How To Ask For A Pay Rise In Australia: A Step-by-Step Guide

Do you believe you deserve more pay for your effort and want to do something about it? Then, you have two choices: finding a new job or asking for a pay hike.

Asking your manager or supervisor to increase your salary may look simple, but getting them to do it require careful planning and strategy.

This blog discusses the proper steps you need to take to maximize your chances of getting a raise and improve your worth as an employee.

1. Steps To Ask For A Pay Rise 

We have broken down each stage of the salary review process to give you the best chance to convince your boss of your true worth. 

Step 1: Analyze The Reason You Are Asking For A Raise

It is essential because if you do it for the right reasons, the chance of acceptance is high. Some of the good reasons to ask for a pay rise include the following:

• Your performance has increased.

• You exceeded expectations and achieved the challenging goals. 

• You have completed extra training and developed new and relevant skills.

• Your workload has increased, or your role has expanded. 

• You are a reliable employee who regularly meets work deadlines and produces quality work.

• You display leadership and initiative-taking abilities.

• Your experience has increased from the time you received your last pay hike. 

• You believe your salary is lesser than the industry average.

• You train your subordinates.

Step 2: Choose The Right Time To Ask

• Check the current market state and the company's financial health. It is not a good time to ask for a raise if you see signs such as layoffs, cost cutting, etc. However, if you see your company is making good profits and has been experiencing a skills shortage, it tends to push up pay rates.

• Learn about your company's policy on raises. Some companies only give out salary increments during performance reviews; others are more open to giving raises as required. You should check with HR to learn more about your company's policies.

• Check comparable salaries. Compare your pay with others working in the same city, with the same experience, education, and skillset. If you are already positioned at the top of the pay range, you may need to wait for some time before getting your raise.

Step 3: Set A Reasonable Salary Expectation

• Review job sites like Glassdoor and Totaljobs to learn about average salaries for your position, experience level, and location.

• Use a salary calculator. The tool uses carefully coded algorithms to show you what you can reasonably expect to earn based on industry averages.

• Speak to local recruiters. Recruitment consultants have strong knowledge of what local businesses are willing to pay. They have experience in negotiating deals for specific candidates.

Step 4: Look At The Specifics

Once you have gained clarity of your value, focus on how to make a business case to get a pay raise.

Achievements

• Training and qualifications. Have you earned any certified qualifications by industry bodies/academic institutions in the past year?

• Know your strengths. Do you have transferable skills and the ability to build strong client relationships that distinguish you from the rest? Are you the only one to operate specific software or machinery? It shows you are essential to the company. 

• Job milestones. Have you helped the company achieve high sales figures, make financial savings, or win new clients? It indicates your undeniable value and gives you an excellent chance to justify a higher-than-standard salary.

• Innovations. Have you helped the team to introduce new system software or management structures? Then it is a good reason for a company to rely on you and offer you a pay raise.

Soft Skills

Besides facts and figures, your soft skills also show your worth: teamwork, timekeeping, and work flexibility (readiness to travel, working overtime, and adaptability to client demands). 

Market Value

Find the things that lift your market value, and make you hard to replace. Some of these could be:

• Skill shortages

• Transferable skills

• High demand for your role

Step 5: Set The Meeting

Book a time with your manager to present your case for a salary review. Stay professional throughout the meeting. Take charge, but stay calm, composed, and focused.

Present all factual information to support your pay rise request, such as your performance appraisals, supporting documents, and past achievements and how they have impacted the company/ department.

Discuss your reasons from the outset and then actively listen and take on valuable feedback from the boss. It can help improve your work efficiency in the future.

Finally, tell your boss you will follow up with an email about your request. Ensure your email is a clear, concise, and accurate summary of the key points discussed in the meeting to prevent any confusion.

Step 6: Be Ready To Negotiate The Value Of Your Salary Increment

Your boss may want to negotiate the value of your pay rise. Consider how much you are willing to compromise. It is good to have a salary range with a maximum and a minimum amount that you think would be fair. 

Step 8: Have A Contingency Plan 

An alternate plan is helpful if your boss disapproves your request and delays the salary review for three or six months.

In that scenario, you can ask your boss to offer additional benefits instead of a pay rise, such as paying for training or membership in a professional body, providing additional annual leave, or providing workplace flexibility.

