How to get a pay rise

Grocery prices are up and we’ve had multiple interest rate rises in Australia since May 2022 (with New Zealand jumping on the cash rate rise bandwagon, too).

We know from our 2023 ANZ Workforce Trends research, that many of us are feeling the financial strain, but it’s hitting young people the most. We found 83% of Gen Z (born 1993 – 2005) and 79% of Gen Y (a.k.a Millennials, born 1980 -1994) feel the need to consider alternative income streams to keep up with the rising cost of living.

What’s the solution if you’re struggling to make ends meet? Well, there are two: jump ship to a better-paying job, or ask your current manager for a pay rise. If you’re in the pay rise camp, here’s how to go about it.

Step 1: Find out your worth in the marketplace

It’s no good fronting up to your boss and asking for a pay rise. You have to do a little legwork first – and that begins with having a solid idea of what you and your role is worth in the market.

The easiest way to find out is to give your local specialist recruiter a call. They are constantly negotiating salaries on their candidates behalf and can tell you exactly what you should be asking for. Or, if you don’t feel like speaking to someone, you can always look at our latest Salary Guides. They outline the current salaries in our specialist industries by location. You can also check on sites like Glassdoor or speak to other people in your network to see if you can get any salary indications. This intel is vital before you start any salary negotiation.

Step 2. Create a list of your achievements

Selling yourself in a salary negotiation is key – and that means having hard data to show your boss. You want to document how you’ve contributed, including projects you’ve worked on that have resulted in a brilliant ROI, or how you’ve helped improve efficiency or productivity overall.

Also take note of any glowing feedback you’ve received from superiors, offer details on new skills you’ve learned and how you’ve successfully taken on more responsibility, if you have.

Step 3. Call a meeting with your manager

Whether you’re dreading the pay rise meeting or looking forward to it, recruiters warn that it’s important to be strategic about how you call the meeting and when.

Timing is everything. If you can schedule the meeting for a time that coincides with the ending of a successful project you’ve been a part of, great – your boss will potentially be more open to considering your performance and looking at whether you’re being compensated fairly.

Step 4. Pre-empt what might come up

Yep, you might dream that your manager will say, ‘Of course you deserve a pay rise! How does an extra $20k sound?’ While that would be nice, you’ll want to think about what you’ll say if they’re not so keen or have excuses as to why they can’t increase your salary.

They might say things are tough right now and there’s no room in the budget for pay rises, and you can counter with what you have managed to do for the company in this environment – perhaps getting difficult clients over the line, or how you’ve saved the company money. Be clear about why you feel your contribution should be matched by the right remuneration.

Step 5. Know what kind of pay rise you’re after

It’s not enough to go to a salary negotiation meeting and simply say that you’d like a pay rise –you need to put a figure on the table, and experts say the person who does that first is more likely to be successful in the long run.

You should also put a higher figure on than you expect to get, so there’s room to move in the negotiation. So you might want an extra $10,000 pay rise, but if you ask for $15,000 or $20,000, your manager may negotiate down and you’ll still get what you were after. Offering a figure that’s lower or closer to your ideal figure could mean they’ll end up offering less than you want.

Step 6. Consider what else you might say yes to

If your boss agrees with you but is still unable to meet the remuneration you’re asking for, they might offer you other benefits in the interim – such as extra holiday leave or flexible hours. Our research also found that young workers find their role more satisfying when they are encouraged to grow professionally. If this is something that you can relate you, you could ask your manager if this is something they would consider offering as well.

Saying yes to these offers doesn’t have to mean you’re taking the pay rise request off the table. You might negotiate to bring in a certain amount of business in the next 3 or 6 months, and ask if you can agree that you’ll have the conversation with the view to a pay increase by a certain date. Setting your intentions and putting a date in the diary with your manager is key, and if they agree, you know you’re almost certainly looking at a pay rise on that date in the future.

Are you curious about what different generations value in the workforce?

Our 2023 Workforce Trends research is now available for download. Get a comprehensive look at the workforce trends and generational priorities across Australia and New Zealand. If you’re looking for something more specific to your industry, we have those too. Click here to find out more.