What can you do with a salary increase?
A salary increase can be one of the most significant financial changes to your life, and the benefits go beyond the value of a higher salary.
It can also be life-changing well before considering major purchases, especially in reducing the gap between the national average and the minimum wage.
According to the Australian Fair Work Ombudsman, the national minimum wage in Australia is $19.84 per hour or $753.80 per week ($39,197.60 per year). Casual employees get at least 25% casual loading.
Compare the above with the latest data from the Australian Bureau of Statistics. It revealed that the full-time average salary is more than $85,000 per year, which is more than double the national minimum wage. The Australian Council of Trade Unions is advocating for the rate of $20.53 per hour – a 3.3 pc increase.
A salary increase will help you pay off debt, save more money, and improve your quality of life. It will also benefit your long-term savings by increasing the superannuation contributions your employer makes.
Therefore, the sooner you secure a salary increase, the greater your retirement fund will become.
10 insanely simple ways to increase your salary
1. The golden rule of timing
Ask yourself if this is the appropriate time to ask for a salary increase.
So what’s the best time?
It is always best to ask for a salary increase on or before an anniversary, at the end of the financial year or before the budget is signed off.
2. Consider your responsibilities and achievements
Before you ask for a salary increase, consider the following;
- What have you achieved in your role, and can you provide proof?
- Have you taken on more responsibilities in the current position?
- Can you demonstrate greater efficiency?
- Can you demonstrate an increase in revenue or performance?
- Conduct a market survey and see if you are being underpaid for your role, level of experience or skills.
If you can justify some or most of these factors, then you really deserve a pay rise. Approach your boss in a business-like manner with confidence, and don’t let your emotions drive your behaviour.
Emotions only make it messy, and more than likely, you’ll not end up with a positive outcome. Remember to always remain professional.
3. Convince your employer you’re worthy of a salary increase.
Learn how to demonstrate facts with tangible information and proof of your achievements.
You can provide copies of positive client feedback, peer or management emails, reports, achievements and results. Show proof of how valuable your role is in the market with information backed by reputable industry associations.
Such proof adds weight to your request.
Always remember to conduct yourself in a business-like manner by personifying company values and behaviours to increase your chances of a salary increase.
4. Prepare well in advance
Collect all the factual information, supporting documents, and past performance appraisals as discussed above to demonstrate your ability and value to the organisation.
Think through the process before the negotiation. Visualise how you would like the conversation to flow. Write a script if you have to, but keep it simple using precise language to articulate your points.
Research the industry and salary surveys to find out how much the position and your current level of experience are worth. Market research demonstrates that your request is fair and reasonable.
5. Be professional
When you’re ready, ask for a 20-30 minutes meeting with your boss.
Talk less during the meeting, but exude confidence and keep to the facts. Use clear and concise language to put your points across. Use positive and active language like; “I’m committed to the future of this company…”, “I believe as a business we are creating a successful and valuable team…”, “I believe my results justify my salary increase….”
Remember not to get emotional, but stick to the facts.
6. Upskill to remain relevant
The workplace today is moving fast with new technologies. Digital disruption is something every professional should not ignore.