This week we want to talk to you all about something terrifying. Something nightmares are made of. No, it’s not deranged clowns or sunflowers with faces on them (maybe that last one is just me), it is asking for a pay rise (cue scary music).

 As intimidating as this process can be, it is important to get pay rises. Every year the cost of living goes up, and inflation affects everything you buy, from the cost of a loaf of bread to transport and education. If your wage stays stagnant, you are actually falling behind. So even though it can be intimidating and scary, if you don’t ask, you don’t get, so let’s get better at asking.

Women can sometimes pluck up the courage to ask for a pay rise, but when it comes to talking about their reason for a pay rise, they tend to talk about why they need the money. They say things like:

Can I please have a pay rise my rent has gone up, and I can’t afford it, and I need more money.

This doesn’t resonate with employers. Don’t do this. The conversation should be about what you bring to the team and the value you bring. Not your own personal financial situation.

So we know it is important to ask for a pay rise, but how should you actually do it? An important step to take before you begin the conversation is to take the time to think and write down the value you bring to your role. What skills and experience do you bring to the job?

• Experience. Have you been in this job (or similar jobs) for a while? Are you more efficient and productive than when you first started or do you take less time than your peers to do the same role? Have you picked up additional skills?
• Education. Do you have qualifications that are relevant to your job? It doesn’t have to be a degree but do you have a certificate 4 in hospitality and are going for a job in a café?
• Do you mentor or train other staff? Do you increase the productivity of other staff members? Are you a good team player?

Think about what you bring to the team and what your boss values in you. You need to be prepared for the conversation. But this conversation doesn’t have to be hard or long or difficult. 

Remember to be confident. It can be as easy as a conversation with your boss that goes a little something like this. 

You: “I’ve been thinking about my role. It’s been a little while since my wage was reviewed.  Given I just finished my diploma/or my role now includes (insert task here), what are the chances of my pay going up $2000 a year?”

If you are asking for a pay rise, we suggest you ask for between $2000 to $5000 more than you’re already being paid, depending on how much you currently earn. This is not a whole lot of money spread over a year, so it won’t sound like an outrageous request to your boss. But that’s just a rule of thumb, and if you are on a six-figure income or have more experience, or there is a real cost-benefit for your boss to give you a more significant pay rise, then we say go for it.

Just one word of warning, though, make sure you don’t make it an ultimatum. You are not saying, give me more money or I will leave. You are saying, hey because of this reason, I think I’m worth more money to you. If your employer says no, that’s fine. Just don’t leave it there, follow it up with a question like, when would you be open to a review? How does in 6 months sound?

Assuming they agree, book it into both your and their calendar if you can so the conversation doesn’t get forgotten. We want you to go for it and not be too worried about your employer saying no. One thing that is for sure, if you don’t ask, you don’t get.

What if you pluck up all of your courage and you get your thoughts together, and you think you’re worth more than what they’re paying you right now. You then booked the time with your manager, and you have the conversation, and you’re confident, and your manager says no……?????? Well, I don’t think that that’s such a bad outcome anyway. You need to be proud of yourself for having the conversation and for pushing past your discomfort and asking anyway.

But I also want you to remember that it’s not only cash in your account that can be negotiated. 

If your manager is unable to give you a pay rise because of business restraints or a tight fiscal environment, a “no” might be an understandable answer. But there are other things that you could ask for when a direct pay rise isn’t on the table. 

• Paying for study: You could ask for your work to pay for or subsidise some study, which is related to the job you are doing. If you want to go to university and you’re working in a business, and you want to study a business-related course or degree. It could be that your work is okay with paying for all or some of your course or university fees. I had some friends in university who did this, and they had a contract with their employer that once they had completed university they would then go back and work for that employer for a number of years, maybe 3 to 5 years. But for them, they were happy to do it. The employer was helping them get through Uni and was guaranteeing themselves a workforce for a couple of years afterwards. Arrangements like these can be beneficial for both parties resulting in a win/win. But make sure you read the fine print. Some of these arrangements require you to pass subjects, and if you fail, you are required to pay the money back to the company. So take it seriously and study hard.
• Extra super: In Australia, employers must put a percentage of your wage into your nominated superannuation account. But an alternative option to a pay rise to your salary that goes directly into your bank account is to ask for an increase in the rate of superannuation that is paid as part of your overall package. Given the power of compound interest, even 1% or 2% additional money into your super account over the years could add up to a whole lot of money when you retire.
• More recreational leave. It’s standard in Australia in full time, ongoing employment for people to be eligible for 4 weeks rec leave a year. Some industries receive more leave than this, such as police officers and teachers. If you can’t increase your base pay, consider negotiating an extra week of annual leave each year. It’s not extra money in your bank account, but it means that you have more time and resources to do the things that you value whether it’s travelling or taking holidays, having the odd paid day here and there to recharge your batteries, or if you have children, being able to take more time off during the school holidays rather than having to pay for expensive school holiday programs or take leave without pay.

So what about if you’ve taken a job and you’re under a collective agreement or an enterprise agreement? Which means you don’t get to negotiate your pay rate. Instead, you’re categorised, and you’re given a rate of pay. Even within these quite formal pay structures, there is a range. You might start at the bottom of the range, and you could be on something like $54,000 a year. The top of the range could be something like $62,000. So even in set formal pay structures, there is likely still the ability to negotiate.  Instead of starting on the base salary perhaps you could negotiate to start one increment up, so maybe starting at $56,000.

Any extra money that you can negotiate is not just extra money in your salary every payday. It also means additional money into your super. A higher wage means your employer’s contribution into your super account is also boosted. 

Let’s be brave and ask!!!!!!!