Is it time to ask for a pay rise?
Without doubt over the last two years there has been a significant shift in the employment market. The engineering sector in particular, has always been tight in NZ, but Covid has now made it even tighter. Having gone from open borders with wide choice available for employers, we now have much greater competition among employers than we do among candidates.
There continues to be growth, however with a continued lack of skilled engineers in NZ, and worldwide rising inflation, we may now see some stagnation which will be putting pressure on businesses. Therefore, any approach for a pay increase needs to be a considered decision.
When there is a rise in inflation, often the first expectation is that everyone's salaries will go up. Whilst I’m a big advocate of salary increases; it is primarily if they are warranted. So, what warrants a salary increase?
Increased workload
With staff shortages putting increased pressure on current employees and employers, the workload naturally increases. This warrants making time to talk this through with your manager, especially if it is an ongoing or long-term thing.
Lack of a significant pay rise over an extended period of time
Movement in salary can vary from company to company however, if you are seeing very little movement despite being a solid consistent performer, you need to talk about this with your manager, especially if you are happy with the work you do, and the company you work for.
Market salary
You have researched the market salary for your level of experience and performance and you are in fact underpaid.
You can do your job with little involvement or management
When you get to a point where your manager no longer needs to provide guidance and assistance, this is a definite sign that you have reached a point of ability to work autonomously. Especially if you are showing initiative.
You have developed new skills
Bringing additional skills into the business provides for efficiency and quality of work that benefits both yourself and the business you work for.
So, how do you go about putting your case forward to your manager?
You must be prepared. You can’t start a conversation or meeting regarding salary without preparation. This involves highlighting what you bring to the company. By this I mean the following:
If you haven’t been provided with feedback lately, ask your manager about your performance and abilities and what he/she thinks about this. You need to ask this question before going any further.
Highlight where you started to where you are today, from your perspective.
The value you feel that you are adding to the business.
The successful work you have produced and the outcomes for the business.
Always stay calm and professional throughout the meeting and don’t allow emotion to become part of the conversation.
Be prepared to negotiate. The increase you would ideally like may not be achievable at that time, so be prepared to find a middle ground that will work for both parties. Also take into consideration any other benefits you are being provided with such as vehicles or allowances etc.
Having salary discussions can be a nerve-wracking thing for some people, however it needn’t be if you approach it in the correct manner.
About Simone Storey
Simone is an experienced Recruitment Consultant who specialises in recruiting intermediate through to management level engineers particularly in the structural, civil, mechanical and fire sectors. These particular sectors provide unique recruitment challenges, something of which she is very familiar with.
Her background also brings a results oriented and people focussed perspective, along with a solid understanding of the needs of both employer and employee. Simone has a focus on building these relationships to add value for both candidate and employer alike, for her recruitment is not merely a transaction.