Yahoo Finance Negotiate the salary you really want in 2023
No one’s salary is as generous as it was last year, thanks to increasing amounts of it being eaten up by rising costs.
This is despite the fact that public sector pay hit its highest level in 22 years, reaching 5.8pc in the three months to May, according to the Office for National Statistics (ONS). Private sector pay, meanwhile, grew by 7.7pc – the fastest pace on record outside of the pandemic.
This – and the fact that unemployment levels are low – means workers are in the driving seat, presenting a great opportunity to press your employer for a pay rise.
There’s no guarantee you’ll get what you ask for, of course, but there are steps you can take to improve your chances.
Here, Telegraph Money explains how to go about negotiating the salary you really want.
Does your employer have to give you a pay rise?
Contrary to what many may think, employers are not legally obliged to grant pay rises every year, unless they’re necessary to keep up with rates for the National Minimum Wage.
Jayne Harrison, head of employment law at Richard Nelson LLP, said: “The only exception is if your contract of employment has a specific contractual provision within it.”
This might, for example, state that the employer may review your salary every 12 months.
Ms Harrison added: “Even if the salary is reviewed it does not mean it will be increased.”
As an employee, you are totally within your rights to have the pay rise discussion, but your boss is under no obligation to agree to anything.
How much money should you ask for?
When it comes to asking for a pay rise, there are no set rules.
The key is to decide in advance how much you’d like. You’ll need to do a bit of research to understand your worth so you can negotiate towards a realistic figure.
Be aware that some companies will only grant a pay rise of 10-20pc without having to get additional authorisation at a more senior level.
Lisa Brennan, HR consultant and career coach at Strategic Ambitions, said: “If you are looking for an increase of more than this, and you can justify it, there really is no rule.
“Ask for what you think that you and the role are worth to the business. If there is a little bit more red tape to get through for your manager to justify it, it may take a little longer. But it will be worth it when the increase is approved.”
Ahead of any meeting, check salary guides within your industry. You can find useful tools on sites such as Totaljobs, Reed and Indeed. Speaking to recruiters can also be helpful.
Ms Brennan said: “Preparation is key. Find out what companies of a similar size, in the same industry sector, in your location, are paying. Look at job boards to see what is being advertised.”
You need to focus on demonstrating the figure you’re asking for is reasonable and fair.
Rachael Gunn, consultant and workplace expert at Rachaelgunn.com, said: “For me, deciding whether someone should have a salary increase should be based on three primary factors: company performance, your performance, and the benchmark of pay rates in your role internally, and in the industry.”
Now read: The pay rises you need to beat inflation
Justifying your request
You’ll need to give your employer a reason for why you think you deserve a pay rise – simply wanting more money won’t usually cut it.
Take the time to go through everything you’ve achieved over the past 12 months. Think about how you have performed, how you are meeting the requirements of the job, whether you have taken on any additional responsibilities, and what results you have delivered.
Emily Button-Lynham, career and life coach at Emilybuttoncoaching.com, said: “As well as tasks achieved, it could also be relationships you’ve made – both internally and externally – as well as any innovative work in progress.”
Have this justification ready in a format you can easily present and discuss. Be sure to base your request on facts.
Ms Gunn added: “Having emotional reasons for wanting a pay rise is going to get you nowhere fast. Approaching your request like a business case is going to have a much higher chance of success.”
Be prepared to negotiate
Ahead of the meeting, be clear about what you want to get out of it – and what you are asking for.
Also prepare for the fact you may need to negotiate. Have a figure in your mind of the smallest payrise you’d be prepared to accept.
Jo Ayoubi, co-founder of workplace culture specialist Track Surveys, said: “Only bring this out if absolutely necessary. Always start high before lowering your expectations.”
Also consider anything else you may wish to ask for in terms of your overall remuneration package.
Think about an extra bonus, additional employer contributions being paid into your pension, or other additional benefits aligned to your own personal circumstances.
Make sure you ask at the right time
As a guide, look to make your request no sooner than six months after joining the firm, and don’t ask for a pay rise more than once a year.
While you might be thinking about waiting until your annual performance review, this could be too late, according to Ms Gunn.
She said: “Companies are finalising their budgets and cashflow forecasts months before the financial year-end.
“I recommend putting your request in three or four months prior to this, so the firm can put a business case forward if needs be, and plan for it in their budget for the next financial year.”
That said, every company is different, so it’s worth checking with your manager when pay reviews are done. You could also ask the question as to how salary increase requests are evaluated.
Practice makes perfect
Try having a mock pay rise negotiation with a friend or family member. Ask them to play out different scenarios, as this will help you to be more confident when having the conversation for real.
Ms Ayoubi said: “Even if your friend just says ‘no’ or ‘tell me why I should give you this pay rise,’ it’s a chance to practice what you want to say and how it will sound. Repeat until you feel confident.”
How to broach the subject
You may be tempted to raise the subject over email, but experience shows asking for a pay rise in person has a far higher rate of success.
Ms Harrison said: “Some people believe it is harder to turn down a request made face-to-face, although you may want to make your request in writing, so you have a record of it – and any response.”
You’ll need to be upfront about what you want to discuss.
Ms Brennan said: “It’s common for people to put off having the conversation because they are not confident about it, while also being worried the response won’t be the one they are looking for. But the old saying ‘if you don’t ask, you don’t get’ is very true.”
Request a chat with your manager and state that you want to talk about your salary level. That way, they are not blind-sided, and both of you get the chance to prepare.
Leanne Cooper, career confidence coach at Youfirstcoach.co.uk, said: “Book a specific time-slot and let them know what you’re wanting to discuss, rather than going in for an off-the-cuff conversation that could be interrupted, cut short or ill-timed.”
When you’re in the room, be direct, but not confrontational. Say what you want, and back it up with fact-based reasoning.
Then, critically, ask for your manager’s feedback on your request, and what support or advice they can give you to get what you are asking for.
Do not threaten to leave if you don’t get what you want.
Ms Gunn added: “No one likes to be held at gunpoint. Your manager can be an important ally in this; they are likely to be the ones that will put your case forward, so keep them on your side.”
Be prepared for rejection
Even if you present what you deem to be the strongest case possible for a pay rise, you may still get rejected.
Remember there may be external factors that have had an impact on your chances, such as budgeting or restructuring. These are beyond your control.
If you do get turned down, accept graciously and ask when your employer will next be looking at reviewing salaries.
Also, keep the positives in mind. You have now started a conversation about the value you’re adding to the firm, and opened up a dialogue which you can then revisit in six or 12 months’ time.
This article is kept updated with the latest information.