7. Do's and Don'ts When Asking For A Pay Rise

Here is a complete list of Do's and Don'ts to help you sail through this complex phase and achieve success:

Do's

• Calculate how valuable you are as a professional, as what you earn isn't based on how complex your job is but on how easy it is to replace you. 

• Present your long-term career goals to your reporting manager and how they will benefit the company. You may even offer them to take on more of their vital work to spend more of your skills and time helping the business. 

• Be positive and confident. Have faith that you deserve a pay rise, and convey your intent with the right tone, words, and attitude. 

• Provide your request in writing, along with comparable salary ranges and the value your firm will derive from your efforts. 

• Identify the right time to meet face-to-face with your boss to submit your pay-rise request.  

• Prepare your thoughts and rehearse your script before the negotiation. Visualizing the flow of communication with your boss can help.  

• Be flexible in negotiating the value of your pay rise. 

• Stick to the facts, and stay professional throughout

• Be prepared for a No. Though a good employer will provide you with the reasons for not granting you the pay hike, if not, you can politely ask them the same. Listen and take on feedback constructively. 

• If your request is accepted, stay professional and grateful, and keep up the excellent work.            

Don'ts 

Don't ask for a pay rise if:

• Your house rent and personal expenses have risen.

• You have spent a long time in the company.

• Your co-worker's salary is more.

• You make unjustified requests without providing facts, testimonials, or supporting documentation that proves your increased worth to the business.

• You ask for an unreasonable salary increment compared with market value.

• You expect an answer immediately after asking for a pay rise. Your boss will need to review their budget, discuss with HR and draft the necessary documentation before offering you a potential pay rise. 

• You get harsh in your tone or emotional during the conversation.

• Employees must know what not to say when asking for a raise. It is a strict No to offer a request to leave the company if you don't get the desired pay hike.  

8. Frequently Aksed Questions (FAQs)

When Should You Ask For A Pay Rise?

Timing plays a crucial role in approving your pay-raise request. In many businesses, it is convenient or natural to talk about pay rise when:

• At the end of a financial year (usually at the end of June), when employers are likely to make hiring and compensation plans for the next year

• During a successful quarter

• On or before the anniversary of your employment service

• You have reached an impressive milestone or outperformed, and your boss is happy with your performance.

• When the company achieves its goals and targets. 

• When you can justify that you have upskilled, your role has expanded, or your duties have increased.

• When you can showcase a higher level of efficiency that can help boost the revenue generation of the company 

• Only ask for a raise when the company has recently laid off employees, your boss is undergoing a difficult personal situation, or your department has low quarterly numbers. 

How Much Should I Ask For A Pay Rise In Australia?

So, what is a fair pay rise? If your job responsibilities have widened, or your performance merits a boost, you can ask for a standard pay of 3%. A good salary hike ranges from 4.5% to 5%, and anything above it is considered extraordinary.

However, you may ask for a higher raise if your job duties have changed substantially. Remember, the higher percentage of the pay hike you request, the better your reasons need to be.

For example, if you accepted a position that involves travel for half the time, asking for 10% isn't unreasonable.

How Often Should You Get A Pay Rise In Australia?

After serving for a long time in a company, it is obvious to expect an increase in your earnings. Although your employers may know the right time to raise your salary, asking for it yourself is okay.

If you have recently joined a company, you should wait for at least six months before requesting a pay hike. However, most employers would be more inclined to consider your case when you have worked for a year or more.

So, are you entitled to a pay rise every year in Australia? Yes. However, along with considering the time spent on the job, assess your annual performance before submitting a salary raise request.

Ensure your performance shows commitment and the calibre to take the organization to the next level.

How Do I Deal With Not Getting A Raise?

People ask: Should I quit if I don't get a raise? If you have a valid reason for a pay rise, but your manager doesn't approve it, then you can ask for alternative benefits over a higher salary:

• More workplace flexibility

• Flexible working hours

• Training

• Holiday time

Having a plan B ready helps you present it before the manager if your initial request fails to sanction.

How To Ask For A Pay Rise After Six Months?

What you say and how you say it is crucial, especially when heading for a salary discussion. If you want to know how to ask for a pay rise in writing, then the below script can guide you.

Step 1: Begin with what you like the most in your role. Express your joy of being a part of the team and the pride you feel working in the position in the company.

"Thanks for taking out the time to meet with me today. I have been working in the organization for x years and performing x duties. It has been a pleasure working in the team and playing a role in this organization."

