One in three companies plans to increase salaries in 2024: here’s how to ask for a pay increase

This could be a good time to ask for a pay increase, as new data shows that one in three companies plan to increase salaries and bonuses by 2024.

Companies are more keen than ever to retain employees and avoid being tempted by better offers elsewhere.

A survey by jobs website Totaljobs shows that 29 percent of companies say staff retention is their main focus for the new year, overtaking the need to fill vacancies.

To keep them happy, almost half of the thousand HR workers surveyed said they would review pay and benefits, as well as training and flexible working options.

Securing a pay increase has also been top of mind for employees, with 29 percent responding that finding a better-paying job was the most likely reason they would resign.

Julius Probst, European labor market economist at Totaljobs, told This is Money: ‘Workers continue to demand pay increases in line with inflation, so prioritizing pay reviews is crucial for companies that want to successfully retain talent and keep employees engaged.’

While your employer may be willing to hand out raises, he or she will often only go to those brave enough to ask for them.

We spoke to career experts to get six top tips for securing a pay rise this year.

1. Get the timing right

If your employer doesn’t have an annual review process, it can be difficult to find the right time to ask for a raise.

An obvious time to ask for a raise is when you are up for a promotion or have recently taken on more responsibility.

But the time of year can also play a role, according to career expert and author James Innes – also known as The Jobs Guru.

“Right now is actually one of the best times, with Christmas and New Year behind us,” he says.

‘For many companies the end of the financial year is approaching and therefore budgets are being drawn up for the coming year.’

Otherwise, Innes recommends the anniversary of your start date, which is usually the time of a traditional performance review.

“September is also a good time, after the holidays and before the Christmas period,” he says.

However, it is also worth considering if your employer is experiencing financial difficulties, or if your boss is under more stress than usual, as this may make it less likely that your request will be granted.

2. Know your worth

Before you ask for a meeting to discuss a pay increase, consider how much money you should ask for.

Tessa Hollingworth, North West managing director of recruiter Hays, suggests finding out what people in your role are typically paid – not just in your company, but across your industry as a whole.

Both Hay And Total jobs have payroll audit tools to help you do this.

“If you feel that the industry pay for your role is lower than your current pay, you have the right to take this kind of information with you when you have a meeting with your manager,” says Hollingworth. “However, keep in mind that they are under no obligation to match it then.”

Even when you enter negotiations with data on hand to support your case, be prepared for your employer to try to meet you in the middle.

Innes takes a slightly different approach and says you should be careful about specifying the salary you want to receive.

That can be good advice if your boss has a higher amount in mind than you expected.

Innes suggests setting up a face-to-face meeting with your boss and starting negotiations.

“This gives you and your employer the opportunity to enter into a dialogue, put all the cards on the table and, with a bit of luck, come to a solution that you are both happy with,” he says.

3. Don’t do it in an email

Requesting a meeting may seem obvious, but the temptation to make the request in an email can be too great to ignore, especially if you work from home.

Totaljobs offers this advice: ‘Whether you work from home or in the office, make sure it is a personal request as this is more difficult to decline than a request via Messenger or email.

‘Contact your direct line manager as rising above them will in the vast majority of cases end up being bad politically.

‘The kind of relationship you have with your boss partly determines how you ask for a raise.

‘Boasting the topic informally may prove more successful for some, and can be the start of building a case with more senior stakeholders – but other managers will prefer a formal approach.’

4. Prove your worth

An employer is unlikely to grant a request for a pay increase just because you asked for it.

Instead, the onus is on you to prove to them that your contribution to the company exceeds their expectations.

Innes suggests thinking about the progress you’ve made in your role and what value you’ve added that makes you deserve a higher salary.

Going into negotiations with examples of your development in the role that supports your request will make your case all the more compelling.

Hollingworth says you need to make a business case. “This should be aimed at demonstrating with evidence the value you bring to the company,” she says.

‘Think about the value you add to your employer. If you’ve taken on additional responsibilities and made critical savings, you already have solid evidence to present. Be specific and provide tangible evidence.”

Totaljobs’ advice is to put yourself in your boss’s shoes.

‘Every decision they make will be a balance between their bottom line and the value you add, so make sure you get a comprehensive overview of what you’ve achieved over the past year and what you expect to bring in the coming months or years. come.’

5. Be diplomatic

When negotiating with your boss, it is crucial that you are willing to make compromises to reach an agreement that both parties are happy with.

If you’re not willing to compromise, you could face bigger problems than just a low salary. A diplomatic approach is therefore essential for Innes.

“I’m not just talking about your chances of successfully negotiating the pay increase, I’m also – and perhaps more importantly – talking about the relationship you have with your current employer,” he says.

“If you do it right, it won’t guarantee you a raise, but it will at least minimize the chance that you’ll damage your relationship with your employer in any way.”

If your employer cannot increase your salary, or meet the amount you request, they can offer you alternatives such as more holiday pay, more suitable hours or targets to meet over a certain period of time in order to receive future pay. to get up.

6. Don’t threaten to leave

In addition to being willing to compromise, it is essential not to approach negotiations too aggressively.

When asking for a raise, it can be tempting to let your employer know that you are looking at other jobs, or even threaten to move elsewhere if you don’t get the raise you’re asking for.

Innes says: ‘Many employees find it – rather unwisely – a good negotiating tactic to threaten that they will be ‘forced’ to find another job if their request is not accepted.

‘Such threats can be made very directly, but also subtly implied. But my advice is to make sure you don’t make any threats.’

If your employer doesn’t give in to your threat, you could see your relationships damaged forever, and even if you plan to find another job elsewhere, you may have to deal with the frosty relationship with your boss in the meantime.