4 foolproof tips for clinching a pay rise

September 11th 2017 | Categories: Budgeting & Goals | | Tags: #income |

Real income growth is slowing in Australia. The latest figures show wages increased just 1.9 per cent annually between June 2016 and June 2017 – the lowest since Australian Bureau of Statistics records began.

This could affect your finances and planning for retirement, so maybe it’s time to take matters into your own hands? Here are our tips for getting a pay rise in Australia in 2017.

Thinking of asking for a pay rise? Get in touch to discuss your plan and budget to ensure you reach your dreams and goals.

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1. Ask at the right time (which experts say is now)

What is the best way to get a raise in Australia? Ask for one. Even Reserve Bank of Australia boss Philip Lowe recently urged workers to put their hands out for more money.

If you’re wondering how often you should ask for a pay rise, it could depend on your employer’s approach to salary evaluations. Asking at your next pay review is an option, but you’ll want to raise the issue sooner if you don’t have one coming up in the near future.

2. Know your value and be realistic

Your performance is just one aspect in whether or not you get a pay rise.

Organisations have to weigh up your colleagues’ wages, the business’s financial performance and size, and your department’s overall contribution to revenues.

Manage your expectations by researching the earnings for comparable roles in your sector. Do your skills measure up to your salary demands?

Your chance of success when asking for a pay rise in Australia in 2017 is about 50-50.

3. Apply for other jobs

This strategy could clinch you a pay rise in two ways. You may secure a new role at a higher salary elsewhere, or your current employer could bump your wages to encourage you to stay.

A Robert Half survey found 94 per cent of Australian CFOs had made counter-offers in a bid to retain important employees. One-third said they always make a counter-offer.

4. Be prepared to negotiate

Your chance of success when asking for a pay rise in Australia in 2017 is about 50-50. Recent Hays Australia figures revealed that 32 per cent of workers sought an increase over the last 12 months, of which 17 per cent came away happy.

But you may not have all your demands met even if you’re successful. Remain cool, calm and persuasive during the meeting, and leave yourself some wriggle room on your initial offer.

Do you want to learn more about how often to ask for a pay rise and how much to request? The answers will depend on your current finances and plans for retirement, so please get in touch to discuss your personal situation.

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What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.