Every last quarter of the year a number of employees get busy working on their performance reviews and preparing to have the inevitable pay rise discussion with their managers. Knowing what needs to be done helps in making the whole process much easier as having this discussion is never an easy task. So let’s look at the question how to negotiate for a pay rise.
When Do Employers Review Pay
Some companies review pay on the employee’s anniversary or date of joining the company. Some not so organized employers use the squeaky wheel system—if you don’t ask for a pay rise, you don’t get one.
However, most companies make their budgets around a financial year. That means employers will soon be busy making budgets for the coming financial year, including allocating funds for the company’s existing staff and for the additional new staff.
Factors That influence a Pay Rise
There are a number of factors that influence a pay increase. The employer’s financial performance, your department’s contribution to the company’s coffers and the economy will all play a part.
The talent market’s strength also has an impact — so find out how hard you would be to replace. Talk to recruiters, industry contacts and job search as well.
Companies should also inform department heads what the range is for pay rises. For instance, one organization might set a range for salary increases of between 2 for average or poor performers to 10 per cent for the best performers. When the appraisal date comes, you will want to ask your manager what the range is so that you know how you rate.
Also try to ask your managers if pay is linked to performance. As confusing as it might seem, some organizations keep performance reviews and pay reviews separate.
It is important to note that salaries increase faster on the open job market than they do when you stay in a job. Unless, you are promoted of-course. You should raise the issue with your supervisor now It is never too early. You can say you will be preparing a written request for a pay review and ask what the process is.
Your written request should include any extra tasks you undertook in addition to what you get paid for, your achievements over the past year– and any research you can find on pay rates in your industry.
Please, can I have a pay rise?
Asking for a pay rise is a very difficult question to ask for many people and fills them with dread. I’ve heard a number of time: “But my supervisor knows what I do, why ask for a pay rise?” My response: “Because you want a pay rise.”
Managers are busy with their own tasks to note down all of your achievements. Document why you deserve a pay rise, be your own best advocate. Your manager will need to justify your pay rise to his/her supervisor so documented reasons will make the process much easier.
Document Why You Deserve a Pay Rise
Some of things you can document include managing extra people or added responsibilities. Maybe some employees resigned and you ended up with their workload. Have a look at your job description and then come up with a list of any additional tasks.
Or maybe your paycheck has fallen behind market rates. To find this out, ask friends in the same sector about salary ranges, check salary surveys on recruitment firms,talk to recruitment consultants and check with industry associations you are a member of.
Anyway you should do some job hunting to test demand for your skills, speaking to recruiters is part of this. Other things you can include are staff award nominations, letters or emails you have received for doing a great job and other commendations. Document things you did to help keep customers happy, save costs and generate revenue.
Once you are done with your document, ask your supervisor for a pay review meeting. A few days beforehand make sure you email your pitch. By the time you finally meet, half of the work is done. Rehearse the pitch, the manager might ask you to talk through it, but hopefully they’ll have gone through it. If your supervisor doesn’t call for a meeting, follow them up — nicely. Hope we have answered the question how to negotiate for a pay rise? We wish you all the best