Negotiation tips: how to ask for a pay rise in 2022

Looking for a pay rise in 2022? Experts share their top tips for nailing the negotiation.

More than one in seven Aussies set a career-related new year’s resolution – and 2022 may be the perfect year to make it happen.

Whether it’s a new job, a pay rise or better work/life balance, the Covid-19 pandemic has put pressure on many employers, giving workers the power to ask for more.

Negotiation specialist Kate Lalak says “there has never been a better time”.

“With the amount of movement in the workforce and it has been widely publicised that there is a shortage of skilled workers, it means if you are skilled and have experience in the field you work in then you’re a valuable asset either to your current employer or to a new employer,” she says.

Shanyn Payne, chief people officer with comparison website Finder, says The Great Resignation last year in the US showed employees aren’t willing to settle anymore and will vote with their feet if they’re not happy at work.

“For many industries, the pandemic put a lot of power back in the hands of employees and jobseekers which is likely to carry into 2022 making it a great time to open up these conversations,” she says.

“That being said, it is worth being mindful that the pandemic placed financial strain and pressure on many businesses, so take your organisation’s situation into account.”

Marketing director Kate Parker recently negotiated a higher salary. Picture: Supplied

WHAT WORKERS WANT

A December survey of more than 1000 Australians by Finder reveals 15 per cent have a career-related new year’s resolution, with 8 per cent wanting better work/life balance and 7 per cent looking to change job.

Meanwhile, a poll by people2people recruitment reveals 42 per cent of respondents looking for a new role this year are driven by salary and 20 per cent are driven by workplace flexibility – two factors that can be negotiated without leaving their employer.

HOW TO GET IT

Thousands of Australians are looking for ways to increase their salary each month, according to research from data provider Semrush.

It finds the number of searches for “how to negotiate a raise” increased eight-fold since 2018, and searches related to negotiating salary for a new job more than doubled between 2020 and 2021.

Three workplace experts share their best negotiation advice:

BE PREPARED

Whether you are asking for more money or new benefits, Payne says preparation is key.

“Research salaries for similar roles in other companies, outline your achievements and results that you have contributed in the last year, have some alternatives (to ask for) other than salary,” she says.

“If it’s flexibility you are after, come prepared with a plan for how it is going to work for both you and your employer.”

Finder ramped up its company benefits last year, announcing an extra week of paid ‘life leave’ for reasons such as paw-ternity, volunteering, birthdays, heartbreak or first days of school, as well as a gender-neutral parental leave policy offering 20 paid weeks to both primary and secondary carers.

People2people’s Erin Devlin recommends checking a salary guide before starting the negotiation. Picture: Supplied

If negotiating salary for a new job outside your organisation, People2people Recruitment Victoria managing director Erin Devlin recommends looking at salary guides and researching the employment market to determine how much demand there is for your skills.

“Make sure you have a clear (salary) range you are working with,” she says.

FIRM BUT POLITE

It’s often tempting to be light hearted to ease the tension in awkward conversations, but Payne says workers should avoid this.

“Remember that this is a business conversation and you want to be taken seriously,” she says.

“It is OK to acknowledge if you feel awkward or uncomfortable having the conversation, but also acknowledge what you are asking for is important to you and have your key reasons why.”

REVERSE ENGINEER IT

If negotiating a pay rise with your current employer, Devlin recommends setting a goal salary and working backwards.

“Go to your manager and say ‘in 12 months’ time I would like to be earning X salary – what do I need to do in my role and what do I need to contribute to the business to earn that salary?’,” she says.

“It might be a significant increase on what you are on at the moment.”

Devlin, author of Get the job you really want, says this approach works because it gives the employer time to prepare and both parties can set expectations together.

“It is particularly useful in small to medium organisations and those that don’t have formal structured planning processes,” she says.

LEAVE LIFESTYLE OUT OF IT

Never discuss wanting more money because of your bills, warns Lalak.

“It’s not your boss’ job to manage your lifestyle and personal budget,” she says.

She also advises not to make it about other people.

“Don’t just say ‘I have been here for a few years, lots of people are moving, I would like some more money’,” she says.

“They are taking the argument to someone else so the more information and good reasons you give them, the easier it is for them to say ‘yes’.”

Stick to logical reasons when negotiating, advises Kate Lalak. Picture: Supplied

CHANGE YOUR VIEW ON NEGOTIATING

Lalak says many people think asking for a higher salary makes them look difficult, but the process can actually be a chance to demonstrate negotiation skills to the boss.

“If you are able to go in and think creatively and find solutions for yourself, it shows you will be able to do that for the business when you do that job,” she says.

“(With a new employer) it’s actually almost a part of the interview.”

BE CONFIDENT

“People are often scared of the process so don’t back themselves but if you have done the work and planning, you know what you are asking for is reasonable,” Lalak says.

She recommends telling the boss what you hope to talk about when you set up the meeting to avoid catching them off guard or distracted; and taking notes while in the meeting so you do not have to memorise everything being said.

Kate Parker landed herself a 10 per cent increase. Picture: Supplied

Marketing director Kate Parker worked with Lalak to learn negotiating skills before asking for a pay rise last year.

She had landed a job with a new employer but was expecting a slightly higher salary so negotiated a 10 per cent increase before starting.

“A lot of women inherently don’t have the confidence to use the skills they have harnessed over many years in their career and get that fair value,” she says.

“It was just about not being scared of rejection.

“(Ask yourself,) what is the worst thing that can happen?”