KEY POINTS:
Staff wanting a pay rise need to approach their manager with facts and figures, rather than rely on emotion, if they want any chance of success, says the president of the Human Resources Institute.
Bill Shields says people need to be well prepared and to adopt a flexible
approach when asking for more money. He says cash isn't everything and things such as flexible working hours, that allow parents to have time with their children during school holidays or access to training schemes, should also be considered.
"I think the first thing staff need to do is to fully understand the employment agreement and what the clauses are within that which relate to salary increases," says Shields.
"Is it performance based, is there an annual review and what is the criteria - if any - that's set out in the agreement?
"If you are required to do A, B and C, but you are also doing E, F and G, then there may be a case for negotiating more money."
He says anyone asking for a pay increase needs to be well prepared when going in to bat for themselves.
"Staff need to explain to their managers why they think they are worth more. The fact their mortgage has gone up doesn't really work well in the present environment because employers are finding it hard to make ends meet with the increases they have had in their costs.
"I would suggest staff approach their employers from the perspective of what they can offer, how they have been performing and where their salary sits in the market place."
Shields says it is a good idea to compare your job and its salary against what other people earn doing a similar job in other firms.
But he says it can be hard for employees to get that information, as it is normally sold to companies by specialist salary survey firms.
"Employers can often get these figures from remuneration firms who frequently undertake salary surveys. But it is harder for staff to get them.
"But sometimes unions can get or will already have that information so they can help their members. The Department of Labour website may have some information to help people.
"The more preparation people do the better. It is not advisable to just turn up asking for a pay rise."
One thing some employees are doing is applying for a similar job with a competitor to see what they are offered and then going back to their employer, pointing out the better package.
"The risk is that the existing employer may say 'good luck' and advise their staff to take the job," says Shields. "It could backfire on them.
"But one issue in favour of staff at the moment is that employers are operating in a tight market. Ten years ago, when there was higher unemployment and not such a critical skill shortage, it probably would have been a lot harder to mount a good argument for more money."
Shields says some people should consider looking for benefits that are not salary based.
An employer may have a training budget that is overflowing with cash with options for staff to do part-time study or to go on courses related to their career.
"The training courses most companies offer will be designed to help them and the employee," says Shields.
"And that training may fit a career path that's offered by the company."
Jarrod Moyle, manager of reward practices at recruitment firm Sheffield, says different companies have different philosophies when it comes to offering more money to staff.
"Some will choose to give a cost of living rise across the board - but others won't," he says.
"The best argument for a pay increase is to demonstrate how your responsibilities have changed or grown to show that your role is significantly different to last year, rather than just relying on the fact it may cost someone more to pay the mortgage."
Of course, rather than take on extra responsibility and then make a case for a pay rise later, it is best to negotiate extra pay at the same time.
It can seem mercenary to grab a pay rise every time the boss asks you to do more work, but you'll be respected for it and you'll feel better doing the work knowing you are getting paid for it. And if you do get a pay rise, be sure to thank your manager for it. Even the boss likes a "thank you" now and again.
WANT A RISE?
* Approach management with facts and figures.
* Keep in mind that there might be benefits available that are not salary based, like training courses.
* Explain why you are worth more, outline the extra responsibilities you have taken on.
* Be well prepared and know the terms of your contract.
* Do not rely on an increase in your mortgage to ask for more money as they are probably experiencing an increase in costs, too.
* Contact Steve Hart at www.stevehart.co.nz
