Most of us want more money, and if you’ve been in your job for a while or your responsibilities have increased or changed, then it’s reasonable to have a conversation about what you’re paid. However, so many people find it difficult to ask their boss for a pay rise. So, how do you go about it?
How do I approach my boss to ask for a pay rise?
Let’s start with a step-by-step approach. In literal terms, how do you go about asking for a pay rise?
- Identify the right person to talk to: Is it your manager? The HR department? The CEO? More than one person? Whoever you need to speak to, be respectful and make sure you’re not going over someone’s head when you shouldn’t – at least not without speaking to them first.
- Give them a bit of warning. Ask for a meeting and tell them what it’s about.
- Choose your time carefully. Consider your timing both in terms of how long you’ve been at the company, the point in the fiscal year and when the company does its performance reviews.
- Make sure you have a justifiable reason for wanting a pay rise. Ideally, you should be exceeding your key performance indicators. If you have feedback on how you’re doing at work that you can bring to the table then all the better.
- Don’t make your reasons personal if possible. It’s not your boss’s problem if you have a new mortgage or are planning a wedding, so try not to make this part of the conversation.
- Think about the company’s financial position. If you know they’re having a hiring freeze or are in financial difficulties, it’s not a good time to negotiate salaries. Also, be prepared for it to take more than one conversation or for a decision to take a little time.
- Be realistic. Make sure what you’re asking for is commensurate with your job role within the wider industry.
- Be confident. If you’re doing a good job then the chances are that your boss will want to make sure you’re happy, and if they can afford to increase your salary they will. Don’t brag, but don’t be humble either – present your case including your skills and contributions to the company. You’re all on the same team, so it’s ok to ask for what you need to keep doing the best job possible.
- Be friendly. Don’t underestimate the power of likeability. In The Guardian, organisational psychologist Dr Lynda Folan recommended that you spend: “the first 30% of your allotted meeting time building a rapport with your boss by chatting to them about their life or their interests outside work. ‘We respond way better to someone we feel like we connect with,’ she says.”
When to ask for a pay rise
Timing is everything, and there are a few things to consider when it comes to the timing of asking for a pay rise.
- How long have you been at the company?
- Do you have a performance review coming up?
- Have you had a pay rise recently?
These are basic things to consider, but the most important thing is to ask for a salary increase when you can show your value to your employer – preferably in a measurable way, such as performance targets.
Laura Kingston, director of Leap Career Coaching told The Money Edit: “presenting your case with ‘facts and evidence rather than thoughts and feelings’ will improve your chances, as ‘quantitative data can be powerful to back up your case’.”
How much is acceptable to ask for a pay rise?
The amount you ask for in a pay rise can vary according to a number of things. Some of this is about specifics – your performance, if something has fundamentally changed about your job (you’ve been asked to do more), your skillset (you’ve gained qualifications) or the company as a whole (the general company workload has increased because the company is doing well).
However, as a rule of thumb, asking for between a 10% to 20% increase in your current salary is a reasonable expectation. As mentioned, it’s a good idea to do your research and check what the going rate is for your job in other companies. Platforms like Glassdoor will give you a good idea. You can also ask your HR department for the current salary bands for your role, or speak to a recruitment consultant about the kind of salary you could command if you looked for an equivalent job. Of course, with so many job sites around, including LinkedIn, a bit of online research should also give you a good idea of where your salary sits in comparison to other people doing a similar job.
Once you have that information, Davinia Tomlinson, the founder of rainchq, a financial education website for women, also told The Guardian: “Then use this as a benchmark for your own negotiation.”
What not to say when asking for a pay rise?
No manager or business owner likes to be told that they have to do something, and criticising or demanding is generally a good way to put someone’s back up. So, when you do approach your boss for a pay rise try to avoid phrases like:
- I deserve…
- X is making more than me
- I’m overdue a pay rise
- I will leave if I don’t get a pay rise
Even if you feel these are the case, try to approach your boss in a positive way rather than a critical one.
Is it cheeky to ask for a pay rise?
No, it’s not cheeky to ask for a pay rise. If you have justifiable reasons for asking for one then it probably means that it’s a reasonable request. However, be honest with yourself before you ask – is the request reasonable or do you just want it?
Bosses are people too, and they not only know their team needs to feel good about what they’re earning, but they want to keep good people within their organisation. Part of their commitment to their stakeholders is making sure the company is successful, and top talent is part of that.
One of the biggest reasons people choose to leave their job is because they’re not happy with their salary. It’s costly to recruit new members of staff and that’s if you can find the talent in the first place. Great people are hard to find, so bosses are generally open to constructive conversations that will keep valuable team members within their business.
Knowing that, when you approach your boss, make sure you think about how your boss is going to see your request and the way you put it to them. Will it make sense for them as well as you?
What if your boss says no to a pay rise?
As we’ve already said, when you ask for a pay rise you should be prepared to let your boss think about it. The chances of getting it right away are slim. There’s also the chance that they will say no for now. That doesn’t mean that you won’t get one at some point, but what should you do in the interim?
Take a moment to consider your position and your options. You could ask your boss about the possibility of a two-part uplift where you get one small increase now and another later. You might want to think about how long you’re prepared to wait for a pay rise, or if you want to look elsewhere for a new job role. You might want to ask your boss when might be a good time to revisit the topic.
If it’s simply that your company can’t afford to give you a pay rise then is there an alternative perk that would help you? For example, a private healthcare plan or more flexible working options?
How to get the chance to earn big money
Everything in this guide so far is about best practice and it will get you on your way to a pay rise if there’s one to be had. However, now you need to be honest with yourself – do you want a pay rise and to incrementally work your way up the ladder? Or do you want the chance to earn big money?
The latter involves thinking outside the box and beyond the confines of your specific job role. You need to think of it from your employer’s perspective – they want their company to make money, so if you come to them and demonstrate how you’re going to break the mould, think differently and bring big value to them, then there’s an interesting conversation to be had.
Perhaps you’re going to introduce new members to the team, saving them recruitment fees and growing their staff. Maybe you’re going to develop your own network so you can proactively introduce new business to the company. You might go out and get new skills so your output is 50% higher than everyone else in your peer group. Or you might have spotted a gap in the market that you’re willing to explore on top of your existing workload to generate a new revenue stream for the company. Those are the ideas that will grab your boss’s attention and take the conversation from pay rise to much more exciting places.
Matt Haycox says: “The essential thing is that you need to show how or why you’re invaluable. For businesses that usually means showing where you deliver revenue and/or save costs. Every job has a pay bracket and a pay cap that you won’t exceed no matter how good you are. I have quite a simple view on pay rises – I want to know how much money you are making me, and if you want a material pay rise then you need to be bringing me income or adding measurable value to my business. That’s what you need to demonstrate in your pitch.”
Asking for a pay rise can be a daunting prospect but it also probably means you’ve reached an exciting point in your career where you’re ready for the next step. If you want to take your career to the next level, our private business coaching can help you increase your skills and give you the edge, whether you’re asking for a pay rise or looking for your next job.