Step 2: State your achievements and milestones you have achieved in the last 12 months. Mention in what ways they have benefitted the company.

"Over the past months, I have accomplished many important projects contributing to the company's revenue. I have learned a lot and helped equip the team with the tools needed to grow the client base."

Step 3: Having shown how contented you are working in the role and a positive annual performance, be direct and honest in expressing your intent of a salary review. 

"Considering my achievements and the value I have brought to the organization lately, I would appreciate it if you could consider a salary appraisal. I have looked at similar roles in companies of the same size and have gained a clear view of the industry standard compensation."

It is when your manager will need some time to evaluate your potential for a pay raise and will discuss the same with a concerned team of members before making a decision.

Step 4: End your email thanking the manager and asking him about any further conversations required concerning salary review.

Asking for more money can be daunting, but with the above "how to ask for a pay rise example," you can feel more assured and better set for success.        

How Do You Ask For A Pay Rise in an Email?

Gone are the days when employees needed to request a raise only in person. In today's workplace, as people frequently communicate via email, asking for a raise using this mode is a perfectly acceptable way to start a conversation with your boss. It also helps keep a written record of the communication.

To get a positive response, you must know the right way to do it. Instead of only asking for the money upfront, use the opportunity to discuss your salary, present your case better and negotiate in person.

Here are a few tips to guide you on writing a pitch email for pay raise:

1. Research your worth before asking for a raise. It will help you with how much to request and assure you to back up your request.

2. Keep it short and precise.

3. Be professional.

4. Use specific examples of your accomplishments and how they have benefited the company. Also include data to support your case.

5. Be polite and humble, and maintain a respectful tone throughout the email.

6. Be prepared to negotiate.

7. After you send an email, follow up with a meeting to discuss the salary increment further.

8. Lastly, don't forget to express your gratitude and appreciation for their time.

Don't get discouraged if your boss doesn't approve your request. Instead, use it as an opportunity to discuss what extra efforts you require to earn a raise in the future.

How To Ask For A Pay Rise In A Performance Review?

You will only get a pay raise if you ask for it. However, there are specific times better than others for salary appraisal. A performance review is among the best times.

The ideal way to prepare for your year-end reviews is by building a solid case based on your performance.

Here are some ways to help you gear up for the salary discussion:

Keep Aside Modesty

Though many employees feel shy to discuss money or their achievements, the performance review is the right time to bring up both subjects. There is no harm in getting a bit selfish and presenting your accomplishments in the meeting.

Know Your Standing and Talk About The Impact of Your Work

More than your accomplishments in the past year, focus on its economic impact on the company. Discuss how your work has improved the company's profits, market reach, customer retention, sales, or revenue growth.

Determine Your Current Market Value

Your pay should reflect value. It will help if you consider where you are on the pay scale and how many possibilities you have for growth. Research how much your peers earn working in your position, in similar roles, with equivalent qualifications, and in the same city.

Use Salary databases such as Glassdoor and PayScale to know how much is reasonable to ask for per average industry standards. You can even talk to recruiters to get reliable insight into what type of salary range makes sense based on other salaries they have seen recently.

Make Sure Your Performance Is Good

There is no point in discussing a salary hike if your performance was not good and you got negative feedback. If that is the case, don't ask for more money. Besides your performance, consider the company's current performance and profitability before you stake a claim on a raise.

Set Your Financial Situation Aside

Refrain from discussing inflation, rising rent, or increasing living expenses when you ask for a raise. Remember that your financial situation won't move your manager. What will make him move is the possibility of losing a valued employee if you don't get an increment.

Be Prepared For a NO

If your boss comes up with objections or demands additional specifics, be prepared with answers and explanations. It happens when they want to know how much value they get before committing further resources. If they decline your request, don't take it to your heart! Be ready with alternatives in mind. 

How Long Should You Work Without A Raise?

If, even after delivering exceptional value, your boss denies you whenever you ask for a raise, then it may be time to consider other opportunities. 

Going three or more years without a raise creates a risky pattern for your career. Recruiting companies prefer candidates who have progressed in their previous employment, and an increased salary indicates progression.

8. Conclusion

It is obvious to feel nervous and uncomfortable asking for a salary raise. However, you can confidently initiate the conversation by researching and equipping yourself with facts.

Understanding your value as an employee and your competition and applying the right strategy will enhance the chances of approval.

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