More than half of Australians expect a pay rise this year, creating tension when employers plan to offer a reduced increase.
The majority of Australian employers will raise salaries at a lower level of three per cent or less, with only five per cent intending to give a raise of more than six per cent, according to Hays.
Fifty-seven per cent of Australians said a salary increase was their number one career priority this year, while 46 per cent intend to ask their employers for a raise.
With the latest data showing that the overall value of pay rises is falling, Australians are increasingly prepared to have the tricky conversation with their boss to improve their earnings, according to Hays managing director Nick Deligiannis.
To help ensure a pay rise request is successful, Hays advises the following five steps:
Gather supporting evidence
For a salary increase request to be successful, employees need to firstly show their boss why they deserve a raise.
“It’s not enough to say the cost of living is increasing or that you’re generally doing a good job,” Deligiannis said.
“You must have specific and quantifiable evidence to present to your boss.”
For each accomplishment, employees should list the resulting benefit to the organisation and demonstrate the greater value they bring to the employer.
Research typical market salaries
Employees should back up their request by demonstrating that the salary asked is in line with current market rates. This research should identify how much one’s performance and results are worth.
Set the meeting and remain professional
Employees shouldn’t spring this conversation on their boss. Deligiannis advises to book a time with the manager and clearly state the objective of the meeting request – a salary review.
“Do not become emotional and do not talk of how much money you need, such as rising bills or the cost of living. Instead, clearly present the evidence you’ve gathered to support your pay rise request,” he added.
“If you’ve gathered appropriate evidence, you’ll have strong grounds for an increase that are hard to ignore.”
Be prepared to negotiate
Employees should keep in mind their justifications for asking for a pay rise in the first place and consider how much they’re willing to compromise.
Have a fall-back position
A contingency plan may include agreeing for a specific date for another pay review in the future or the offer for other additional benefits, such as working from home or extra annual leave.