Rewards and Pay

Negotiating a pay rise for Employees

Asking for your pay rise

OK, so you’ve decided you could – or even should – be paid more.  And you want to do something about it – good for you! Remember, your pay affects you more than anyone else, so it’s on you to own it and deal with it.

But before you charge in and confront your boss/leader/next responsible up the ladder, you should do your homework so you’re not caught out, denied, embarrassed or even end up in a worse position.

So, what are you worth?  Before you bail up the boss, ask yourself these key questions:

  • Why am I NOT getting the correct pay now?
  • What do I want?
  • How do I make the request, or start the negotiation?
  • When do I ask for a pay raise?
  • What’s my pitch (how to negotiate)?
  • What will I do if I’m unsuccessful?

Be careful what you wish for, as there may be a sting in the tail!

Good luck.

 

© 2017 All rights reserved
mwah. making work absolutely human

Asking for your pay rise

In an ideal world you wouldn’t need to ask for a bigger pay packet, as your boss would be totally on top of the situation and would be reviewing and adjusting your salary as a valued and contributing member of their team…

The reality is however, your pay affects you more than anyone else, so it’s on you to own it and deal with it.

Before you charge in and confront your boss/leader/responsible next up the ladder, you should do your homework so as you’re not caught out, denied, embarrassed or even end up in a worse position.  These are the things you need to consider first:

  • What are you worth?
  • Before you launch into bailing up the boss ask yourself the key questions
  • Consider why you’re NOT getting the correct pay now?
  • What is it you want?
  • How do I make the request, or start the negotiation?
  • When do I ask for a pay raise?
  • The pitch (how to negotiation)
  • What will I do if I’m unsuccessful?
  • Be careful what you wish for, as there may be a sting in the tail!

 

What are you worth?

Clearly, if your reading this, then maybe you feel you should get something more then you feel you’re currently being paid.

To find out what you’re worth first try these:

  • online company sites of with annual reports
  • job ads
  • ask your, friends, family, colleagues, co-workers, etc. Of course you won’t always get a straight answer, but it’s just another data point to consider.
  • Be wary of some online sites that ask for your resume details to ‘calculate’ your worth. You are handing over all your data and personal information which may lead to unsolicited attention.

 

Before you launch into bailing up the boss

You should ask yourself a few initial questions:

  • Am I already being paid the right amount?… or even more than I should? (don’t shoot yourself in the foot!).
  • Are there wider implications to my request? (Do
    I need to get the waggons in a circle).
  • Am I setting myself up to get more work or responsibility? (with greater pay, comes greater responsibility).
  • Do I have a plan on how to actually ask for the pay rise? (you really shouldn’t just blurt it out at the water cooler).
  • When is the best time to ask? (Just like selling ice, the season is important).
  • When ‘you’ are asked why? (Do you have a credible response beyond “because I’d like more …”).
  • What’s my plan if the answer is no? (skulk away, start scheming or return serve?).
  • Am I creating myself as a tall poppy (the lawn mower will get you first)?
  • What is the exact amount you’d like to get (having a plan ‘is’ the plan)?

 

Next step is to consider why are you not getting the correct pay now?

There may be plenty of reasons why this has not happened.

Perhaps they include – your boss:

  • is blissfully unaware that you should be paid more,
  • does not know about your changing role and responsibilities with your job, (bracket creep)
  • does not want to pay you more as you are being paid correctly right now,
  • just wants to only ever pay you the minimum they can get away with.

 

What is it you want?

Is it cold hard cash you sooo desire? or will some other benefit suit you better or a combination of the two?

e.g. shorter working hours, education/training, travel, larger superannuation contributions, a better office or location, gym memberships, extra time off, etc.  Occasionally a leader’s hands may be tied for your base salary, however other options may be possible.

Ok so you’ve done your homework, and you’re now clear on your objective… right!? You have a figure in mind or/along some changed conditions or whatever.  But be clear on what is a successful outcome for you.

 

Now comes the request and perhaps the negotiation

Asking for more pay can be more than a request, sometimes it’s a negotiation.  Negotiating is a basic life skill which many people take for granted.

Firstly, decide on which type of negotiator you are and then consider where you need to be:

  • Nervous nelly – retreat retreat!
  • Wishful thinker – a penny for your thoughts.
  • Oliver Twist – please sir, I want some more.
  • the squeaky wheel – you’ll get the oil.
  • George Clooney – Ocean’s 11 has nothing on your level of planning.
  • Winston Churchill – we shall fight them on the beaches.

Next work out which negotiation style your boss will respond to best.  e.g. if you choose squeaky wheel, ensure your boss is responsive to that approach and not just get ticked off.

