Best ways to ask your boss for a pay rise

Asking your boss for a payrise is never an easy conversation. But if you feel you’re being undervalued then there are ways to get a boost in your bank account.

It might be one of the most awkward conversations you ever have with your boss - asking for a payrise.

While it can be intimidating, it’s essential to ask the daunting question if you feel undervalued.

An expert reveals the tips on how you could get a boost in your bank account.

WHEN IS IT A GOOD TIME TO ASK?

Career expert and Global CEO & Founder of Ignite Purpose Christina Foxwell told news.com.au that performance reviews, work anniversaries or regular catch-ups with your boss might be an ideal time to ask for a salary increase.

“If you’ve passed your probation, or every six months if you’ve got a routine conversation with your leader around your performance, it’s possibly a good idea to ask,” she said.

“If you’ve been given more responsibilities and as you are sitting down negotiating these responsibilities, and reflecting on the additional, maybe not only time that you might invest, but also the responsibility you’re carrying for the organisation might be a really good time to ask your boss for that.

“I think these moments are really important and they need to be done at the right time,”

Ms Foxwell advised to never email your leader and ambush them about a payrise because “it never works”.

Performance reviews might be an ideal time to ask for a salary increase. Picture: iStock

WHAT’S A FAIR AMOUNT TO ASK FOR?

Depending on how well your company has performed and you have done a great job, Ms Foxwell suggested asking for a 5 per cent increase but there is a catch.

“If you are asking for those really big amounts, it would probably mean you’re going to have an increasing responsibility so it needs to be backed up with some really good substance,” she said.

“If you’re going for just a good amount, probably about 10 per cent would be really out there because if you think STIs [Short Term Incentives] are about 2-3 per cent, that’s quite a lot.

“They’re not only giving you an increase in your wage, but that means they’re also going to have to increase your contribution to your pension funds, and they’re also going to have to increase payroll tax.

“When companies are giving you an increase, it’s not just what you’re getting in your back pocket.

“They’re actually increasing a whole lot more on the remuneration front that you might not be seeing straightaway.”

HOW SHOULD YOU NEGOTIATE YOUR SALARY?

When it comes to negotiating your salary, Ms Foxwell recommended these key points:

• Come in with a partnership attitude

• Be clear on what you need and why you believe you should be rewarded

• Be honest and confident

• Be willing to listen to your leader and explore your request

• Have the your value proposition with them (what you have done) and also be clear on what your market salary is worth

Asking for a 5 per cent pay increase might be fair amount. Picture: iStock

THE ADVANTAGES OF NEGOTIATING A PAY RISE

Ms Foxwell said one of the advantages of negotiating a pay rise is to get your leader to recognise the amount of work you have contributed to the company.

“The benefit is they see you as a partner and they don’t just see you as somebody who’s taking money,” she said.

“That sounds ridiculous, but if you’re looking at organisations, they like seeing people that want to be part of the fabric of the work that’s happening and part of the growth.

“Those people we always see catapult and they just do exceptionally well in an organisation. They earn well, they become part of senior leadership.

“People that just ask for a pay rise but don’t really recognise the contribution they have to make or the passion that they’ve got to commit to will often struggle to get that and then there is no real benefit because they are probably going to struggle to get that pay rise across the line.

Ms Foxwell said another benefit of asking for a pay rise is you’re increasing your personal market value.

“Should you move on in a year or so, you can actually pitch to get an increase in your new role.”

CAN YOU NEGOTIATE A FLEXIBLE WORK ARRANGEMENT?

These days, some companies offer their employees flexible working arrangements such as working from home, four day week and compressed working week.

Ms Foxwell said everything is negotiable but you do have to be clear on two things.

“You’ve just got to be incredibly clear about what you’re committing to and what your organisation is expecting from you,” she said.

“The last thing is to make sure that the team component of the work that you’ve got to do, you make time for that.

“So, if you are flexible that you are all working towards finding that flexible time where you can be together to work on programs and projects together.

“That’s I think one of the key things that really can challenge the flexible working component.”

One advantage of negotiating a pay rise is to get your leader to recognise the work you have contributed to the company. Picture: iStock

RESEARCH THE MARKET RATES

If you’re looking for an idea of the typical salary in your role, Ms Foxwell suggested looking at recruitment companies such as Michael Page and Morgan McKinley for researching salary benchmarks.

She also advised taking your findings to your leader and having a conversation with them about how much the industry standard is paying for your role. But, there might be one hitch.

“There might be some deviations around that based on the size of your organisation or maybe the seniority,” she said.

“Sometimes it’s in a band, and you might be at the bottom and so your negotiation is ‘how do I work myself to the top end of that salary band?’

“Because sometimes an organisation doesn’t have the ability to pay you that money, then you’ve got to choose, is this the best fit for you?

“Is this the kind of organisation that can actually help you grow?

“Or, are the other benefits you can get that they might not be putting in a salary that would be still worthwhile for you to work here?

NEGOTIATING COUNTER OFFERS

If you’re using counter offers as a negotiating tool, Ms Foxwell advised the tactic may not work on your boss as it leaves “a bad taste in their mouth”.

“The manager could feel a little bit rejected or it’d be like a bit of an underhanded thing that’s happened,” she said.

“I think you’ve just got to be incredibly wise if you’re using that tactic.

“If however, you have been out there looking for another role, because you want a salary increase, but also a bit more of a challenge then your company offers you something more to stay.

“Make sure it’s not just money that you’re going for, make sure that the reason why you stepped out to look for another role is really clear.

“Because if you looked out for that other role because you wanted a stretching challenge, as well as in salary or you had other reasons, make sure that when your company counter offers, what they counter offering you with is enough for you to stay and be happy.”

Look at recruitment companies for researching salary benchmarks. Picture: iStock

BEST ADVICE

Ms Foxwell said the best advice is sit down and have a look at all the things that an employee has contributed to the company.

“I think there’s some reflection they have to have in their own self,” she said.

“‘This is what I have done in the organisation. And this is why I believe I’m a valued member of your team and I’d like to ask you, if I could have [a payrise].’

“They need to have done their homework and they need to know their worth.”

She also recommended negotiating alternatives if they can’t get that salary increase such as an extra holiday, incentive trip and training.

“There’s many different ways in which you can truly try and make it worth someone’s while,” she said.

“But [as an employee] I’ve got to be clear, if I’m asking for that, and I know they can’t give me, ‘Can I negotiate on some of those other things?

“‘Can I give my manager and my organisation an opportunity to find a way to still allow me to feel that I’m being rewarded, and it’s valuable to me.’”

Originally published as Best ways to ask your boss for a pay rise