Research shows more Aussies being granted a raise when they ask

AUSSIES looking for a payrise should go ahead and ask their boss, but not before building a good case.

OVERACHIEVERS in the workplace are most likely to be granted a pay rise but simply asking for one may give workers their best chance of all.

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It is despite a greater proportion of workers who have asked for a pay rise in the past year being declined compared to the previous 12 months.

The 2017 Hays Salary Guide reveals only 32 per cent of workers have asked for a pay rise in the past year — up from 29 per cent the previous year.

The percentage being knocked back also has increased, from 12 per cent to 15 per cent, leaving the same percentage (17 per cent) with more money in their pocket.

In 2016, 41 per cent of workers had envisaged asking for a pay rise in their next review, so many failed to follow through with their plan.

This year, 45 per cent plan to ask for pay rise during their next review.

Still, the Guide shows almost two-thirds of the workforce has not asked for more money in the past year, yet more who ask have received a raise than those who do not ask.

Stillwell Management Consultants head of organisational psychology consulting Alexandra Rosser said workers who exceeded key performance indicators, or went beyond their job description, were the ones who would be rewarded by their employer.

“Employers are going to be looking at someone who is prepared to ask for a pay rise and have done the research and pitch for that,” she said.

“With the economy the way it is ... it’s not the time when a pay rise is being freely handed out.

“If you’re asking for a pay rise, the more you can quantify your achievements, the better.

“Where you can, put an actual number around what you’ve saved through efficiency, what revenue you’ve brought in or extra clients to the business, or finding a new area of business.”

Ms Rosser said increasingly employers were rewarding workers who could contribute to business strategy outside of their specific area.

“It may be identifying a technology that can be brought into the business that can be of benefit to everyone; coming up with a new product or service; investigating a new geographical area they haven’t gone into yet; streamlining processes,” she said.

Workers who had uncommon yet in-demand talents and skills, who regularly came up with good ideas; and were eager to learn new skills and put their hand up for opportunities also had a tendency to be rewarded, she said.

David Morgan gets help from daughter Olivia while doing his homework. Pics Adam Head

“An employer is going to be more accepting if you’ve done the research, and if you’ve got a clear idea of what the remuneration should look like,” Ms Rosser said.

“Going in with a specific figure is a good idea. It looks like you’re done the research and you’ve analysed what that figure should look like.”

She said to suggest a higher figure from a desired pay range, as employers had a tendency to counteroffer close to the first figure suggested in a negotiation.

Hays’ Salary Guide reveals 75 per cent of employers expect business activity to rise this financial year, up from 70 per cent in 2016.

The likelihood employers will grant a raise has slightly increased — 89 per cent of employers intend to do so, compared to 88 per cent last year — but still about two-thirds (65 per cent) of employers plan to increase salaries by less than 3 per cent.

Hays Australia and New Zealand managing director Nick Deligiannis said to compensate, employees now were savvy enough to look at what else their boss could offer them.

“A cautious approach to salary increases prevails, triggering a much greater focus from employees on the benefits available to them in their current or potential new role,” he said.

“Employees want benefits that are relevant and add value since salary increases are sedate.

“With headcounts increasing, employers also need to review the benefits on offer as part of their attraction and retention strategy.”

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Workers may not have much luck asking for a company car or even parking subsidies, with fewer receiving those benefits in 2017 compared to 2016.

However, more workers are able to salary sacrifice, more are having private expenses reimbursed, and more are receiving private health insurance from their employer.

In terms of extra cash — more staff can access bonuses — 43 per cent of employers offer a bonus to at least half their workforce, compared to 39 per cent a year ago.

When it comes to non-financial benefits, most workers want more time off — 59 per cent would like more than 20 days of annual leave a year, while 55 per cent would like a day off for their birthday.

Career progression opportunities (49 per cent), financial support for study (38 per cent) and ongoing learning and development (35 per cent) are all benefits workers currently do not receive but would like to, and rate higher than on-site childcare (29 per cent) and free or subsidised food (34 per cent).

David Morgan furthered his education and therefore his career. Pictured at home with wife Jacquie and kids Olivia 4 and Eloise 1. Pics Adam Head

Returning to study has already paid off for father-of-two David Morgan.

He finished his Master of Business Administration in July, taking 5½ years of part-time study at The University of Queensland Business School.

The School was last year ranked number 1 in global rankings for graduate salaries post-MBA by international finance media.

Morgan decided to complete further study after he made a career change from the police service into consulting and realised he did not have all the technical skills to develop a successful career.

“Professionally and personally, it’s been a great investment,” he says.

“If you look purely at the numbers, my increase in salary in the period of time that I’ve been studying has already paid for the course and I’ve only just graduated, it’s a bit of a no brainier really.

“I’ve also gained soft skills as well as technical skills through the course.

“You meet so many people from all walks of life and business — engineers, doctors, accountants, lawyers, people in the construction industry — there’s people doing an MBA that have come from all corners of work and society.

“It just opens your eyes up and broadens your horizons and broadens your skills in business.”

Since he began studying, he has moved into a new job as forensic and risk principal at PKF.

“It was a step up into a commercial, business development role. There’s no doubt that my MBA has been a big part of that progression,” he says.

Morgan says the flexible study options offered by UQ Business School, such as weekend and evening classes, and intensive subject options, helped him fit study around his work and family commitments.

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“Juggling that around family and career has taken a bit of time but certainly worth it,” he says.

“My wife Jacquie has been a huge support during the journey with evening and weekend study — that is a critical success-factor when you are trying to balance study, career and family commitments.”

Morgan says it is important to choose the right course before starting one, ensuring it provides the desired skills and career outcomes.

Originally published as Research shows more Aussies being granted a raise when they ask