If you see yourself as a Nelly/Wistful/Oliver and are lacking in confidence in the negotiation space, then you may need to practice before hand.  After all, negotiation is just a skill set.  The best place to go is a large white goods retailer and see if you can get a reduction off the ticket price.  Remember you ask for their reduction, you don’t tell them how much you want to reduce it.  You don’t have to buy it of course, just get used to what it feels like to ask.  If you get a reduction, great!   At some point, you will be rejected.  Get used to that too, as that’s part of the process.

 

When to ask for your pay raise.

The absolutely best (and worst) time to ask for an increase in pay is at your performance review.  The proviso for this is if you’re expecting to be given a poor assessment, your chances of having leverage to get an increase in pay is… well, equally poor.

If you don’t have reviews, then ask for one.  Consider, what has changed since your last review.  Have you met/exceeded your goals.  Basically, you are looking to fill your negotiation arsenal with good examples of you doing great things.

For more information about performance reviews and how to make the most of them, you would really benefit from checking out that section of the mwah. knowledge base.

 

The pitch (negotiation)

Don’t under or oversell yourself, make sure you pitch it to the recipient’s understanding and bias.  In any negotiation, you should never never! NEVER! be the first person to say what you want.  You may want X and the manager may offer you X+Y.  Therefore if you say you want X from the outset you may only get X.  Getting more than you initially wanted… would be nice.

Call it what you will, however when the discussion/negotiation/debate is over your intention is to leave with a win.

 

If you’re unsuccessful.

Ask why, set some achievable goals and remind the boss when you meet them.  Set a review time and go over how well you’ve done and …. Ask for THAT pay rise!  Consider increasing your exposure in the workplace to ensure the boss is noticing you.  Yep, it is sometimes about your profile too.  Increase your visibility both external to your workplace & internally.

 

Be careful what you wish for:
Getting a pay raise when you’re underpaid means you’ve been doing extra without being compensated and so you’re just evening up the ledger.

On the other hand, if you’re asking for something which is over and above what you’re currently doing then be prepared to be asked to do more, or be more.

 

Good luck

 

© 2017 All rights reserved
mwah. making work absolutely human

Asking for your pay rise

OK, so you’ve decided you could or even should be paid more.  And you want to do something about it – good for you!

In an ideal world, you wouldn’t need to ask for a bigger pay packet – your boss would be totally on top of the situation and would be reviewing and adjusting your salary as a valued and contributing member of their team.

The reality is, however, that your pay affects you more than anyone else, so it’s on you to own it and deal with it.

Before you charge in and confront your boss/leader/next responsible up the ladder, you should do your homework so you’re not caught out, denied, embarrassed or even end up in a worse position.

So, what are you worth? Before you bail up the boss, ask yourself these key questions:

  • Why am I NOT getting the correct pay now?
  • What is it I want?
  • How do I make the request, or start the negotiation?
  • When do I ask for a pay raise?
  • What’s my pitch (how to negotiate)?
  • What will I do if I’m unsuccessful?

Be careful what you wish for, as there may be a sting in the tail!

 

So, what are you worth?

Clearly, if you’re reading this then maybe you feel you should be getting more than you’re currently being paid.

To find out what you’re worth first try these sources:

  • http://www.fairwork.gov.au/
  • https://au.hudson.com/
  • https://www.humanservices.gov.au/
  • http://www.abs.gov.au
  • Online company sites with annual reports
  • Job ads
  • Ask your, friends, family, colleagues, co-workers, etc. Of course, you won’t always get a straight answer, but it’s another source to consider.
  • Be wary of some online sites that ask for your resume details to “calculate” your worth. You are handing over all your data and personal information, which may lead to unsolicited attention.  But it’s for you to decide after you’ve had a look.

 

Before you bail up the boss…

…you should ask yourself a few initial questions:

  • Am I already being paid the right amount…or even more, than I should? (Don’t shoot yourself in the foot!).
  • Are there wider implications to my request? (Do I need to get the waggons in a circle?)
  • Am I setting myself up to get more work or responsibility? (With greater pay, comes greater responsibility.)
  • Do I have a plan on how to actually ask for the pay rise? (You really shouldn’t just blurt it out at the water cooler.)
  • When is the best time to ask? (Just like selling ice, the season is important.)
  • When you are asked, “Why?” do you have a credible response beyond “because I’d like more …?”
  • What’s my plan if the answer is “No?” (Skulk away, start scheming or return serve?)
  • Am I setting myself up as a tall poppy? (The lawn mower will get you first.)
  • What is the exact amount I’d like to get? (Having a plan is the plan.)

 

Next step is to consider why are you not getting the correct pay now?

There may be plenty of reasons why this has not happened. Perhaps they include that your boss:

  • is blissfully unaware that you should be paid more.
  • would pay you more if they understood more about your contribution.
  • doesn’t know about your changing role and responsibilities with your job (bracket creep).
  • is being mindful of far-reaching implications that will affect many others.
  • does not want to pay you more as you are being paid correctly right now.
  • may have budgeting issues.
  • just wants to only ever pay you the minimum they can get away with.

