October 30, 2020
Rachel’s recent performance appraisal didn’t go as planned. A professional woman with many years’ industry experience, her KPI’s confirm that she adds significant value to her workplace, and her expertise is highly regarded by management and peers alike. But, to her dismay, her pay rise request was denied and she left the appraisal feeling disappointed and unappreciated.
According to the 2018 Australian Human Rights Commission,
‘In 2015-2016 the average Australian woman reached retirement with an average of $113,660 less superannuation than the average male. As a result, women are more likely to experience poverty in their retirement years and be far more reliant on the Age Pension.’
A contributing factor is that women are less likely than men to ask for a pay rise. Added to this, they often begin employment with a lower starting salary than a man in the same role. This is often the result of differing communication styles and existing workplace gender bias.
Mint People
Nancy Galle is the founder and director of Mint People, a company that provides essential HR & recruitment solutions for businesses. She understands ‘the challenges that come with managing your greatest asset – your people – while keeping them engaged and motivated to work hard for your business.’ Following Rachel’s appraisal, her belief that her workplace contribution was under-appreciated and reasonable request unheard, affected her from both a financial and emotional perspective, a situation which is common for many women.
Natallia recently spoke to Nancy to get her top tips on negotiating a pay rise.
How to ask for a pay rise
In-depth preparation is key. This will help you build confidence, clearly understand your worth and aid you to form a concise plan to address your position. Consider the following questions and determine the answers prior to your appraisal or pay review.
Your job role
Conducting an unbiased analysis of your position and performance will clarify the value you have added and why you feel a pay rise is justified.
How long have you been employed in the business?
What is your current role?
What value did you bring or impact / contribution have you had on the business over the last 12 months?
When was your last salary increase?
What was your experience prior to joining the business?
How did you benchmark your performance against KPIs?
What types of performance conversations have you had over last 12 months and how did they go?
Has the scope of your role expanded with more duties and responsibilities?
Place of employment
There are many business-related reasons a pay rise may not be considered, or deemed appropriate, at a given moment. Have a think about:
Whether your place of employment has put a temporary freeze on salary increases due to financial or economic influences
Are you at the ceiling of your role? If so, what are your next steps in advancement and potential increase in remuneration?
Is performance related to salary in your business? Are discussions held in regard to performance?
What expectations does the company have of you and your performance? If you’re not sure, it may be that you:
don’t know what their expectations are
would like to have more clarity
haven’t received feedback
struggle with communicating with the personality of your manager
Whether your place of employment has behavioural competencies / business values that performance is assessed against?
The power of communication
What is the communication style in your workplace? Rational discussions including proven factors to show the value you have added, and will continue to add, will usually have a better outcome than emotional or unplanned conversations. Consider:
What can you do for them? Often performance reviews are based on KPI’s and past value. A pay rise discussion is a great time to explain how you intend to add value to your role and the business.
Ways you can save time and increase productivity
Options for training and further study. For example, is it possible to be an assistant manager and study at the same time? Will you be supported either financially or in regard to the extra workload? Once your studies are completed, what are your, and your employer’s, expectations regarding remuneration?
How can SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals strengthen your request for a pay rise?
As Nancy says, ‘When you’ve got the right people in the right roles working towards the same goal, it just feels – right.’ This is when individual and business growth occurs. Preparation and effective communication are vitally important for a successful performance appraisal. It’s the perfect opportunity to show your employer that you do understand the organisational behaviours, the motivation behind them, and that you are meeting, or exceeding, your workplace obligations. Importantly, don’t let your emotions drive your behaviour. Keep to the facts and always use positive, active language. In following these tips to develop your communication skills, you’ll find that asking for a pay rise becomes a natural and positive progression.
If you would like to improve your relationship with money and plan for your future, please contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au
General Advice Warning: The information in this communication is provided for information purposes and is of a general nature only. It is not intended to be and does not constitute financial advice or any other advice. Further, the information is not based on your personal objectives, financial situation or needs. You are encouraged to consult a financial planner before making any decision as to how appropriate this information is to your objectives, financial situation and needs. Also, before making a decision, you should consider the relevant Product Disclosure Statement available from your financial planner.