26 February 2024 - 4 min read
In 2024, the world’s economy is in crisis, with global inflation of around 3%. Subsequently, the cost of borrowing money is also high, causing financial stress for both individuals and businesses. When inflation outpaces income growth, the purchasing power of individuals decrease. This leaves many employees feeling that it is becoming difficult to keep up with rising cost of living, often resulting in what feels like a pay cut to their income based on the need to do more with less. Eventually, this leads employees to focus more on their financial priorities, ultimately creating financial stress that lends itself to decreased morale and productivity at work.
As such, to help you keep up with your financial demands while keeping you on track with your financial goals, we discuss the five simple steps to securing a raise this year (and any other).
Asking for a raise often triggers discomfort, sensitivity, or even anxiety due to a fear of your request being rejected. However, money plays an essential role in our lives, and sometimes it is necessary to speak up and advocate for yourself when it comes to salary expectations.
While some organisations offer annual salary increases or wage increases based on performance or inflation alone, this is not always the case. Often it is left up to the employee to approach their line manager to ask for a wage increase. With that said, in a healthy work environment, an employee should not be afraid to ask for fair compensation in the face of inflation, increased responsibilities, and the plethora of other reasons to ask for what is deserved.
Though it is important to prepare yourself before submitting an official business case towards your salary increase. First and foremost, consider asking yourself the following questions:
It is equally important to consider what not to say when asking for a raise. It also important to prepare for both positive and negative outcomes and remain professional in delicate situations like these. In case of a rejection, try not to take things personally and instead try to think of any nonmonetary benefits or, worst case, what other job opportunities might benefit you if you are told you will need to wait for an increase.
Researching industry trends in relation to your salary as it compares to those in your industry and location will help you to understand whether you are being paid fairly for your skills, experience, and contributions or not. Additionally, it shows that you have done your homework when you ask for your raise, providing actual data as leverage. It also helps you understand where you stand as a professional within your industry and whether you fall in line with the standard salary for your role.
Researching your average salary on platforms like Indeed and Glassdoor, help you set realistic expectations for the raise you are seeking while also prepping you to negotiate confidently and efficiently. This increases your chances of a successful outcome.
Moreover, some recruitment companies tend have an annual salary guide for reference, so you can seek those out or ask an agency directly to help you determine an amount based on your experience, industry and conditions. It is also worth mentioning that if you ended up without the increase you were looking for, you could utilise a recruitment agency to help you find new job opportunities and fight for a better salary on your behalf.
Securing a promotion or raise is significantly easier when you have all your goals and achievements already documented. Documenting your accomplishments allows you to quantify your value, gain credibility and leverage but, most importantly, get the validation and career advancement that you desire. Use resources and ready-made formats like the ones suggested by LinkedIn to effectively measure and document your achievements. Compile a list of all your achievements, including specific numbers and statistics that demonstrate the outcome of your performance and its impact on the company. This list would become a ‘business case’ for a raise.
Moreover, showing initiative and doing more than your job requires is not enough for a raise in most cases, as everyone is often preoccupied by their own work, meaning managers or supervisors might not notice your daily efforts, especially if you are working remotely. Communicating frequently with your line manager as well as having focused sessions where you discuss tasks completed and progress made are effective to get you noticed. It allows you to:
It is important to set up a meeting to discuss your potential salary increase with the right people in your organization, whether that be your HR representative or your direct line manager. Either way, keeping your communication direct and clear with the right people will build trust, set expectations, and give them time to think about how they can best support you with your request. Additionally, it demonstrates transparency between you and your employer and opens the door for feedback on your performance and contributions to the organisation.
To maximize your chances of getting a personalized promotion according to your circumstances, it is important to negotiate where applicable:
Timing is money and money is everything in a workplace. Choosing the correct time to discuss your salary will show your employer that you are not simply considering yourself, but the financial position of the organization as well. If you are not sure where to look to give you an understanding of when the “right” time is, we recommend simply using common sense. If, for example, your company just laid off a number of employees , it may not be the best time to ask. If, on the other hand, you have recently taken on more responsibility at work, consider how this comes into play and whether you have a case.
Your line manager knows how you work on a day-to-day basis and, as such, they will often be the best person to support and help you gain a pay rise. It is important to appreciate and remain considerate of their guidance as they have likely been with the company for longer and know how to approach senior management with cases like these. During this initial conversation with your manager, however, it is important to lay out your request (preferably within a written document) and review the following:
Salary discussions, just like job interview, are often a negotiation. In case the company cannot provide you with an instant raise, stay open to compromise in other ways, such as:
Following up post-meeting shows how serious you are about your request. It also keeps you informed about the status of your request and helps you avoid any frustration or decrease in productivity in the meantime. Moreover, following up gives you the opportunity to clarify any questions or concerns your manager may have and address them efficiently. Keeping the lines of communication open allows you to have a constructive dialogue about your performance, goals, and compensation. Additionally, it helps you to plan your next steps depending on the outcome, you may need to:
Securing a raise may be challenging, however, utilizing these five steps will empower you to negotiate confidently and increase your chances of success despite economical challenges and evolving workplace environments.
Secure your raise by enrolling on a professional qualification with DPG today.
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