Six Things To Consider Before Asking for a Pay Rise

It’s normal to feel hesitant about asking for a pay rise. In times like these, when businesses are cost cutting and economic conditions feel tight, it might seem even harder. However, that doesn’t mean negotiations should be off the table completely.

According to SEEK’s Salary Pulse, only 32% of Kiwis feel comfortable asking for a pay rise. Even if you don’t end up with a raise, conversations about pay can open the door to better career opportunities and other workplace benefits.

Here are six things to consider before asking for a raise.

1. Don’t wait for your performance review

According to SEEK data, almost half of New Zealanders (44%) prefer to bring up pay discussions during a formal review, while one in three (38%) prefer a more proactive approach.

But that doesn’t mean you can’t start the conversation with your manager earlier. “Don't wait for your performance review, speak to your manager in advance to understand what's required, set expectations and align your goals accordingly,” says Leah Lambart, Career Coach and Director of Relaunch Me.

And don’t forget about the broader context. Did you already receive a pay rise in the past few months or is the company going through a restructure? Keep in mind factors that could impact the discussion.

2. Assess your value to the company

Salary increases are based on the value you add, not your own financial needs. “Understand how pay decisions are made in your organisation, seek regular feedback year-round and let the conversation grow naturally from there,” says Lambart.

Figure out if you’re in a good position to ask for a pay rise by assessing your skills and performance as well as overall market conditions. “Benchmark your salary through recruiters, industry networks and job advertisements to understand your market value,” says Lambart. Take stock of what you bring to the table, including a realistic judgement of your performance and impact.

3. Use data and evidence to help your case

Spell out the reason why you should be paid more for the work you do. Don’t let discomfort hold you back if you have solid justification for an increase – and remember the more data and evidence you have, the better.

“Come ready with evidence-based examples: revenue generated, efficiencies improved and responsibilities taken on beyond your role,” says Lambart. For example, you could prepare an example of a marketing campaign that led to sales 30% above target, or times when you took on extra responsibilities while other team members were on leave.

4. Plan out what you’re going to say

The more prepared you are, the more comfortable you’ll feel talking about pay. Plan out how you’ll approach the discussion. This might be telling your manager in a 1:1 you’d like to discuss remuneration and ask about the next steps.

Create a loose structure for your conversation so you can build a convincing case. It might look like this:

- First, an overview of what you’re asking for i.e. a potential pay increase

- The rationale for why, including your skills, contribution and business impact

- The salary or percentage increase you’re asking for, and how you got this figure (be sure to include market benchmarking)

For example: I'd like to discuss my pay. I've been in this role for [time period] and believe my contributions — particularly [specific examples] – have delivered significant [value or impact]. Based on my market research and performance, I'd like to explore a pay increase of [X%]. Is this something we can discuss?

Remember, this should be framed as an open discussion, not a demand. Focus on the positives and reinforce what you enjoy about your role, organisation and the work you do.

5. Be prepared for a ‘no’

There’s no guarantee that your employer will be able to give you an increase, even if you’re performing well. In some cases, they might say you need to wait until the formal review time or meet certain criteria.

While it’s natural to feel upset or frustrated, don’t let rejection derail your progress. Ask for a path forward and work with your manager to come up with a career plan within the organisation. If your expectations still aren’t met, consider whether moving roles might be your next step.

6. Be flexible and consider alternatives

Sometimes, a pay increase might not be possible – but there may be other benefits beyond income. Consider alternatives such as flexible working or professional development, suggests Lambart.

This could be extra annual leave, a rostered day off (RDO) or more flexible working arrangements. If you’re looking for more professional development or variety in your work, talk to your manager about potential training, secondment or project opportunities.

Asking for more money might feel daunting, but it’s worth it for the potential payoff – especially considering most people who ask for a pay rise get it. Research your value in the market, prepare your case, and go into negotiations with an open mind. Even if you aren’t successful in getting a pay rise, the discussion with your manager can still lead to positive outcomes.

Source: Seek