In the wake of the global economic crisis, many employees have lowered their expectations of an increase in their pay while the companies they work for get back on their feet. Now that mid 2010 is almost here, many organisations are recovering well and, as such, employees should not let the events of the past two years discourage them from asking for that pay rise.
The 2010 Hays Salary Guide has found employers are casting off the doom and gloom of the global financial crisis and replacing it with a more optimistic outlook with some appearing ready to dig bit deeper at their workers' next pay review. And while many companies are still feeling some of the GFC’s bite, they do intend to keep valuable staff. Most bosses will agree to staff pay rises rather than risk losing key workers
Be Prepared Before Asking for a Pay Rise
Before approaching management for a pay rise however, it’s important for employees to “benchmark” themselves by being aware of what salary a similar position has attracted elsewhere in the marketplace. People can look at the salary surveys of various recruitment firms to compare their income to the industry standard. They should not feel inhibited about asking for what they believe they are worth.
Astute employees should ensure they are well prepared before asking for a raise. The employer needs a clear understanding of the value the staff member has made to the company over the review period. To ensure this, employees should document their achievements over that period and be prepared to put forward a good reason why they should get a pay rise.
For example, if they have taken on more responsibilities or proven themselves in a particular area then this may justify an increase in salary. Workers should never use the argument that a pay rise is justified because a colleague with similar responsibilities was on a better salary. Salaries are often highly confidential and employers may not look upon this reasoning favourably. After all, two people may share the same job title but the service delivery may completely different.
Be Aware of How the Company is Performing
Staff should also keep pay rise expectations in line with the current company performance and the prevailing economic environment. They should be mindful that during the recovery period of the global financial crisis profit margins may be significantly squeezed. For example, as mentioned earlier, some firms may have adopted pay freeze policies in these difficult times to expedite a return to profitability.
In cases such as this, it might be better to put the request off until a more suitable time. In turn, employers should be honest about the financial state of the company and earmark pay rises for the future. It is essential that management keeps an open line of communication to generate understanding from employees that they must wait a bit longer than usual for a pay increase.
Most companies, despite having experienced difficult financial times over the last two years, are willing to offer pay rises rather than risk losing key staff. Employees should prepare well before asking for a raise in their salary by benchmarking themselves in the marketplace, documenting their achievements and being aware of the company’s financial situation before asking for an increase in pay.
Source: 2010 Hays Salary Guide
Readers may want to check out the following articles on pay rises: How to Ask Your Employer for a Pay Rise and Scared to Ask for a Raise.
Lauren Mulhall - Lauren is a communications professional with 10 years experience as a journalist, sub editor and communications officer. Throughout her ...
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