workplace tips

Top 6 Tips For Employers When Asked For A Pay Increase

Performance reviews are a method to evaluate your most useful team members that help drive business growth and determine what changes can be implemented to increase value. It is beneficial to understand that for employees, performance reviews are a point of progression and as such, you may be approached with requests to increase an employee’s salary.

Staff may be eager to discuss and highlight their contribution, which may merit a pay increase. On the contrary, a staff member may perceive they are contributing significantly however their performance evaluation says otherwise, you may be placed in a difficult position to decline their request. Nevertheless, both scenarios of pay review requests should to be handled effectively to achieve the best outcome. 

We’ve devised 6 useful tips on how to facilitate a performance review with a request for a pay increase. 

1. Acknowledge their courage for asking

This should be the first response to any pay increase request. It is important and respectful to recognise the preparation that went into asking what can be considered a daunting question. The employee is providing you with the chance to retain them before they seek a job elsewhere.

2. Don't reply immediately

Naturally, you will have a preconceived idea that you may or may not be willing to grant a pay increase for a particular employee. However, there may be others involved in the decision process. In that case, avoid saying, “I have to ask my boss” or “Its not up to me” as doing so may undermine your authority. Instead, you can say “I’ll get back to you next week” or “I’ll have an answer for you in a week” which lets the employee feel that they won’t be left hanging for an answer and gives you time to talk to those involved in the decision. Replying with “no” can make the employer feel they are undervalued and not worth considering which could potentially result in high staff turnover. 

3. Ask for more information

A simple “tell me more” indicates you are listening to your employee and provides you with more information to assist in making a decision if the request is plausible. 

4. Consider the employee's contribution and progress

The performance review will reveal the additional value the employee has contributed to the organisation. Since the employee commenced working for the company, they could have dramatically progressed in their role and accepted more responsibility but their salary may not reflect their progress and achievements. 

5. Research market rates

A leveraged business position is not the only competitive forefront. Having competitive remuneration packages can assist in employee retention. Is the company offering competitive salaries or incentives? Conduct research into what your competitors are offering for similar roles. You and the employee may also discover that their skills are in high demand.

6. Devise a goal plan

A goal plan can be implemented to help an employee reach objectives and progress in the business. For example, you may set objectives and targets the employee needs to achieve over a specified time frame before considering a pay increase. Setting goals provides employees with motivation to grow, develop and achieve personal and business success. Ensure the goals are time specific and are clearly communicated.

Requests for pay increases are a natural part of management. Implementing these tips can assist in achieving the best possible outcome for the business and the employee.

PKL Recruitment specialises in business support and call centre recruitment services to grow your organisation through high performing talent. Visit www.pkl.com.au for more information. 

About the Author – Phoebe Lane
Phoebe Lane is the Founder and Managing Director of PKL Recruitment. Phoebe founded PKL Recruitment in 1995 with a vision of creating meaningful differences to the lives of candidates and clients. PKL Recruitment is focused on producing high quality placements that benefit both the candidate and the client. Contact Phoebe today via LinkedIn or phoebe@pkl.com.au.

Time For A Performance Review?

Top tips on performance reviews for career growth and development

Conducting your own personal performance review prior to arranging a meeting with your manager allows you to effectively map out your achievements as well as analyse the areas for improvement. Identifying where you have added value helps your manager see the contribution you have made to the business and assists them in developing appropriate rewards, training and development opportunities.

To assist you in maximising your future growth and development opportunities, here are our top tips on how to conduct a personal performance review:

  • List your achievements – review your personal highlights over the specific time period, including examples where you have exceeded targets, met your key performance indicators and where you have performed above expectations. Remember these must be achievements – not just examples of you doing your job. They should be areas where you have added extra value to the organisation through expanding your role and contribution.
  • Areas for improvement – Prepare a personal SWOT analysis. Assess your strengths, weakness and the areas you see as opportunities for growth. Create personal challenges and targets so that when it is time for your next performance review, you have worked on your weakness and developed your strengths even further.
  • What’s your value? – Analyse how you contribute to your team and the effect you have on others. Teamwork is a key trait of leadership. Do you have a positive influence on your colleagues that creates a productive and engaged environment that leads to results?

Once you have completed your personal performance review, have the confidence to arrange a meeting with your manager to discuss your review, and collaboratively set career targets and performance milestones.

Challenge yourself to progress - is it time for a performance review?

About The Author – Shannon Lippert

As PKL Recruitment’s New South Wales Branch Manager, Shannon is responsible for both the Temporary and Permanent Divisions. Since joining the PKL Recruitment team in 2013, Shannon has always lead from the front, guiding and growing the Sydney PKL Recruitment Branch to be one of the most successful recruitment teams in Sydney. Contact Shannon directly on shannon.lippert@pkl.com.au or on LinkedIn.

Expand Your Search For Application Success!

The benefits of a multi-channel job search!

Job seekers are spoilt for choice with new technology and platforms to assist them in their job search. With the abundance of choices available, many job seekers focus exclusively on online job boards and overlook the benefits of a multi-channel search, which includes connecting with a specialist recruitment agency.

 

What are the benefits of online job boards?


Job boards are a good way to start your job search, giving you the opportunity to review the numerous positions available in the market and allow you to explore your options, preferences and interests. They provide a good baseline for initial research into the market and available opportunities.

 

How can you differentiate yourself in a congested market?


Developing a relationship with a specialist recruitment agency is an effective way to broaden your search by adding another job search avenue. Great recruiters will actively search through their current opportunities to identify suitable roles. Engaging with a recruitment consultant is a powerful way to extend your job search as you have the opportunity to engage on a personal level. It also gives you a chance to review your options and refine your interview skills.

A quality recruitment consultant will stay in contact with you regarding the status of your application. Having a professional recruitment consultant representing you also enhances your value and increases your chances of success in the recruitment process.

Whether you are comfortable in your current role or are seeking exciting new opportunities, our team of professional and reliable recruitment consultants can help you!

PKL Recruitment specialises in permanent, temporary and contract recruitment in business support and call centre roles across all industries.

About the Author – Shannon Lippert
As PKL Recruitment’s New South Wales Branch Manager, Shannon is responsible for both the Temporary and Permanent Divisions. Since joining the PKL Recruitment team in 2013, Shannon has always lead from the front, guiding and growing the Sydney PKL Recruitment Branch to be one of the most successful recruitment teams in Sydney. Contact Shannon directly on shannon.lippert@pkl.com.au or on LinkedIn.