Fight interest rates with a pay rise discussion

Yesterday’s announcement of a 12th rate rise in almost as many months had most of my clients feeling pretty worried. Are you feeling the pinch of higher interest rates? Are you struggling to keep up with your monthly loan and mortgage repayments? If so, then it may be time for a pay rise discussion. As mid career professionals, you have plenty of options when it comes to negotiating an increase in salary – but knowing where and how to begin can sometimes seem like an overwhelming task. This blog post will give you step-by-step advice on how to successfully engage your employer in conversations around remuneration. From crafting the perfect pitch through to handling tricky questions, we'll provide all the tips and know-how needed to get yourself a well-deserved salary bump. So if higher interest rates have left you counting every cent, read on – let's start discussing that pay raise!

Prepare for Your Pay Rise Discussion - Anticipate Questions and Plan Your Answers

Asking for a pay rise can be nervewracking, but with the right preparation, you can increase your chances of success. Anticipating potential questions or objections from your employer can be helpful, so be sure to prepare well-thought-out answers and examples that showcase your value to the company. It can also be beneficial to reflect on past discussions with old managers, incorporating any feedback or accomplishments into your pitch for a raise. With these steps taken, you can approach your pay rise discussion with confidence and professionalism.

Understand Your Worth and Research Market Salaries

As job seekers, we all want to work in an organisation that not only fulfills us but also pays us what we deserve. Understanding our worth and researching market salaries can be the key to achieving this. Recruiters will often use this information to determine an appropriate compensation package for their candidates, so it's important to be knowledgeable about what you should be earning. By taking the time to research and negotiate your salary, you can win big and set yourself up for success in your career. Don't be afraid to showcase your strengths, and notable wins - these are all factors that can impact your overall compensation. So do your research, stay confident, and know your worth.

Be Clear on Your Value

As an employee, it is crucial to present a clear case for your value to the organisation This means showcasing your unique skills, your intellectual property, and your ability to contribute to the success of the organisation. Demonstrating expertise in your role is necessary to establish credibility and show your worth. It is also important to highlight any key achievements and the measurable ways they have benefited the business.

Practice Your Pitch

Practicing your strong convincing pitch, will raise your chance of success. Ensure you have an exact number that you are aiming for, as well as the minimum that you’d be willing to accept. Ensure you’re including your value, your key achievements, along with how you have developed into the role. Emphasise that you don’t expect an answer on the spot, and that you understand they will need to take some time to review your request. Rehearse this pitch with someone that you can trust and get feedback on any areas that you can improve.

Negotiating a pay rise can be a daunting task for many people, but it doesn't have to be. Just remember to have confidence in your abilities and believe in what you bring to the table. Remember, negotiation is a two-way street, so be open to compromise and don't be afraid to ask questions.

Keep in mind that salary increases are often outside of the control of your direct manager. If a rise is completely off the table, it might be worth having a plan B. Prior to your discussion, have a think about what non-pay alternatives might be appropriate such as training and development opportunities, extra leave entitlements or any other relevant options. Negotiating a pay raise can be intimidating and stressful, but don’t be discouraged. Having a strategy in place to tackle the conversation and armed with knowledge of what you are worth will put you in a great position.

Here’s some example questions to get you thinking.

Question: Why do you believe you deserve a pay rise?

Answer: I believe I deserve a pay rise because I have consistently exceeded expectations in my role. I have achieved [specific accomplishments or metrics] and have consistently demonstrated my commitment to [company goals]. Additionally, I have taken on additional responsibilities, such as [specific examples], which have contributed to the success of the team.

Question: How have you developed professionally since your last pay increase?

Answer: Over the past year, I have actively pursued professional development opportunities to enhance my skills and knowledge in [relevant areas]. I have attended [specific trainings, conferences, or workshops], and I have also taken the initiative to [mention any certifications or qualifications you have earned]. These efforts have not only benefited me personally but have also allowed me to contribute more effectively to the business.

Question: What value have you added to the company since your last salary review?

Answer: Since my last salary review, I have [specific examples of achievements or contributions]. For instance, I successfully [describe a project or task you excelled at], which resulted in [positive outcome, such as increased revenue, cost savings, or improved efficiency]. I have consistently gone above and beyond my responsibilities, and I believe this has added significant value to the business.

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