How to nail a pay rise request? For women, it’s the $26,393 question

A few weeks ago, I watched from afar as the Workplace and Gender Equality Agency’s first tranche of pay gap data was released.

From my home in Los Angeles, it was fascinating to see Australian employers and employees grapple with an unfiltered reality where, for the first time, there was no place to hide from the fact that women continue to be paid substantially less than men across the majority of industries.

Successfully negotiating a pay rise often comes down to when and how a person asks.Credit: Dionne Gain

With an average gap of 21.7 per cent and women earning 78 cents to every dollar a man makes, over the course of the year the difference adds up to $26,393.

One of the most popular and prevailing myths as to why women are paid less than men is because we’re simply too polite to ask for pay rises. Apparently, we don’t want to sell ourselves, don’t like talking about money, don’t want to be seen advocating for ourselves and fear being rejected.

Though there’s some validity in the discomfort these discussions come with, the major flaw in this argument is that research paints a very different picture. Far from being an issue of meekness, research shows women are more likely to ask for a pay rise than their male colleagues. So if women are asking more but still being paid less, what gives?

Having spent the first four years of my career working in HR for an investment banking firm, I saw salary negotiations take place almost every day. Where women asked and successfully negotiated a pay rise often came down to how and when she asked.

For the most part, this meant choosing the right time and establishing the facts.

If you’re a strong performer and can present a compelling story about how your experience and skills are benefitting your employer, it’s fair to ask for a pay rise every 12 months. But if you’ve been working at the company for under six months, it’s too soon to be pushing for a pay rise or a promotion.

Any wins you’ve had in this time will still count when it’s time for an annual review, and they’re skills that will help you with future promotions or roles elsewhere, and teach a valuable lesson about negotiating harder on the way in.

Before going into any meeting, remember that this is a transaction – it’s not personal. If you can keep emotion out of it, you’re going to put your best foot forward.

Then comes the rule of three: experience, role and output.

Your experience within an industry counts for something, but so does historical knowledge of a company and transferable skills. So if you’re wondering why someone who does the same job as you is paid more, it may be because they have more experience within the company, or skills from previous roles that you don’t. (If you’re unsure, you’re well within your rights to ask your manager for clarification around this.)

In focusing on your role, you can focus on facts and facts only. Articulate how the scope of your role has widened or changed in the past 12 months. Have you brought on new clients or taken on additional tasks? Have you improved operations or business outcomes?

Then, drive home your output. Provide numbers, data, projects, returns you’ve delivered. Clearly outline your value and how your performance is an asset. This reminds your manager of what you’re capable of and the value you add to the business.

Beyond this, arm yourself with market data – a secret weapon that makes what you’re asking for hard to argue. By knowing what similar roles are paid within your city, you can benchmark your salary against that and provide further context to your request.

You can also use the WGEA data to see how your company is performing, as well as comparing it with similar-sized companies and companies within your industry. This might feel uncomfortable, but a good motto is “don’t ask, don’t get”.

Though all of this will set you up with the best chance of being successful in getting a pay rise, be prepared for it not to happen immediately. If the answer to your request is no, ask for a clear explanation: what you can do to improve your chances next time around, how can you improve specifically, when will your next salary review be?

Ultimately, asking for a pay rise is about you – your role, your experience and your output, not competing against your colleagues. In learning to take control of your own career, you gain power in the situation and a much clearer picture about who you’re working for, and their priorities.

But whatever you do, remember that the price for not asking is high. In fact, it’s the $26,393 question.

Michelle Battersby is the co-founder and chief marketing officer of Sunroom.

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