Our Guide to Asking for a Pay Rise
Asking for a pay rise can be daunting, especially if you’re not used to salary negotiations or advocating for yourself. Many workers would prefer their employers offer a pay raise as a productive retention effort. Unfortunately, even in organisations with those kinds of performance review processes, there’s still an element of employee initiative required. In other words, employees are often expected to make the first move when asking for a pay bump.
The good news is that there are things you can do to make your case politely yet convincingly.
The challenge of asking for a pay rise
Knowledge is power when asking for a pay rise. Coming prepared with detailed information about the job market or a list of your achievements ensures it’s far easier to make a cohesive argument. You might also factor in the company’s health or how the strong relationships you’ve formed with clients make you a valuable resource. All these points, and many more, illustrate why asking for a raise is justified. However, a recent Finder survey discovered one in 10 Australians were too afraid to ask for a pay rise in the past three months.
This is why starting the process with the right attitude is so important. It’s not greedy to ask for a salary that fairly represents the value you provide to the organisation, and you don’t need a selfless or obvious reason, like having children, to make the request. It’s perfectly fine to ask for a raise because you could do better elsewhere or just because you think the time is right. So, even before you request a meeting to discuss, getting in the right frame of mind to confidently outline your case is crucial to success.
You might also find cultural stigmas are holding you back. Fortunately, there are not the same social implications around asking for a pay rise in Australia as in other parts of the world. While asking for what you think you’re worth is more than enough reason, the tricky part is finding the best time to do so and avoiding what not to say during a salary negotiation. There’s also the challenge of knowing what to do next if your request is denied.
Much of your bargaining position is based on the risk you’ll leave for a better-paying job. You could damage your position for future negotiations if you show that you’re willing to accept the same salary you’re on. Having a plan for what to do doesn’t necessarily mean being prepared to quit on the spot. Rather, you might ask what you need to achieve to justify a pay rise or make an alternative offer, like extra time off.
How to ask for a pay rise
Once you’ve made peace with the challenge of asking for a pay rise, taking steps that build confidence is key to achieving your ideal outcome. Then, it’s time to request a meeting to discuss your request and consider the next steps depending on the outcome.
Get prepared
You don’t want to rush into a meeting to discuss your pay without being prepared with as much information as possible. Collecting data relevant to your request will make your argument significantly more convincing, plus it can inform your next steps if your request gets turned down.
You can also overcome the stress of a sit-down salary negotiation by practising your approach and developing a detailed contingency plan that outlines your future, no matter the outcome. Ready to ask for a pay rise? Explore these strategies to put your best foot forward.
Assess the job market
Gather numerous examples of current job ads, vacancies and reports by recruiting organisations showing your pay rise request is within fair market range. Make sure the job description matches your current position and that you have proof of how you spend your days at work, as this can support your argument.
You should also account for the total salary package when comparing examples. For example, if the ad or report specifies a total package, it could include superannuation, bonuses and benefits. Find job market information via the Australian Bureau of Statistics, major job search websites, industry association sites and more.
In some circumstances, you may also request information from recruiters, high-level managers and industry experts within your networks. This might be appropriate when you work a highly specialised job. Use all the avenues at your disposal to assess the job market and produce a convincing claim.
Research the company’s health
Depending on your organisation and its reporting or transparency rules, you might access detailed information about your company’s financial health. As it’s common for organisations to reject a pay rise due to financial or economic factors, collecting information that explores the company’s position could provide more support for your request.
For example, some companies publish information on departmental budgets or monthly sales reports. There might also be quarterly or annual financial reports that show how the company’s profit and revenue is performing. Meanwhile, reports used at shareholder meetings or news stories about your company might provide more evidence.
While your manager likely has access to this information, showing your research could help them arrive at a favourable decision. However, remember the information you collect might not be conclusive and there could be legitimate reasons a company can’t afford your request. However, it doesn’t hurt to research this information and have it ready to discuss.
Highlight your achievements
Some roles make it easy to draw a direct link between your work and improvements to the company’s bottom line. For example, salespeople can point to key performance indicators, such as customer lifetime value, sales revenue and sales growth rates. Similarly, marketers can showcase their effectiveness through increased leads and sales data, while operations managers can point to increased efficiencies and cost savings.
In other cases, making this link isn’t so clear. For instance, front-line customer service and administrative staff can find it harder to show their direct contribution. Instead, these workers can review their original job description to identify areas where they’ve gone above and beyond through increased workloads and consistent performance. This way, you can show that you’ve contributed to the organization’s top-line growth.
Either way, get as much information as you can, especially objective data that shows you’re primarily responsible for outstanding results. If this isn’t possible, using other sources to support your claim is a good idea. If a client has praised your work on a project, a colleague has thanked you for solving an ‘impossible’ problem, or you received an industry award, these can all support your case.
Practice your salary negotiation
Most people are likely a little nervous about heading into a salary negotiation. Even if you feel entirely justified in requesting a raise, asking for more money and even advocating for yourself can feel somewhat awkward. That’s why organising a mock salary negotiation with a friend or mentor is a smart decision.
