It pays to do preparation
Cara Jenkin discovers it is best to be armed with facts when negotiating a better pay deal
Workers who have been adding value to the business they work for need to back it up with hard facts before asking for a pay rise.
WORKERS who have been adding value to the business they work for need to back it up with hard facts before asking for a pay rise.
Money expert Glenda Nicholls says reasoning a pitch to your boss with “I need to pay off my car loan” or making a request at the wrong time of year can lead to instant rejection.
Nicholls, author of Complete Money Freedom – 12 Key Conversa
tions About Money, says managers or employers need to be shown how a worker’s contribution has increased business profitability if they want a greater slice of the profits.
“If you follow these steps before sitting down to discuss that pay rise, an employer who cares about the health and profitability of the business will do everything in their power to enable you to achieve your pay-rise goal,” she says.
KNOW HOW IT WORKS
Understand how the pay rise process works at your organisation.
“If it’s a large corporation, there will be specifically documented job roles and commensurate salary and rewards packages through employee awards, enterprise agreements, or maybe employee contracts, and a well-defined pay-review process,” Nicholls says. “If it’s a smaller business, the pay-rise process is likely be less formal and more flexible.”
Ask someone in the Human Resources department, or the person you report to, to find out the logistics of applying for a raise.
DEVELOP A STRATEGY
The first conversation with the person who determines your pay rate, such as your boss, should not be to ask for a pay rise.
“Start with ‘I’m keen to work at a higher level here, and be paid accordingly, so I’d love to discuss what specific outcomes I need to be working on’,” Nicholls says.
“It is a smart idea to collaborate with the decision maker/s and agree on what the measurable elements, when ticked off a list, will give a green light to your pay rise.”
CREATE A LIST TO HELP MEASURE YOUR VALUE
Make and constantly update an inventory of your measurable value.
“This would be a list of things you have done that had a positive effect on key performance indicators (KPIs),” Nicholls says.
Increased sales volumes, expense reduction, improved staff retention or increased purchases by customers are among the things to note.
“It provides evidence later for your pay-rise negotiation that you may otherwise forget,” she says.
DO MORE FOR YOUR MONEY
Demonstrate you are exceeding your current job role and responsibilities, and are performing at a higher level than is actually required.
Aim to be doing the next job up, so when you are asked why you think you deserve a pay rise, you have hard, objective evidence.
KNOW WHAT OTHERS WILL PAY
Understand market rates for your job by doing research.
“Search online for ‘salary guides Australia’ and if you discover your job is covered by an award or agreement, find out the details,” Nicholls says.
“Check out job advertisements and chat with recruitment companies. Chat with your non-work-related contacts and see what you can uncover.”