Regardless of where you are in your career, salary negotiations are often a difficult subject to broach. It’s for this reason most people tend to avoid asking for a raise altogether. However, not asking for a raise could mean letting your income plateau.
It is even more important to consider asking for a salary increase if:
You are feeling undervalued after a recent promotion or a significant increase in responsibilities
Your upcoming performance review is looming, and you're wondering how to address the topic of a raise
You’ve been a loyal employee for years and feel your salary hasn't kept up with the times
You work in a high-demand field and know your skills are worth more in today's market.
According to a Robert Half study conducted in November 2023 that surveyed 500 hiring managers from companies across Australia, 47% of employers said years of experience on the job is what determines salary increases the most in their company. It is closely followed by ongoing outstanding performances (42%) and specialised skill sets (40%). So, if you fit in any of these categories, you could be well-positioned to secure yourself a salary increment after speaking with your boss.
No matter your situation, initiating a conversation about a salary increase can be nerve-wracking. But asking for a raise is an indication that you know your worth, and that you’re serious about your career. Here are a few tips on how to talk to your boss about a salary increment to secure the compensation you deserve. Let's tackle this together.
Preparing for your salary discussion with your manager betters your chances of a successfully approved raise. Before you sit down with your manager, here are a few points to consider.
Salary rises are an ongoing journey
Your manager knows that salary hike conversations are a periodic occurrence – they expect it. In other words, there’s no need to worry about the meeting with your manager.
Do your research
Researching salary benchmarks for similar positions in your industry and location will help you determine a specific raise target and strengthen your case during the negotiation. Our Salary Guide is a good place to start researching salaries relative to your experience and position. However, you know how much you bring to the table and how much more you can bring to the table, given the right circumstances.
Compile a list of these qualities to help make your case as well as organise your thoughts during the negotiation.
Rehearse
Practice what you plan to say when you ask your boss for a salary increment. Make sure you have your justification ready so you deliver a clear message.
On top of this practice your responses to potential objections from your boss. For example, if your manager says that the company is not in a position to give raises, be prepared to counter with alternative forms of compensation, such as bonuses, stock options, or increased annual leave.
Know when to walk away
Unfortunately, not all salary discussions with your manager will go to plan, and you may not get the solution you hoped for. If nothing else can be offered in lieu of a salary rise and you are unsatisfied, know when it is time to walk away and potentially look for a new role.
Related: Is it okay to discuss your salary with your colleagues?
Once you’ve defined your worth and your boundaries, ask your manager if they have time to discuss your salary in a meeting or via a video call. Once they’ve gotten back to you with an appointment, keep the following tips in mind for the actual conversation:
Thank your manager for taking the time to meet, and for giving you the opportunity to work in this role. Briefly tell them what you’ve most enjoyed about your time at the organisation so far.
Talk through the value you add to the organisation, and where you hope to go from here. For example, you might say, “In my past year at the company, I’ve boosted sales by 25% using organic leads from social media, at no added cost.” Here, the combination of a tangible percentage figure and your skills demonstrates your value.
This can really be as simple as: “Based on current trends in this field and in this city, most people with my experience earn [$-figure] – I would therefore like a raise of at least [%-figure].”
“The biggest point workers should remember is that these negotiations are in everyone’s best interest,” says Robert Half Division Director Joel Herbert, “employers want to keep their talent, so they’ll likely try and meet you at least halfway.”
Herbert notes that in the event that a monetary increment isn’t possible, it’s “perfectly reasonable to negotiate better benefits” if this is somewhere you’d like to work in the long term.
If you want to, you can say “no.” Walking away is never easy, but it’s important you know what you are and aren’t willing to accept. If you cannot agree on final terms as you re-negotiate your salary, it’s alright to leave.
Related: Should I leave a job for more money?
Don’t improvise. Apart from taking the time to set up a meeting with your manager to discuss your salary hike, it’s especially important that you rehearse what you’re going to say, and know the lowest salary increment (or equivalent) you’d be willing to settle for.
Don’t use vague or timid language. Avoid filler words like “um” and “like” to appear more confident and direct, and try to get to the point – your salary negotiation – as soon as possible.
Don’t be rude. Lastly, while it’s completely acceptable to walk away from an offer that doesn’t meet your requirements, it’s important to stay courteous throughout the conversation.
Looking for a new job? Robert Half can help.
When is the right time to ask for a raise?
There is no perfect time to ask for a raise but during your performance review is the most common time to bring up the subject. After you have made significant contributions exceeded expectations or taken on new responsibilities are also suitable times to ask.
How much notice should I give my manager before discussing a raise?
While there's no strict rule, giving your manager a few days' notice is generally considered courteous. It allows them time to prepare for the conversation, review your performance, and consider your request thoughtfully. You can simply mention that you'd like to discuss your compensation during your next meeting or schedule a separate meeting to address it.
What evidence should I gather to support my request for a raise?
Past performance reviews
Achievements
New responsibilities
Positive feedback
Market research
What should I say to my manager when asking for a raise?
Start by expressing your enjoyment of your role. Summarise your recent achievements and contributions, highlighting how they've exceeded expectations or added value. Then, state your request for a salary increase, clearly mentioning the desired amount or percentage. Explain why you believe you deserve a raise, referencing your performance, market research, and the additional responsibilities you've taken on.
How do I handle objections from my manager?
Respond calmly and professionally. Maintain a positive attitude and show flexibility, focusing on finding a mutually agreeable solution. If budget is an issue, propose alternative solutions like a phased-in raise or additional benefits.
