your boss will need a compelling business-related reason to pay you more money. You should therefore be assertive and clearly explain the value of your time and skills.
2. Be prepared to walk away: Sometimes, negotiations fail, and a pay increase is not possible. In these cases, you should consider the reasons given and ask yourself if they are fair or not. If your salary is left below market value, consider looking for alternative employment.
3. Don’t play hardball: Companies do not respond well to threats. Playing hardball and threatening to work for someone else unless suitably paid rarely works. It can also create tension between you and your boss.
4. Use numbers and KPIs: Concrete facts are hard to argue with. Go into your meeting armed with a series of measures of your performance that you believe will impress.
5. Don’t mention the cost of living or inflation: While rising prices and the cost of living crisis are felt more keenly at the personal level, businesses are affected too. It’s not a good idea to request a pay rise due to these reasons, as everyone is in the same boat.
What to do if you’re denied a pay rise
If you have your pay rise turned down, how you respond will depend on the reason given. Your boss claims you do deserve a pay rise, but the company's budget does not allow for one. In this case, ask for a specific date when another meeting can be set up.
Your boss may also explain that your salary is already enough remuneration and a pay rise is not warranted. If told this, remain professional and thank them for the meeting regardless. Your next step is to consider if the feedback is accurate or not.
If there are areas you could improve, take this on board. Consider upskilling and taking additional training. Talk to your boss about taking on any further responsibilities and prepare for a pay discussion in the future. If your skillset and experience really do justify a pay rise and your company undervalues you, it may be time to look for other opportunities.
