Navigating the negotiation of a pay rise can be stressful and nerve-wracking. Our recent research has shown that companies intend to invest in their people this financial year. With inflation and employers being more sensitive to the cost of it, salaries are expected to rise. This is further fueled by Australia's ban on pay secrecy, prompting certain employers to review their salary structures and make necessary adjustments to ensure fair and equal compensation and salary transparency.
Although asking for a pay rise can often be plagued by fear or self-doubt, it is a step in advancing your career and ensuring fair compensation. Starting the conversation might be intimidating; however, you can increase your chances of success with the right approach and preparation. This guide provides five steps to consider when seeking a pay rise.
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STEP 1: Clarify your motivation
Discerning your primary motivations for seeking a pay rise will provide clarity on your objectives. Although financial gain often tops the list, exploring alternative benefits and perks during negotiations is crucial. Evaluate your priorities, analyze industry standards and weigh specific perks while remaining receptive to potential compromises.
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STEP 2: Do your research
Before you even think about scheduling a meeting, it is essential to gather relevant information. Scrutinize industry standards and salary benchmarks, factoring in variables like experience, geographical location, scope of responsibilities, and more. Consulting multiple sources of information, such as our website, LinkedIn, and Seek, offers a well-rounded view of average remuneration in your field.
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STEP 3: Gather your evidence
Highlight your achievements and contributions to the company while emphasizing your case with concrete data and examples. Numerical evidence holds weight, and it is important to have strong and concise numbers. Similarly, it is very important to demonstrate your alignment with the company's culture and values, and your contribution to the team.
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STEP 4: Choose a strategic timing
Optimal timing can significantly impact the outcome. Identify instances where your performance has been exceptional, or you have undertaken added responsibilities. Strategically choose moments such as performance reviews or after notable accomplishments to initiate the conversation. Consider your proficiency at the role, length of service at the company and your contributions.
Some workers usually negotiate upon signing a new contract or at the end of the Financial Year. Ensure you review your contract; some companies indicate salary review dates.
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STEP 5: Be clear and confident
Clearly and confidently articulate your request for a pay rise. Emphasize your dedication to the company and your commitment to its success. Present your accomplishments alongside industry benchmarks, building a compelling case for a higher salary. Be respectful, professional, and open to constructive dialogue. Practice your pitch beforehand, and be prepared to answer any potential questions or objections.
Regardless of the outcome, follow up after your meeting. If you receive a positive response, express gratitude and confirm the meeting details in writing. In instances where your request is not approved, engage in dialogue to gain insights into avenues for future success and ensure you have a contingency plan.
Remember, the art of asking for a pay rise is not solely about the outcome; it's a mastery that equips you with valuable negotiation skills, fortifying your professional journey.
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