Asking for a pay rise from your employer can be a tricky exercise. Success may depend on your timing, your preparation and your contribution to the company.
Provided you are confident, have done your homework and can provide justification for your case, you should go boldly after what you believe is fair, rather than dwell on your predicament.
Even though there are more women in the workforce than ever, there is still a tendency for females to be less assertive and less confident than males about confronting issues such as pay rises, Dr Susie Linder-Pelz , director of the career coaching consultancy Good Decisions , says.
She advises clients who are keen to fatten their pay packets to be clear about what is right and fair for them.
"If you believe you are entitled to a pay rise, then by all means proceed, based on issues of fairness and contribution," she says. "Base your case on your achievements, your value to your employer and your contribution to the team and do not be reticent if you feel it is justified."
To prepare your case, do plenty of homework and practise your routine with a friend or a discreet colleague. Keep notes documenting when you have been praised or when one of your recommendations has resulted in a gain for the company.
Research the policies and practices of your company and compare it with others in the industry so you are clear about what you need or want. Check salary surveys in newspapers or contact recruitment agencies to gauge your worth.
Talk not just about your past glories when applying for a rise but also about your goals. Highlight any areas of weakness and offer a solution. Consider how you can make further savings or boost business. That way you will have plenty to discuss.
As part of your preparations, contact an accountant to find out how to make the most of any tax benefits. For example, you may negotiate any bonus to be paid as salary-sacrificed superannuation contributions. These are taxed at 15 per cent rather than your full marginal rate. If your super balance is low, this could be sensible.
You may wish to negotiate a company car or other benefits such as more flexibility. A friend recently traded a pay rise for a four-day week and is experiencing more job satisfaction. As for the timing of the request, Dr Linder-Pelz believes if you have a sound case you should make the approach when you are ready, rather than wait for a surge in company profits.
When preparing your case, give plenty of thought to how you will react if your offer is rejected. Consider whether you will want to remain with the company on the same salary, whether you are prepared to move and the likelihood of getting a job elsewhere.
Remember, delivering an ultimatum may not be a good idea, particularly if you are forced to follow it through.
"Women need to think through the `no' answer and ask themselves whether they accept that and simply say, `I have given it my best shot and other things are holding me here,' or do they have a more compelling reason to move. Think through both eventualities but be aware that the language of ultimatums is never useful."
During the discussion, stay calm, appear more confident than you are by talking slowly, maintain eye contact and try not to fidget. If your heart is racing, try some deep breathing and keep your hands loosely by your sides.
If you are knocked back, ask about how you can improve your performance. Once your strengths and weaknesses have been pointed out, you can go to work on them so that next time around your pursuit of more pay will be more successful.
Ten steps to a pay rise
- Set up an appointment in advance.
- Write a formal letter listing your strengths and hand it over at the interview.
- At the interview, speak slowly, confidently and maintain eye contact.
- Make a commercial case. Saying "I'm worth it" or "I need the money" may well be true, but they're not convincing.
- Bring evidence to support your arguments such as client testimonials, a congratulatory memo, letters, emails or the like.
- Put a positive spin on things. Remember you're asking for a pay rise, not resigning.
- Ask what you can do to earn a bigger salary.
- Suggest alternatives which might fit in with the budget better, such as a bonus for meeting a target.
- Don't demand an immediate answer.
- If you don't succeed, try again in three months.
Linda Gough is an executive vicepresident with BTFunds Management. This information doesn't account for your investment objectives, particular needs orfinancial situation. These should be considered before investing and we recommend you consult a financial adviser.
