The cost of living is increasing, so as things get more expensive, you naturally will want your salary to reflect that. As well as the cost of living, a lot of people go in for a pay rise after being at a company for a long time or for taking on more responsibilities. Raising the conversation about a pay rise with your manager can be daunting, and many people shy away from it for fear of rejection. After all, a lot of people do get shot down when they ask.
To avoid the embarrassment of being turned down, you need to establish whether or not you’re actually due a pay rise. Here are some tips that can help you decide if you have valid ground to ask for a pay rise on.
1. Existing Pay Structure
The first thing you should look at is your existing pay structure. If you’re being paid minimum wage and your birthday is coming up, it could be that you’re entitled to a raise in order to be compliant with the law. Your employer may not realise it’s your birthday, so it’s important you notify them before your pay bracket is due to change. The most notable example is when people turn 25 and they become entitled to the national living wage which is higher than the minimum wage for over 21’s. In this instance, you absolutely need to ask for a lawful pay rise.
Some employers pay above the minimum wage and adopt a pay band approach. The idea behind this is for people to move up the ranks and, as they learn new skills and gain new qualifications, they can earn more money. Typically, pay bands are small and you’ll work from end to the other before jumping to the next level. Companies that use broadbanding compensation work slightly differently because the brackets are broader and therefore it takes longer to move from one bracket to the next. If you’ve been stuck in the same bracket for a long time, it might be worth asking what else you can do to move up to the next and get a pay rise. If you’ve just moved into a pay bracket, you are likely not eligible for a pay rise right away, so bear timings in mind.
2. Job Title
Job titles and pay structures typically go hand in hand, but not all the time. Generally speaking, if your job title has changed, you’ve probably had a change in responsibilities which should be reflected in your pay. If you were hired as an assistant and have since progressed to a senior role but you haven’t seen a change in your pay, you need to address it with your manager.
3. Market Averages
A good way to see if you should be getting paid more is to look at what other people in your role at different companies are getting paid. If you’re getting paid below the average, bring it up with your manager. High staff turnover can be a huge issue for companies and most will want to avoid it at all costs, meaning your manager is likely to raise your pay to keep you in employment rather than lose you to another organisation.
The final thing you should ask yourself is, should you be rewarded for your loyalty? As mentioned, staff turnover can be a real issue for businesses, so most employers will bend over backwards to keep you – especially if you’ve been there for a long time. If you’ve remained in employment for more than five years, that makes you a long standing employee which means you should expect to be compensated. It makes sense that those who have been at a company the longest should be paid more than new recruits, but this doesn’t always happen. It’s hard to attract prospective employees so a lot of employers offer a high starting salary. If you realise your manager is hiring someone new to your position and they’re getting paid more than you, raise this with them and ask to be paid more since you’ve been there longer and will likely be training the new recruit anyway. You might be surprised how much more money you can get by doing this.
By taking these tips on board, you will be spared of the embarrassment when you ask for a pay rise but don’t get one because you’re not eligible. Best of luck!