 

What is it you want?

Is it cold hard cash you sooo desire? Will some other benefit suit you better? Or a combination of the two? e.g. shorter working hours, a fringe benefit, education/training, travel, larger superannuation contributions, a company car, a better office or location, gym memberships, a bigger bonus, extra time off, etc.

Occasionally a leader’s hands are tied for your base salary, but there may be scope for other extraneous options that may work just as well for you.

OK, so you’ve done your homework, and you’re now clear on your objective… right!? You have a figure or some changed conditions in mind. Whatever you’re going for, be clear on what a successful outcome is for you.

 

Now comes the request… and perhaps the negotiation

Asking for more pay can be more than a request – sometimes it’s a negotiation.

Negotiating is a basic life skill that many people take for granted.  Children negotiate with their parents for ice cream, teenagers negotiate to get their own way, adults negotiate to buy a car, etc.  We all do it every day in a multitude of ways.  So why all the anxiety about negotiating for a pay rise?

First, decide on what type of negotiator you are and then consider where you need to be:

  • Nervous Nelly – retreat retreat!
  • Wishful thinker – a penny for your thoughts.
  • Oliver Twist – please sir, I want some more.
  • The squeaky wheel – you’ll get the oil.
  • George Clooney – Ocean’s 11 has nothing on your level of planning.
  • Winston Churchill – We shall fight them on the beaches.

 

Next, work out which negotiation style your boss will respond to best.  E.g. if you choose the squeaky wheel, ensure your boss is responsive to that approach and won’t just get ticked off.

There is a power disparity between you and your leader, and you may need to be respectful of what that represents and how best to manage that.  Yes, they may “manage” you, but you can be clever and understand that you have the scope to manage how they manage you.  Hope that’s clear.

If you see yourself as a Nervous Nelly/Wishful/Oliver and are lacking in confidence in the negotiation space, you may need to practice beforehand.  The best place to go is to a large white goods retailer and see if you can get a reduction off the ticket price.  Remember, you ask for their reduction – you don’t tell them how much you want to reduce it.  You don’t have to buy it of course, just get used to what it feels like to ask.  If you get a reduction, great!

Now ask if you can get a further reduction, and so on.  At some point, you will be rejected.  Get used to that too, as that’s part of the process. Build your confidence by trying this many times at different stores until you’re ready.

 

When to ask for your pay raise

Asking for a pay rise at your performance review can be either the absolute best – or worst – timing.

The rationale is this: if you’re expecting to be given a poor assessment, your chances of having leverage to get an increase in pay is… well, equally poor. Conversely, consider what has changed since your last review Have you met/exceeded your goals? Have you met/exceeded their goals? Plan it, think of examples of how you perform above the norm and deserve more recognition.  Basically, you are looking to stock your negotiation arsenal with great examples of you doing great things. A great assessment equals greater leverage.  If you don’t have performance reviews, ask for one.

For more information about performance reviews and how to make the most of them, please go to that section of the mwah. knowledge base.

 

The pitch (the negotiation)

Don’t under or over-sell yourself – make sure you pitch it to your audience.

In any negotiation you should never, never!, NEVER! be the first person to say what you want.  In poker, it’s the equivalent of showing your cards before you bet.  Simply make your case and let the manager say what they think it’s worth.  You may want X and the manager may offer you X+Y.  Therefore, if you say you want X from the outset you may only get X.  Getting more than you initially wanted would be nice…

Call it what you will, but when the discussion/negotiation/debate is over, your intention is to leave with a win.  Not a win “at any price” but yes, a win.  But be aware of broader implications of pushing too hard as you may win the fight but lose the war.

 

If you’re unsuccessful

Ask why. Set some achievable goals and remind the boss when you meet them.  Set a review time and go over how well you’ve done and…ask for the pay rise!

Consider increasing your visibility and exposure in the workplace:

Internal to your workplace

  • Look at where and when you have breaks and lunch
  • What time you start and end your day
  • How you get to and from home
  • Sometimes it’s not enough just doing your job, but it’s being seen doing your job 😉

External to your workplace

  • LinkedIn (and ask for endorsements)
  • Facebook groups
  • Professional organisations
  • Trade associations
  • Alumni groups
  • Sporting groups who have a strong affiliation with your next step pay grade or profession
  • Retrain or renew or enhance your formal education

 

Be careful what you wish for
Getting a pay rise when you’re underpaid means you’ve been doing extra without being compensated for it and so you are just evening up the ledger.  On the other hand, if you’re asking for something that is over and above what you’re currently doing, be prepared to be asked to do more, or be more.

 

Good luck.

 

© 2017 All rights reserved
mwah. making work absolutely human

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