How to Secure a Pay Rise This New Financial Year

With the new financial year upon us, you may be thinking it is the perfect time to evaluate your career progression and consider asking for a pay rise. Securing a salary increase can feel daunting, but with the right preparation and mindset can make you feel more confident and ready for success. 

 Reflect on Your Achievements 

Before you pitch the question, it is crucial to reflect on your accomplishments over the past year. Make a list of the projects you have worked on and the goals you have met. 

Show that you met or exceeded your KPIs to make a strong and direct link between the work you do and the improvement in the organisation’s income and profit. If you can show this, it is measurable proof of your performance and impact, emphasising your commitment to the organisation’s growth and success.  

If this is not possible, gather as much information as you can. For instance, if a client has sent an email praising your work on a project, or a colleague has thanked you for solving an ‘impossible’ problem. Perhaps you have received an industry award for outstanding work, these can all support your case!  

Tip: Get objective data on how you are solely (or primarily) responsible for those positive outcomes. 

Research Industry Standards 

Understanding your worth in the market is essential. Research the average salary for your role in your industry and geographical area. 

Make sure the job description matches (or similarly) your current official job description and that you have proof of what you do. Make sure that you have accounted for the total salary package when you are comparing examples.  For example, if the ad or report specifies a total package, be aware that that may include superannuation, bonuses, and benefits. Make sure your actual pay rise request still fits in the range. 

Websites like SEEK and the Australian Bureau of Statistics provide valuable insights into what others in roles (or similar) are earning. Use these salary guides and the official statistics of the average pay for certain positions to benchmark your salary and support your request. Just make sure the insights you are looking at are recent and up to date!  

Prepare Your Case 

When you approach your manager, you need to present a well-prepared case.  

Highlight your achievements by discussing any significant projects you have led or been a key part of. Explain the challenges you faced, the solutions you implemented, and the successful outcomes. Emphasising these standout projects demonstrates your ability to handle complex tasks and deliver results. 

When possible, use numbers to illustrate your contributions. For instance, if you increased sales, state the percentage increase. If you reduced costs, specify the amount saved! Quantifiable results make it easier for your employer to see the tangible benefits of your work and align your request with the company’s goals and financial status. 

Explain the scope of your responsibilities, especially if they have expanded over time. If you have taken on additional duties or covered for colleagues, make sure your employer knows. This shows your versatility and willingness to go above and beyond. 

Collect positive feedback from colleagues, clients, or supervisors to demonstrate your value to the company. Testimonials that praise your work ethic, problem-solving abilities, and positive impact can strengthen your case!  

Choose the Right Time 

Timing is crucial when asking for a pay rise. Formal performance reviews are often your main opportunity – generally held at a specific time of year for all employees, or on the anniversary of your employment start date.  

Your employer may ask you to wait for your performance review time, unless there is a special exception. This might not necessarily be a bad thing; your boss would be preparing to discuss pay or has a reason such as needing to wait for more information or a different budget period. 

If there is no performance review process lined up, follow your organisation’s communication protocols to request a meeting with the manager responsible. Have the request in writing (email) so there is a formal record of communication! In the email, you do not necessarily have to say that you will be asking for a pay rise. Think about the tone you’re setting; for example, you might say you want to talk about your future at the organisation, and how much you’re looking forward to contributing to the future. 

Be mindful of your company’s financial health; avoid asking during periods of financial strain or layoffs. If you have a performance review coming up, you do not even need to request and secure a meeting – just get ready for it! 

Practice Your Pitch 

Confidence is key. Practice your pitch with a trusted friend or mentor to get feedback and build confidence. Make sure you can articulate your achievements and the rationale behind your request clearly and concisely. 

Prepare for potential objections and have responses ready! You can prepare written notes of what you are going to say. Depending on how things are done at your organisation, or what you feel comfortable with, you might also prepare a short presentation, showcasing the information you are presenting to support your case.  

Include a list of links to back up the statistics you claim. For example, a report from the Australian Bureau of Statistics or a SEEK job ad listing. Save a copy of the report or take screenshots of the ad listing, just in case the pages are archived. 

This shows that you have thought your request through and are prepared for a constructive discussion. 

Be Open to Negotiation 

While a salary increase might be your primary goal, be open to other forms of compensation if a pay rise is not feasible. This could include additional annual leave, flexible working arrangements, professional development opportunities, travel allowances, or bonuses. The list goes on!  

Our blog on ‘Things to ask your boss for instead of more money’ explores the different benefits you can ask for instead of a rise to help make your role more enjoyable. 

Follow Up 

If your request is denied, do not be disheartened. Ask for feedback on what you can improve and set a timeline to revisit the discussion. Showing your commitment to growth and improvement can position you more favorably for future reviews. 

Keep track of your progress and achievements regularly. This will make it easier to build a compelling case for your next review. 

Approach the pay rise conversation with ease, but ensure you have a thorough preparation and clear strategy. While money is important, other factors also contribute to your happiness and wellbeing. Negotiate and consider all aspects that will better you now, but also the future. Remember that the goal is to have a job that you love, one that provides a sense of meaning and purpose. 

If you have applied these strategies and still find yourself unsatisfied in your current position, contact our team to seek out your next opportunity!