How much of a pay rise workers should ask their employer for in 2021

If you didn’t get a pay rise last year, can you ask for double this year to make up for that? Recruiters reveal their advice.

CAREERS’ panel of expert recruiters answers a reader’s question each week. Have a question? Email [e-mail]

I didn’t get a pay rise last year. Can I ask for double this year to make up for it?

Megan Nicholson

General manager

Entree Recruitment

A pay increase is at the discretion of the employer and not necessarily an entitlement, unless you have a clause in your contract or you are under an award or enterprise agreement. If you feel you are entitled to a pay rise it is best to present your case to your employer objectively and professionally. Have your responsibilities changed? Have you taken on extra work? Or has the market rate for your role increased? If the employer can’t meet your expectations with a pay rise, you could speak to them about a performance-related bonus or pay increase measured on agreed achievements. It is better to highlight the benefits of you increasing performance or responsibilities instead of asking for more money to do the same role.

Megan Nicholson says a pay increase is not necessarily an entitlement.

Andrew Sullivan

Managing director,

Sullivan Consulting

As the financial insecurities and pressures associated with the Covid-19 pandemic have begun easing, some businesses may be more willing to give raises than they were last year. However, the appropriateness of asking for one depends on the conditions within the company. For example, it may be inappropriate if the business has been struggling or still adjusting to trading in the new way of life in which we find ourselves, so judge at your own discretion. Instead of asking for double, I would recommend researching the salary figures of similar jobs in your industry to see how your current pay matches up. If you find that you’re being paid less than others, use your research to inform the amount asked for.

Andrew Sullivan says workers should research what others in similar jobs are being paid and see if their salary matches up with it.

Alexandra Rosser

Head of Organisational Psychology Consulting,

Stillwell Management Consultants

Given the impact of COVID-19 in 2020, a lot of businesses were not in a financial position to provide pay rises to their staff and for many, that is still the case. Beyond Award and enterprise agreements, employers generally have discretion to determine whether or not to grant pay rises in any given year but will often grant at least CPI increases. Given this discretion and the effects of COVID-19, a request for a double pay increase is unlikely to be welcomed.

Alexandra Rosser says many businesses still are in the financial position that they cannot provide pay rises to staff this year.

Lisa Morris

Director,

Hays

While you may want to make up for last year’s salary stability, we do not recommend asking your employer to double your pay rise this year. Australia’s economic recovery has been stronger than anticipated, with employers navigating their way out of the pandemic back to growth. But despite this positivity, budgets remain tight. So, while employers are reviewing salaries, the value of salary increases is low. According to our Hays Salary Guide, released last month, almost seven in 10 employers will increase salaries in their next review. However, for many, the value of their salary increase will fail to live up to their expectations. If you feel your performance over the past year warrants a higher pay rise, you could consider asking your boss for additional benefits instead, such as continued or additional flexibility or additional days off. Or you could ask for training, development and career progression opportunities.

Lisa Morris says additional benefits may be a better request than an increase in salary.

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Originally published as How much of a pay rise workers should ask their employer for in 2021