Negotiating when everyone gets a pay rise except you

Sadly for some, being the only person to have their wage remain the same while colleagues receive a boost is a reality.

Negotiating pay to meet your bills is stressful.

Being left out of a group action or decision is never much fun and there’s possibly nothing worse than when it’s one involving a pay rise.

Sadly for some, being the only person to have their wage remain the same while colleagues receive a boost is a reality. And it’s one that may be more common this financial year when an annual pay rise will be out of the picture for almost half the Australian workforce.

Almost 50 per cent of companies have confirmed employees will not be offered a wage increase. What’s more, almost 40 per cent of companies are considering lay-offs, something familiar to many Australians across the past 18 months, especially those working in global tech firms.

Missing out on a pay rise is never nice but one expert says workers shouldn’t accept their fate without a fight, and in some cases the pay-off could arrive in more than just cash.

Gartner vice-president of research and advisory Aaron McEwan says employers long have underestimated the willingness of employees to share remuneration amounts. The days of workers being sheepish over their wages are long gone, he says.

“It’s a big lesson in the age of radicals; you need to just assume your employees are sharing information about how they’re paid and that it’s being shared widely,” he says.

McEwan says the past few years have shown just how willing employees are to share their pay stories – both those involving horror and delight – on social media, with many giving detailed reviews on platforms such as TikTok.

“I don’t think Australian organisations are necessarily aware of the level at which people are sharing these details online,” McEwan says.

“A lot of organisations are focused on monitoring their employees when what is happening in the background is actually a rise in the number of employees monitoring their employers.”

Here are some of McEwan’s tips on how to negotiate a pay rise.

TIMING

When it comes to asking for a pay rise, McEwan says workers need to plan their approach thoroughly.

“Timing is everything. There are good times to ask for pay rises and there are not-so-good times,” he says. “Given the current economic cycle, now is one of those times where it is more risky. Timing is a big factor.”

HOMEWORK

Once you have mapped out your plan of attack (when to ask, how much to ask for), you need to do your research.

A solid argument, a thorough understanding of your contribution to an organisation, revenue and customer retention are major selling points, McEwan says.

“Keep things clear, simple and to the point, and as dispassionate as you can,” he says.

“Understand why a pay rise should be justified. Rightly or wrongly, unfortunately, cost-of-living pressure or increases in mortgage payments are not going to carry as much weight as one might think.”

MARKET RATE

One of the best weapons an employee can have is knowledge of the value of their role at other companies.

“You should go in armed with knowledge about what your position is worth in the market. If you’re able to demonstrate that your pay is well outside of the range being offered, you’ll have a strong case,” McEwan says.

ALTERNATIVE OFFERS

If a pay rise is knocked back, McEwan says, employees should consider what else they can ask for from their employer.

“Pay is sometimes a difficult thing for organisations to change. Internally it can be a complex process which requires many approvals and sign-offs,” he says.

Asking for additional leave with as much as five weeks annually, or reduced hours, is becoming more common, Gartner says.

“Organisations are finding it difficult to come up with the money to increase pay but to reduce the hours that employees have to work is not out of the question,” McEwan says.

“In fact, those requests are increasingly common nowadays.”

Car allowances, travel allowances and reimbursement for work-from-home expenses are all being paid by employers, Gartner has found.

“In the current climate of high interest rates, benefits other than pay are kind of cold comfort for a lot of employees, but now you might end up with more bargaining power around those things,” McEwan says.

On pay more broadly, Gartner is watching as action regarding pay equity is becoming increasingly common.

“The days of salaries and compensation packages being something that you don’t talk about and that employees don’t share, those days are over,” McEwan says.

“Companies should assume employees are sharing these things more openly. Chances are your employees are certainly aware of pay inequity and will expect you to address them.

“If you have a significant gap between the pay of men and women, employees will eventually look to work elsewhere.”

Another area in the pay equity market that is becoming more talked about is the cultural pay gap. The Deal revealed in April that ethnic women received as much as 36 per cent less than their Anglo male counterparts, while ethnic men received 16 per cent to 20 per cent less.

The difference between Anglo women and ethnic women was at least 15 per cent, MindTribes chief executive Div Pillay says.

Cultural pay gaps didn’t typically occur at entry levels in office jobs, they were more phenomena that took place across time, Gartner has found.

“Cultural pay gaps are a really significant issue and they’re challenging, too,” McEwan says.

“The things that lead to those discrepancies over time are not always as obvious. Things that can lead to cultural pay gaps are limited chances for promotion or to take on opportunities which lead to pay rise. It’s a bit of an insidious problem. At the root of it is widespread discrimination.”

The fastest way to get a pay rise for now hasn’t changed, despite issues organisations are facing regarding retention, McEwan says.

“One of the things we know is that your best chance of getting a pay rise is to switch jobs.”