S2E12: How to get a pay rise, step-by-step guide from HR expert Wayne Clarke
We all want to get paid more but how do you get a salary increase out of your company? What steps should you take to build your case before asking? And how do you approach that pay rise meeting with your manager? To help us figure out a plan, we’re speaking to HR expert Wayne Clarke, author of How to Become a World-Class Manager.
How to set yourself up for a pay rise (6 months in advance)
First of all, make sure you have clarity on why you want a pay rise because it should be rational. The more rational your case, the more compelling it is.
You need a clear set of objectives that your company can measure you against. Your objectives have to be agreed and documented with the company - so then you can say you delivered, which is why you merit a pay rise.
Objectives can change over a year. If this happens, make sure the change is documented so you can still have a good pay rise conversation whenever you have it.
You need clear objectives and regular 1:1s, with timelines - e.g. ‘if I deliver X in 6 months will you give me Y?’
Wayne suggests breaking goals to 90-day cycles because 6 months is too long. You can then break down 90-day cycles even further to say 30-day cycles - this should all be in agreement with your manager and written down.
In this pre-period you should focus on how you can build your individual value in the organisation, moment by moment, in a demonstrable way.
Your goal is to provide demonstrable value to the organisation, worthy of a pay rise. To do this, consider how you can go the extra mile, like the example Wayne gave of diving into the customer service data on Facebook if you worked in customer service at the company he referred to.
In this pre-period (and in the pay rise meeting) understanding your boss’s boss’s objective can be valuable because making your boss look good will increase your chances of success. They will be more willing to fight for you.
Look at what the market says to understand your worth. What do people in your job get paid elsewhere? You need to go into pay rise discussions with rationale on your side.
How to handle a pay rise meeting
Let’s assume you’ve had a 6-month run up to the pay rise conversation. You’ve demonstrated extra value in that period (but not all the value you can provide because you want the organisation to pay you more to get that extra value out of you).
Find an environment you feel comfortable in to have the chat, maybe a coffee shop.
Have a few scenarios prepared before you go in - not just an instant yes - a maybe, a no etc.
Go in with a few options for what you might request. The star prize might be a 20% pay rise but if they say no then have some alternative ideas up your sleeve, like a lower rise of course, or maybe a development opportunity like training, or something else you want to do within the organisation, e.g. half a day week working with another team (because you think it might further your career somehow whilst still adding value to the organisation). Getting more money is one thing but if that’s not on the cards maybe you can use your time better/differently that moves your career forward and allows you to earn more in the future.
Wayne says that as a gut feel, asking for a 10% pay rise is a strong but reasonable ask. Plus, it normally allows you to beat inflation but not these days.
It’s bad practice to go into a pay rise meeting with a threat (e.g. you’ll leave if they don’t give you one) because what if they say no?
It can be useful to go into a meeting believing they’ll say no.
The reality is, even if you’ve proven your value, there can be factors outside your control (which you might not know about) like an organisation’s finances. They might say no for reasons that have nothing to do with you or your performance.
Other things to remember
People want more money to do jobs they don’t enjoy, but if you get paid more to do a job you don’t like, you’ll quickly readjust to earning the extra money and won’t be any happier.
Moving companies can be a smart way to make bigger leaps in pay and seniority than getting promoted within the same company. This of course depends on the role/sector you’re in.
Wayne says you can also make a valuable move within an organisation if you’re happy to ruffle a few feathers. Upper management tends to be enthusiastic because they’re in charge but the further away you are from that level of seniority the lower the enthusiasm. So, if you’re not in upper management, if you ‘outcare’ the majority of the workforce (other employees) you’ll stand out.
Your manager isn’t that invested in your long term career generally.
You need to take ownership for your career. It’s not down to anyone else.
Relationships within an organisation are key to getting promoted and getting paid more.
So how can you build relationships without drinking or smoking? Coffee, tea - any opportunity for 1:1 time, Wayne suggests.
And how best to use that 1:1 time? Wayne says most people like to unload and destress by sharing what they’re up against, so give them a chance to do that with you.
The key is you’ve got to be proactive - people aren’t going to get in touch with you to tell you this stuff.
Most organisations are way too siloed, so if you can break down the barriers between people and groups in your company, you’ll increase your chances of rising within the organisation.
Listen to people, emphasise and they will like you (generally).
