How to ask for a Pay Rise

Interested in any advice, opinions or experiences relating to this topic.

• How long after being hired is it appropriate to request a pay review?
  
• What is the best way to state your case for a pay increase? i.e. simply request a pay review, write a letter/email, a casual chat with your boss etc.
  
• Is it better to wait until your formal 'performance review' or request a pay review before this time?
  
• When requesting a pay review/increase, is it better to specify an amount which you believe is appropriate, or simply state reasons/evidence as to why you think you deserve more money?

I realise the answers to the above questions depend on individual circumstances, but any experiences or advice is helpful.

Thanks everyone.

If there is a way you can quantify how much you earn the company then this is usually good to have to take into the meeting.

Personally if you have a performance review coming up soon i would wait for that, otherwise depending on your relationship with your boss i would mention it in conversation and say you want to have a meeting about it when they have time. This way it gives them time to prepare also.

I asked for a raise after 6 months.

As you said every situation is different though

Junior said:

Interested in any advice, opinions or experiences relating to this topic.

• How long after being hired is it appropriate to request a pay review?
  
• What is the best way to state your case for a pay increase? i.e. simply request a pay review, write a letter/email, a casual chat with your boss etc.
  
• Is it better to wait until your formal 'performance review' or request a pay review before this time?
  
• When requesting a pay review/increase, is it better to specify an amount which you believe is appropriate, or simply state reasons/evidence as to why you think you deserve more money?

I realise the answers to the above questions depend on individual circumstances, but any experiences or advice is helpful.

Thanks everyone.

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Here's my opinion on the above points (just general thoughts, won't apply to all situations/jobs/managers/employees/industries/etc)

1. Unless the scope of your role changes substantially (i.e. you're conducting significantly more work or you're doing more advanced work than what you were hired for) then I would wait until your first performance review (or after the first 8-10 months or so). Otherwise, if the scope of your role changes i'd be seeking adequate compensation for your time
2. I would organise a quick 5 minute meeting with your boss first to let them know you'd like to sit with them later and have a review of your remuneration (it's nicer then just springing it on them). Then if they're fine with having a discussion, set up a proper meeting with them with sufficient time for them to prepare (at least 2 business days as they may need to contact HR or look at market rates)
3. See point 1 above
4. I would firstly present evidence supporting why you think you deserve a pay rise. e.g:
- My role description requires me to do 'x', whereas i'm currently doing 'y'
- I have implemented a number of intiatives, 'x', 'y', and 'z' which have delivered the following benefits 'blah blah'. I have specialist knowledge of these systems and based on my experience and expertise I feel that... etc

if known, show evidence of market rates:
- Market rate for my role is '$x' and I currently receive '$y', together with my experience working in this company and my skills in 'x' 'y' and 'z', etc

General note: if you are worth the extra money, the manager will generally give you a rise without too much concern however remember that their job is to get the best resource at the best price. You need to prove to them that you add more value than what you're currently being paid for so make sure you have plenty of evidence to back you up.

Some good advice here.

Perhaps from an employers view.

Value to the company.
Ease to work with
Can do attitude.
Relationship with other staff.
Speciality
Return on investment
How big is the big picture--where to in future.
Loyalty
Confidentiality
Measurable performance
Measurable value
Cost of loss both $$s and time.

If your that good they will mention it first and if they're that good their offer will be too low---you'll negotiate to fair value and they will know it!
Be prepared to walk out of the meeting armed with 24 hrs of mull time---a strong negotiating tool the party waiting will often settle higher or lower (If they ask to mull over your offer).

If your worth more and not expecting a pay rise because you've just been there a while---good luck.

If your simply looking for a pay rise because you've been there a while ---then Good Luck---
I use such opportunities to cull the dead wood--(I'm sorry it appears we can no longer afford you-- so perhaps best we part ways.)

Thanks for the advice, especially Tech.

I'm trying to think about it from the employers' view. Last thing I want is to lower their opinion of me by requesting a raise I don't deserve...hence trying to work out the timing as well as the justification.

I've been on the other side of the table a few times. My reaction is probably similar to the reaction you will get. My assessment was influenced by;

1. Am I/we paying this person a fair wage for the work performed.
2. Is this person/position really necessary.
3. Can the person easily be replaced.
4. What is this person contributing and will that contribution increase with additional payment or decrease if an increase is not forthcoming.

I found that in most cases those asking for an increase overestimated their contribution to the business. In reverse the assessment sometimes led to a pay increase for someone who had not asked but had shown up as being more valuable than the one that initiated the review.

Tread carefully, do an honest self assessment first. Use Techs post as a guide.

Market rates for similar work are always useful to know in any discussion about pay rates if your job is fairly generic (eg dentist, plumber, accountant, truck driver - all fairly common jobs for which information should be obtainable. If you really are a rocket scientist then it's a bit different...). If you don't have that information now, then get it before you go any further.

