Why and How to Ask for Pay Raise

By Vincent Malunga | 10 June 2022

If there is one thing that most people can never get enough of it is money. This is particularly true of most employees. The list of expenses is always longer than the number of zeros on the paycheck. While sound financial management goes a long way in keeping paid employees living within their means, sometimes those means just need to increase as the salary balloon can only stretch so far. The question is: How does one negotiate for an increment?

While some employers factor cost of living in annual increments, these are hardly ever enough to keep up with inflation. Some employers do not even factor it in their increments, tying all increments to performance. When considering asking for out of cycle increments employees need to remember that employers will not grant increments on Samaritan basis. It is thus very important to make a strong case on merit.

As is often the case with all arguments, research is always a good starting point. Facts must support and accompany logic when making a case. In this regard, it is important to research market trends on similar roles with similar responsibilities in similar organisations and what the current going rates are. Armed with this research, you can demonstrate that you are behind the curve among your comparable peers.

Secondly and as much as possible, within your own organisation, you can try to demonstrate that your actual current responsibilities are bigger than the defined role and those of others in the same evaluation band of roles. This would help one prove under remuneration based on responsibility and comparison with internal peers.

Thirdly and perhaps most importantly, it is your record of accomplishment of performance within the organisation. High performance ratings make it easier to motivate for increments. In fact, most organisations will give higher increments automatically for the highest performers. Even if you are behind the market and peers, if your individual performance is below average or just average, you are bound to struggle to motivate for an increment. This is decisive.

Fourth and applicable in only certain circumstances, is the case of rare skills. Here one can invoke the adage of the one-eyed being king in a kingdom of the blind. You can get away with being average and still be able to motivate for increment if you have rare skills that are not easily replaced. From an organisation’s point of view, it would be better to retain rather than lose even an average Nuclear Physicist, for example.

Armed with all the relevant ammunition is time to call for a meeting with boss and a representative from Human Resources to have the conversation. Keep it formal but cordial and focus on the facts and logic of the matter. Do not expect an immediate favourable response there and then. Chances are they will need to go, reflect, and do their own analysis before coming back to you. Do make sure they give time frames on coming back to you one way or the other. Be patient.

In the background, make sure you are prepared for a possible negative outcome and have in mind what your response will be if they decline your request. Leaving may be one of the key responses you may have to consider

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This article is also published in the GFI Newsletter on LinkedIn