Here’s how to get a pay rise in the midst of record low wage increases

AUSSIES are actually getting poorer. That’s what the latest figures say. You can do something about it, but are you willing to have that awkward conversation?

The most awkward conversation

FIGURES from the Australian Bureau of Statistics yesterday revealed Australians are actually getting poorer.

The annual wage price index showed wages rose by just 2.6 per cent, well below the inflation rate of three per cent.

It was the equal lowest result since the index began in 1997, and it means wages have actually decreased in real terms.

So, while everyone’s going backwards, is it still possible to get that pay rise you’re looking for? The answer: it depends.

Steve Shepherd, employment market analyst at global recruitment firm Randstad, says there are a few things any employee needs to keep in mind.

BE REALISTIC ABOUT YOUR EXPECTATIONS

“The first thing is to be realistic,” Mr Shepherd says. “What I mean by that is don’t be going in there looking for 20 to 30 per cent pay increases.

“That’s one of the most common mistakes we see, when people ask for vast amounts of extra money when it’s clear looking around the market that salary increases are around two to three per cent.

“People armed with these sorts of demands are probably whistling in the wrong wind unless they’ve got something substantial to back that up.”

DON’T ASK UNLESS YOU DESERVE IT

That ties directly into the next point, which is don’t ask for a pay rise unless you’ve got facts to back up your case. “You have to think about it from a business perspective,” Mr Shepherd says.

“Don’t just say, I come to work every day and do a good job so I deserve more. Ask yourself, what do I do that adds value to the business over and above what I’m already being paid for?”

He recommends providing specific examples. “Go into your meeting with business-related hard facts, specific instances where you’ve delivered a result above what you’re being paid to do now.”

BE PROFESSIONAL IN YOUR APPROACH

And while it should go without saying, remind yourself to act professionally. That means avoid issuing ultimatums. “Going in and demanding, give me this or I’ll leave, usually doesn’t work well,” Mr Shepherd says.

“It’s kind of like Russian roulette. If you’re going to play the ultimatum game then you’ve got to recognise there’s a bullet in the chamber that eventually might hit you.”

It’s also important to be aware of what’s going on in your business, he adds. “If your business is struggling and laying people off, going in and demanding a pay rise when they’re trying to work out how to keep people is probably not going to end well.”

DON’T TAKE ANYTHING PERSONALLY

It’s inevitable that at some point you will request a pay rise and be knocked back. The key is to take it on the chin and move on, rather than go away and sulk. Employers notice, Mr Shepherd says.

“Don’t take any of these conversations personally,” he says. “If they can give you one, ask for the reason why, ask for a time in the future when they might be prepared to review, and ask what you need to do in that time.

“That way you’ve got something for when you go back in six months’ time. You can say, this is what you asked me to do and here’s what I’ve achieved — I’ve lived up to my end of the bargain.”

STOP COMPARING YOURSELF TO OTHERS

Understandably, rumours that a colleague has just received a pay rise will lead you to question why you haven’t as well. According to Mr Shepherd, that’s the wrong way to think about it.

“Most people go in looking for a pay rise on the basis that they’ve heard someone else is getting more, and the scuttlebutt invariably ends up being untrue anyway,” he says.

“But what others are getting is irrelevant anyway. It’s like a football team — some players are worth more. Buddy Franklin might get $1 million but I might only get $300,000. The more value you bring, the more your value goes up.

“Companies are not unlike sports teams in that regard.”