How to Ask for a Pay Raise

Are you thinking about requesting a salary bump in 2022? Read our guide for top tips and tricks on how to ask for a pay raise.

 

 

Introduction

 

Irish wages are expected to rise 4-5% this year and next, according to EU estimates. However, with inflation projected to reach 3.1% next year, many industry experts question whether these increases will keep pace with the rising cost of living. These figures indicate that many employees will be seeking out salary increases over the next 12 months. 

 

Data from MarketWatch has revealed that workers who regularly negotiate their salary earn at least $1 million more throughout their careers compared with those who don’t. Outside of moving jobs, it’s clear that salary negotiation is the best way of increasing your income. However, many employees have never approached their managers about a much-deserved salary increase. If you are thinking about broaching the topic of a salary bump at work but don’t know where to start, why not check out our comprehensive guide below.  

 

Pay Raise Statistics 

 

• Only 37% of workers have ever asked for a raise from their current employer. (Source: Payscale)

 

• 73% of women have not asked for a pay raise during the COVID-19 pandemic, compared to 58% of employed men. (Source: Glassdoor)

 

• 70% of employees who have asked for a raise received one. 39% of those who asked for a raise received the amount they asked for. Another 31% got a raise that is less than the amount they requested. The remaining 30% did not get a raise. (Source: Payscale)

 

• The most successful strategies for getting more money were in-person meetings (48%) along with researching the salary range of similar positions for comparison (34%). (Source: Zoro)

 

• While 36% of women don’t do anything after initially being denied, 42% of men asked why they were denied, 13.6% negotiated nonmonetary benefits, and 39% started looking for a new job. (Source: Zoro)

 

• Workers who regularly negotiate their salary earn at least $1 million more throughout their careers compared with those who don’t. (Source: MarketWatch)

 

 

What Are the Different Types of Pay Raise?

 

1. Increases Based on Performance and Merit 

An employer may choose to reward an employee’s achievements by giving them a salary bump. This raise may take the form of a standard percentage increase or it could be a lump sum added to the employee’s annual salary.

 

2. Cost-of-Living Adjustments (COLA)

Some employers opt to give out annual or bi-annual raises in order to keep up with the rate of inflation. The amount of the cost-of-living raises varies with inflation. As such, this type of raise helps to ensure that the buying power of an employee’s salary remains the same during a period of inflation. 

 

3. Standardised Increases

A standardised pay raise refers to when an employer awards a salary increase to a group of employees (e.g a particular team, the full company). Every employee receives an equal amount and the increase may take the form of a percentage raise or lump sum.

 

Feel Uncomfortable Asking for a Raise?

 

Making a pay rise request isn’t something you do every day, so it’s normal to feel anxious. However, initiating the conversation yourself is far more effective than waiting for your employer to make the first move. Being proactive about salary may be uncomfortable but it has been shown that this strategy can have a hugely positive effect on your salary. According to Fast Company, the four biggest fears people have when asking for a raise are: 

 

1. Fear that you don’t deserve more money 
2. Fear of rejection
3. Fear of negotiating 
4. Fear of losing your job 

 

So what are some things you can try to ease your nerves about asking for a salary increase? 

 

• Practice the conversation beforehand with a trusted friend
• Prepare your arguments in advance
• Get to know your worth by researching salaries 

 

 

How to Ask for a Raise: A Step-By-Step Guide

 

Step 1: Pick the Right Time

When asking for a raise, timing should be your first consideration. The timing of your request could have a major bearing on your employer’s response so you need to be tactical. Before you schedule a meeting, reflect on the following questions: 

 

• What is the company’s current financial situation like? 
• Is there a salary review cycle coming up?
• When was the last time you received a raise? 
• Have you successfully completed a major project recently?

 

Step 2:  Calculate Your Pay Raise Request

Knowledge, as they say, is power. Before arranging a meeting you need to know your worth and translate that into a fair and realistic salary. As such, it’s important to have an up-to-date grasp of current market rates for your role. You can research this by cross-referencing different salary guides, looking up salary brackets in job ads, and chatting to a recruiter. It’s also a good idea to read up on the rate of inflation and cost of living figures. 