By role-playing the meeting ahead of time, you can hone your argument and remember certain accomplishments and data points supporting your request. Meanwhile, you can practice your tone and body language, with your partner providing feedback and pushback that forces you to think about your response.
It’s important to remember that these negotiations can often be emotional situations, but staying calm under pressure is critical to achieving your ideal result. Practising the event with a trusted friend or mentor means you should feel more comfortable heading into the meeting for the real thing.
Have a contingency plan
There’s no guarantee you’ll get what you want, even if all the data suggests you deserve it. Therefore, it’s wise to create a contingency plan for situations where the pay increase doesn’t go your way. Rather than letting the disappointment hold you back, you can work towards a new goal that enhances your career.
For example, some workers might settle for other benefits and perks over a salary increase. This could include extra vacation days, flexible working hours, an option to work from home or professional development opportunities. Even a job title change without a pay increase could improve your prospects.
There’s also a strong argument for delving into the job market or finding the time to study to earn the salary you think you deserve. However, if you’re unwilling to walk away from the company, consider asking to set a date for a performance review to assess your request again. With these contingencies in place, finding a new role or reskilling online becomes much easier.
Meet with your manager
Once you’ve researched the job market, learned about the company’s health and practised a mock salary negotiation, it’s time to organise a meeting to ask for a pay rise. Rather than springing this on your manager, find an appropriately calm moment to approach them and ensure you leave enough time for them to prepare for the meeting. Then, you can apply these tips to give yourself the best chance of success.
Presentation matters
While it’s important not to overthink the meeting, getting the basics right puts you in good stead. This means arriving on time, wearing a presentable outfit and maintaining relaxed body language when sitting down with your manager. This way, you can keep the meeting positive and feel confident in making your case.
Make the ask
Being direct is a good thing when negotiating salary, but avoid becoming combative. Make your case using job market data and support it with your achievements that benefited the organisation. You’ll likely receive feedback, so listen closely and be prepared to respond with composure.
Avoid the emotion
It’s easy to become emotional during a salary negotiation. However, don’t make threats about quitting the company or downing tools if you don’t get what you want. Not only can this harm your position moving forward, but it could mean that you don’t get a glowing reference if you decide to move company.
Respect the outcome
If your pay rise request is accepted during the meeting, a gracious thank you is all that’s required. However, if your manager denies your ask, see if other alternatives like paid leave or a bonus structure are possible. You should also ask if you can review the situation in three or six months. Although you’ll be disappointed, thank your manager for their time.
After the meeting
You’re bound to feel a little lighter once the meeting is over, even if your request was denied. While the job’s almost finished, regardless of the outcome, following up on these small details rounds out the process of asking for a pay rise.
If your request was accepted
Getting the details of your conversation in writing is always a smart decision when undertaking a salary negotiation. If your pay rise request was accepted, send an email summarising the meeting and confirming when it will take effect. This might be a good time to set a date for a future performance review.
If your request was rejected
You might feel frustrated or undervalued, but don’t let a denied pay rise affect your career. Instead, follow up with your manager to see if they can provide feedback about your progress. If you remain unhappy with the situation, there’s no shame in searching for a new role that better values your contribution.
Ask for a pay rise with these email templates
Learning how to ask for a pay rise isn’t easy for everyone. That’s why we’ve put together these helpful email templates with various tones to help get the ball rolling with your manager.
Template #1: Direct and professional
Dear [Manager’s Name],
I hope this message finds you well. I am writing to formally request a review of my current salary. Over the past [duration], I have taken on additional responsibilities, contributed to key projects, and consistently met or exceeded performance expectations.
Given the impact of my work, I believe it is an appropriate time to discuss my compensation. I would appreciate the opportunity to meet and discuss my role and how my contributions align with a potential salary adjustment.
Please let me know a suitable time for us to have this conversation.
Thank you for your consideration, and I look forward to our discussion.
Best regards,
[Your Name]
Template #2: Friendly and relaxed
Hi [Manager’s Name],
I wanted to take a moment to talk about my role and growth here at [Company]. Over the past [duration], I’ve been really proud of what I’ve been able to achieve, including [mention key achievements or contributions].
Given my expanded responsibilities and the value I’ve been contributing to the team, I’d love to explore the possibility of a salary adjustment. I’m confident that my contributions reflect the direction we’re going, and I’d appreciate your thoughts on how we can move forward.
Let me know when it would be a good time for us to chat!
Thanks so much,
[Your Name]
Template #3: Confident and determined
Dear [Manager’s Name],
I am writing to request a meeting to discuss an adjustment to my compensation. Over the past [duration], I have consistently delivered results that align with the company’s goals, including [mention specific achievements], and have taken on additional responsibilities that go beyond my current role.
In light of these contributions, I believe that my current salary does not accurately reflect the value I bring to the team. I would like to discuss how we can adjust my compensation to better reflect my role and contributions to the company’s success.
Please let me know a convenient time to have this conversation.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Find your next career at Monarch Institute
Prepare, have a plan, maintain the right attitude, and you’ve got a good chance of securing the pay rise you ask for. If you’re considering your next career move, speak to one of our friendly course consultants and explore your ideal path.
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