While asking for a pay rise can be awkward, one researcher says there are tactics to help improve your likelihood of success.
Australian wages have stagnated in recent years and rising inflation combined with increased cost of living pressures have left workers .
Australians are still living with the consequences of pronounced from 2012 to 2022, according to think tank Per Capita.
A Per Capita report published in March found Australian workers experienced a "lost decade" of wage growth and the average yearly wage today is almost $12,000 lower than it would have been if wage growth had kept up with its historical average over that period.
Analysis from the Australia Institute published in November said Australian workers' living standards had dropped by roughly $8,000 over the last three years.
For those thinking about asking for a pay rise, David Cawley from recruitment company Hays told that there are key considerations to make before broaching the topic.
Bring it up
According to a Finder report published in April, one in five Australians requested a salary raise in the last year, with men more likely to ask than women (24 per cent of men compared to 14 per cent of women).
While Cawley acknowledged that many people are uncomfortable speaking about money and workers may fear rejection, it's usually up to employees to raise the topic of raises.
"There's definitely some forward-thinking employers out there who will potentially broach that topic, typically [via] annual reviews, performance reviews. But generally I would suggest that needs to come from the employee," he said.
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While many businesses have been hit by the same economic stressors that workers are facing and salaries are a significant cost to businesses, Cawley said there's a "right way" to approach the topic.
Do your research
Cawley said it's important for employees to substantiate why they're asking for pay rises and ensure they have the research to support their case for a pay rise.
Understanding salary benchmarks in your industry, reviewing your contributions to the business and being able to articulate your perspective may increase your likelihood of success, he said.
"I think ultimately, for me, it's being able to substantiate: 'Why am I indispensable to my organisation?'" he said.
Consider what you're asking for
Cawley said the need for research also applies to the request itself and workers should have a clear idea of what they're asking for before they enter a meeting.
Workers should have a clear figure or percentage in mind, Cawley said.
In the case that a pay rise isn't possible, it may also be helpful to have a back-up request.
"Salary's not everything. Actually, a lot of the research we conduct and a lot of the feedback we get is salary is important, but time back is more important, and that's worth more than dollars," he said.
"So, if a salary is not forthcoming, what's your backup plan that you can negotiate on that may well compensate for not getting dollars?"
Timing
Timing is also an important consideration for conversations about pay, Cawley said.
For larger organisations, annual review processes may be an ideal time to ask for a pay rise, while for smaller businesses it's advisable to think about the time of the year that could be easiest for the business.
"If the cafe's been closed through December and January because it's the holidays season, your timing's probably not going to be right if you bowl up on the first of February and say 'Right, we're reopening — I'd like a raise," Cawley said.
It's also important to consider that businesses that have performed poorly in the past financial year may be less open to these conversations.
Raise other offers
If you've been offered a role at another organisation, this information can be included in the pay-rise conversation, but it has to be raised tactfully, Crawley said.
"My advice would be that you have been approached by other opportunities and at this stage, you're really happy, you're comfortable in the organisation that you're in and in your position — but it has obviously made you think because one of the components of those jobs is a higher salary," he said.
Speak to trusted sources
While there are many courses or online platforms that can help to improve negotiation skills, Cawley said it is also advisable to get feedback from a trusted colleague or family member to help run through a pay rise request.
"There's a lot of content out there that's going to help you from a 'how to structure' — that sort of thing. But actually it's probably the emotion, in terms of how you deliver and broach that conversation that's gonna help you improve on the negotiation," he said.