 

Step 3: Prepare Your Arguments 

According to Financial Therapist, Debra Kaplan, “The request for a raise should be based on objective fact gathering and not on a self-assessment of worth.” When making a pay raise request, investing time into preparing compelling augments can significantly increase your odds of successfully persuading your boss. 

 

We recommend preparing a “Brag Book” that contains the following pieces of information : 

 

• Key facts demonstrating how you have added value to the company 
• Stories of times when you added value 
• An explanation of how your responsibilities have changed/expanded since first taking on your role
• Examples of any positive feedback you have received from colleagues, managers, clients etc. 

 

Step 4: Plan Your Next Steps If You Get a ‘No’

While positivity is key, it’s also important to carefully consider what you will do if your boss chooses to decline your request. It’s best to do this in advance, so you can stay objective.

 

Firstly, you should consider how feasible it would be to make a non-monetary request in lieu of a salary bump (e.g. additional holiday days, greater flexibility, remote working etc.) 

 

This is also a good time to weigh up your options and to start seriously thinking about moving on to the next step in your career. Consult your career plan and start thinking about what the next career move should look like for you. 

 

Step 5: Arrange a Meeting

Having completed your prep and reflected on your next steps, now comes the hard part – talking to your manager. Take some time out before the meeting to relax and review your arguments. Give your manager plenty of notice by sending an email to formally set a time and date to discuss your salary. 

 

During the meeting, try to stay professional by presenting your arguments in a neutral and fact-based way. Take your time and remember to breathe!  

 

At the end of your presentation, ask your manager if they have any follow-up questions and arrange a time to check in again to see how your request is progressing. 

 

10 Do’s & Don’ts of Asking for a Raise 

 

1. Do try to make your request in a face-to-face or video meeting.  
2. Don’t make it personal. 
3. Do back up your request with several objective, fact-based arguments. 
4. Don’t give an ultimatum or threaten to leave your job. 
5. Do conduct research to learn more about current market rates for your role. 
6. Don’t base your request on a colleague’s salary.
7. Do consider alternatives to a raise in case you get a negative response.
8. Don’t schedule the meeting at a busy time of the year. 
9. Do keep a positive mindset about your chances of securing a raise. 
10. Don’t blindside your manager. 

 

 

What To Do If Your Employer Says No

 

Common Justifications for Pay Rise Refusal 

According to Payscale, the most common reasons employers give for refusing a salary bump are: 

 

• Budgetary Complaints 
• Asking outside of the established time of year for raises 
• Performance doesn’t warrant a raise 
• Not in the role long enough
• Shockingly, 33% of bosses do not provide any rationale for refusing a raise request.

 

Next Steps

If your employer says no to your request, you should first try to dig a little deeper into their rationale. If you think your manager will be receptive, why not ask them what you can do to earn a raise in the future. Their answer will hopefully give you helpful information to guide and improve your performance going forward. However, if they cannot provide you with an answer then it may be time to consider moving on. 

 

If the company isn’t in a position to give you a raise at the current time, you could also enquire about a non-monetary alternative such as extra holidays or an improved benefits programme. 

 

Should You Say or Should You Go?

In some cases, you may be better off changing jobs altogether. In fact, research shows that getting a new job is a much better way to secure a pay increase than asking your current employer for a raise. When switching jobs, it’s generally the rule to negotiate for a 10% to 20% pay increase from what you are currently making. You should also consider making a switch to contracting, as a lucrative day rate may in fact offer higher take-home pay than a salary. To learn more about how much you could potentially earn as a contractor, download Berkley’s 2022 Contracting Rate Reports. 

 

Before making your decision, consider your long-term career goals and whether you can achieve these while working in your current role. If you feel like you have plateaued in your current job, then it may be time to seek out a new position elsewhere that meets your salary expectations while also offering plenty of growth opportunities. 

 

Fortunately, the fact that you already have a job means that time is on your side. Take your time and do your research to ensure that you find a role that is the perfect fit for your skills and personality. We also recommend chatting to a Recruitment Consultant who can advise you on ways to grow your career by taking advantage of current opportunities in the market.