After a period of high interest rates and increased living expenses, even if you haven’t actually had a pay cut, it might still feel that way. If that seems familiar, it’s likely you feel ready for a pay rise. But how do you actually go about asking for one? Recruitment specialist Roxanne Calder says it’s easy to see why many of us avoid these conversations.
“It’s a delicate negotiation and, like any event significant to us, requires extra effort, thought and practice,” she says. Here, Roxanne shares five ways to negotiate like a pro…
1. Keep Calm
Roxanne says keeping calm means maintaining a positive outlook. “Feeling disgruntled because you have not had a pay rise is normal and part of the psyche of preparing for a ‘battle’,” she says. “Try not to hold onto these dissenting thoughts. Recall the positive aspects of your job and the employer instead. Positive or negative, these thoughts will transfer to your body language and demeanour.”
It’s also important to see both sides and remember that your boss may be struggling with issues of their own, such as rising business costs. “Seeing the other side is the 101 of smart negotiations,” she says.
2. Have your facts at the ready
Roxanne recommends using job advertisements, recruitment agencies and salary guides to find out what people with similar roles, education and experience are getting paid. “Do you receive other benefits, such as additional contributions to your KiwiSaver, health insurance, bonuses, training etc?” she asks. “All of these also count towards your total remuneration package.”
It’s also important to consider our current economic environment.
“Be savvy in your approach, in what you ask for and think big picture.”
3. Review your job description
Next, take an honest look at your performance. “Consider your job description as the contract or agreement of duties and responsibilities in return for your salary. Are you meeting everything described?” says Roxanne. “Take your time to review the past 12 months-plus, and include acknowledgements and feedback.”
4. Choose your price
“Have a realistic salary range in mind and pitch according to the facts,” advises Roxanne, who also says it isn’t a time to barter. “Salary negotiations are sensitive for both parties,” she explains. “A high pitch as a ‘chancer’ could erode your credibility and integrity, and damage relationships, so be mindful.”
If things don’t go your way, resigning does not have to be the next step. “Instead, look to other benefits to negotiate – working from home, annual leave, training etc,” says Roxanne.
5. Practice makes perfect
Roxanne says this is something people often forget to do. While it might feel strange, she recommends doing a few rehearsals to get ready.
“Say it out loud, smile and use eye contact,” explains Roxanne. “The more you become accustomed to saying the figure and why, the easier it will roll off your tongue. Take notes with you. It’s totally okay and expected. It will help you to remain calm and composed.”
Minimum wage boost
Starting next month, the adult minimum wage rate will rise to $23.50 an hour. While it’s a modest 1.5 percent increase, it’s still a good opportunity to evaluate your own salary – especially if this change affects your position within your company’s pay structure. Here are some key factors to consider when deciding if it’s the right time to make your case:
Relative pay compression
If your pay is above the minimum wage, but this increase brings entry-level roles closer to your salary, you might feel that your experience and skills are not being fully recognised. This situation, known as “wage compression,” is a valid reason to discuss a pay adjustment. It’s entirely reasonable to request a salary that reflects your expertise and seniority.
Cost of living
Minimum wage increases often correspond to rising living costs. If inflation has been affecting your budget and your salary hasn’t been adjusted recently, this could be a good time to raise the issue. A cost-of-living adjustment can help ensure your pay keeps pace with all of your everyday expenses.
Industry and market standards
Research whether the wage increase shifts the average pay for similar roles in your industry or region. If your salary has fallen below market rates, it’s a strong case for a pay adjustment.
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