How to go about it really does depend on your relationship with the boss.

Agreed with what Tech and others have said also.

One thing I've often noticed is that if you have a group of people all doing essentially the same job in the same workplace then those who scream loudest for a pay rise tend to be those least worthy of receiving it. I'm not an employer but it is something I have noticed more than once. No doubt bosses and HR departments would be well aware of this too... be careful.

I strongly agree with nioka's points.

If your assessing manager/ boss/ department head is "right", as in "deserves to be" in that position, he/she will probably be convinced, even pride themselves in their ability to have a fair handle on how much each team member should earn. Whether they're right or wrong in their assessment, you will be well advised to find out their degree of satisfaction with your performance. No good if you consider yourself the bee's knees, while they think you suffer from delusions of adequacy. Asking for a rise in such a setup will cut short your stay with that company. Weigh up if that's what you want - if it is, you better have a better job offer lined up.

Normally though, you will need first to find out whether your manager's assessment of your ability and performance matches yours, if they expect more from you, or feel at times surprised how well you handled a particular task or project.

A good manager will be frank with praise and criticism alike, and communicate both at every suitable occasion, so you'll know where you stand.
A not so good manager may tend to overdo criticism, but sometimes that can be a deliberate ploy to spur a worker on to do better; in such a case, there's nothing wrong with asking politely, but directly, e.g.: "You seemed discontent with the results of x,y,z - can you tell me how I could've done better?" or "I know you weren't too happy about x,y,z - do you think I should have handled it like a,b,c?"
Especially the so-so bosses will feel flattered to be asked. Just don't overdo it. But that will give you a chance to emphasize the good results that they did NOT criticize and balance the picture in your favour. Also note that such a discussion can, even ought to be had quite often and casually, outside any scheduled performance reviews.

And if there is a mutual trust and respect, it will be very easy to argue your case for a pay rise when the time comes for either a formal review or after reaching a particular milestone.

And then there are bosses, who got to their position by reaching their Peters level of incompetence. For those, I have found only one practical solution: If you can't outflank them by presenting your case to the next higher level, or - in a larger company sometimes possible - by seeking a transfer to another department, then there's only one way: Look for a new job elsewhere.
No point telling them what you think of them; no point leaving with a bang. If you do, there is every chance they unburden themselves at the next watering hole and tell a casual acquaintance or old school buddy about that row with this snotty know-it-all ... and that buddy happens to be the boss, to whom you're about to present your cv tomorrow.

Thanks everyone for the advice.

At the moment, I'm the only person in the company performing my particular set of tasks...so I'm not concerned about being compared directly with other staff members. It's more about the cost of hiring someone new and having to train them....I think this would be quite expensive.

The difficult part is knowing what the current market rates are, as I'm in financial services, there seems to be a very wide band of wages following the GFC. I'm considering contacting recruiters, whom I've met previously, to find out what a fair rate is.

Junior said:

The difficult part is knowing what the current market rates are, as I'm in financial services, there seems to be a very wide band of wages following the GFC. I'm considering contacting recruiters, whom I've met previously, to find out what a fair rate is.

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Also look at advertised positions elsewhere to see what they are paying.

One thing to consider is the company and working conditions. How does it compare to others? For example, if you have flex time, different working conditions etc then this will quite reasonably be reflected in pay rates.

Looking at the trades with which I am more familiar, working conditions do vary. If one employer works 5 days a week no matter what, whilst another stops work in the rain or excessive heat then the latter will quite reasonably expect to pay their workers a bit less since the non-pay conditions are better. Likewise if the boss is willing to give time off (in addition to formal leave entitlements) due to genuine personal emergencies and the like then that is also a reason to pay a lower rate.

Looking at my own situation, I was going to work yesterday, today and tomorrow. I decided not to go to work today since I have something that needs doing at home (having lunch at the moment...) and there was nothing at work that couldn't wait (just catching up on paperwork this time of year anyway). I'll tell the boss when he's back from leave in January so leave can be deducted etc. Obviously I don't expect to be paid the same as someone who doesn't have that flexibility since the flexibility itself does have a value. But likewise, had there been something urgent then I wouldn't have taken the day off. Swings and roundabouts as the boss says and I agree.

A particular issue arose where I work relating to a non-pay benefit that is not a right, but is long established. I simply converted that to a financial value to assist in the discussion and to enable a "level playing field" comparing with rates offered by other employers. As several noted, they'd rather keep that benefit (that being the issue rather than actual pay) but only to a point. If the boss offered a 20% pay rise then they'd gladly lose that other benefit in return, but they wouldn't want to lose it just for the sake of it since it does have some value.

Pay is one component. Non-pay benefits, including general things like working conditions and environmnet, also have a value. You need to consider all aspects of the job.