Win Big: How to Ask for a Pay Raise You Know You Deserve

Do you think you deserve a pay raise? You’re not alone. That said, asking for a pay raise can be tricky and nerve-wracking.

Negotiating your salary can feel like a difficult conversation. Whether you are seeking an increase in your current position or applying as a candidate for a role, the "money talk" is never easy. The latter may even doubt whether the pay package is up for discussion lest they risk losing the offer. Moreover, fresh graduates are always hesitant to talk about how much they are worth and how much they expect an employer to pay them, especially since they have little or no work experience.

How to ask for a pay raise is an art, especially in Asia where cultural factors also make bargaining a challenge — even when you know you deserve it. According to Forbes, only 46% of men and 34% of women take their chances and negotiate their starting pay.

Yet people are entitled to seek the pay they deserve, regardless of what level you are in your company – or how long you've been there. If you're truly confident of your value to your employer, there are ways to ensure success and increase the odds of getting a fair pay package. Firstly, get to know more about how the process works. Understanding the rationale behind salary increases in your company can help you develop a foolproof strategy. Or, you can read our tips on how to ask for a pay raise below.

When Are You Entitled to Ask for a Pay Raise?

Generally, employees who have been with a company for at least a year are entitled to seek a pay raise. Some companies automatically increase wages by specific percentages each year — in which case, requesting a pay raise may not be necessary if you already expect a boost to your salary by the end of the year. However, there may be special circumstances where actively seeking a pay raise may be necessary.

• You are taking on current responsibilities that are above your pay grade. If you took on additional tasks, or simply realised that the role's demands do not match your current compensation, then it may be time to speak to your HR officer about a salary bump.
• You showcased a remarkable job performance. Whether you have consistently surpassed company targets in the past months, achieved an outstanding milestone for the organisation, or continue to perform above expectations, it is time to bring those wins to your boss’ attention as you have demonstrated that you are an asset to the company.
• Your compensation is below the market average. Research how much others within the same role in different organisations earn. If you find out that you are being paid lower than the average, now is a suitable time to broach the issue with your manager.

Is There a Suitable Time to Ask for a Pay Raise?

Companies are usually open to giving pay raises if you have been with them for at least a year. But if you feel that you cannot wait a year before you ask for a salary increase, check in with them at least after six months, provided that you have demonstrated that you are an asset to the company.

The best time to bring up a pay raise is right after an annual job performance review, where appraisals of your work can immediately justify the need for a raise. But if your organisation has yet to conduct these reviews, other timings may make it appropriate to request a bump in your pay grade.

Here are other tips to take note of to get the pay raise you deserve.

Timing Is Everything

When it comes to asking for a pay raise, timing is everything. The best time to do this is if you are sure that the company is in good financial standing or has posted strong quarterly earnings. Has it been a smooth-sailing and financially stable term? Did the company increase in profits? Or perhaps you landed a big deal for the company or allowed the organisation to save money. These will clue you in on whether it is time to talk to your manager about possibilities for a salary increase.

Conversely, if a company has just lost a big client or a succession of projects, if they have laid off employees or announced a hiring freeze, or it is a particularly hectic quarter for the company, then you may want to hold out for a better time.

Do Your Homework

Be prepared before heading into your manager’s office. Learn about your employers' hiring and salary policies. For example, some companies have fixed maximum percentages they will allow annually or specific processes to get past to green-light a salary increase. This way, you can make a compelling case and might even negotiate on a technical basis.

Your Current Pay Does Not Matter

The amount of your pay raise should not be dictated by how much you are already earning. Rather, it should reflect your current market value in the context of current economic conditions and the average salary of your peers. If you think you’re being underpaid or have recently taken on more responsibilities at your company, do your research about the average salaries of other professionals in your same position.

To learn how much the average wage for your industry and level is, you can visit the JobStreet 2022 Salary Report.

Know What You Are Worth to the Company

It can be easy for employees to undervalue their talents and work, often leading to a rate that they are not happy with. After doing your research on the average rate for your industry, it is also necessary for you to know how much your contributions to the company are worth. Upon talking to your manager, you need to be able to justify your worth in terms of past contributions as well as how your skills and experience will help the company achieve its goals in the long run. Unless you have a figure in mind, the outcome of your negotiation will likely be dictated by your manager.

Have a Plan B

What happens if your manager does not approve your pay raise? It is crucial to have Plan B or a counter-offer to fall back on. Think of your working arrangement holistically. While you may not be able to get your ideal lump sum, other factors may make your compensation more agreeable. You can negotiate for better benefits — these include asking for more health benefits, higher holiday pay, a more flexible remote working arrangement, as well as a budget for training and upskilling. You must also look at the big picture of your career and study what else you can benefit from this negotiation.

You deserve the right pay for the right job that matters to you. If the next step is to move on to a new career opportunity, then #LetsGetToWork ! JobStreet can help you find the right role that motivates you and compensates well according to your skills and abilities.

For more expert advice on enhancing productivity, and climbing up the career ladder, visit the Career Resources page. You can also download JobStreet’s app available on the App Store and Google Play.