The Insolvency Service of Ireland recently announced that most people have some form of debt. Unfortunately, the prospects for getting out of debt are now grimmer than ever - with inflation at its highest level in almost 40 years and interest rates on the rise. And it looks like there’s little sign of this reality changing. No wonder then that the National Youth Council of Ireland should report that young people have lost confidence in the country to meet their aspirations, with 7 in 10 aged 18-24 considering moving abroad, because they think they would get a better quality of life elsewhere. Put plainly, many employees are finding that no matter how long or how hard they work, the ends simply don’t meet up.

As a consequence, the subject of looking for a pay rise now looms large. So, it is encouraging that the American-based pay specialists PayScale’s research has found that nearly 40% of those surveyed said that they actually got the pay rise that they asked for, whilst another 31% said they got some of what they asked for. However, like Dicken’s Oliver Twist, the prospect of approaching one’s employer to look for more can be daunting.

So, this article offers some practical advice as to how one might broach such a sensitive subject.

1. Find The ‘Right’ Time  ⚓︎

Picking the right time to pursue a pay rise can make the difference between getting it and getting into hot water! Hence, it is advisable to agree a pay review meeting time, rather than rushing in unannounced and putting demands on a busy manager. Of course, many employers have periodic salary reviews, so it’s probably best to hold fire until such time.

Various factors can determine an employer’s response to the request. Probably the most crucial criterion for an employer is the financial health or profitability of the business. That is, the more profitable the business, the better the chance of a positive response (and vice versa). In fact, the aforementioned PayScale study found the most common reason employers said ‘no’ to a pay rise request was budgetary constraints—a rationale that many respondents said they didn't believe.

2. Prepare ⚓︎

Given the stakes at a pay review meeting, it is essential to prepare your case well in advance. This includes listing your achievements - how you ‘add value’ – with particular emphasis on what you’ve done since your last review. List all contributions, cost-savings, productivity improvements, work-related personal development initiatives and goals or targets that you’ve met. And remember, it is important to be able to show how they have helped the organisation.

It is also helpful to research pay rates and salary trends in similar roles in your region. This allows you to assess your pay status vis-a-vis industry standards. Pay rate research in Ireland has never been easier, with a host of sources offering extensive and detailed information (e.g. see the websites of CPL, Brightwater, Lincoln Recruitment, Hays, Payscale, Matrix Recruitment, MorganMcKinley and Irish Jobs). Useful information can also be gleaned from talking with your peers and contacts, professional associations, social networks and through job advertisements for similar roles in the locality. Such sources can help to determine a fair or ‘market/going rate’ for the job that you’re doing and to set a pay increase goal that can be adjudged to be  reasonable in the circumstances.

Likewise, it is important to know what the ‘norm’ is in terms of pay rises. For example, it may be relevant and persuasive that public sector workers in Ireland are currently in the process of accepting a 6.5% pay rise offer for the Feb. 2022 to December 2023 period under the ‘Building Momentum’ agreement. This agreement provides for an initial increase of 3% backdated to last February, followed by further increases of 2% and 1.5% or a higher sum of €750 for lower paid workers. It is also relevant that these rises are in addition to 1% or €500 (whichever is greater) that’s due at the beginning of October 2022. In fact, the minimum payment of €750 a year with effect from October means a total package worth 8pc to workers earning €25,000 and 7pc for those on €37,500 a year.

Turning to the private sector, it is notable that the Irish Congress of Trade Unions’ Private Sector Committee increased its original (late 2021) pay target of between 2.5 to 4.5% to a new range of 2.5 to 5.5%, whilst urging a push for ‘additional benefits’. Notably – like inflation - some settlements have actually surpassed this guide. For example, in mid-2022 Tesco Ireland announced a 10% pay increase, whilst the recent Government-approved recommendation for the 2023 National Minimum Wage represented a rise of 7.6% (from €10.50 to €11.30 per hour).

However, as with inflation and cost-of-living related arguments – relevant though they may be - it is not your employer’s responsibility to fund your chosen lifestyle. So, successful pay negotiations are commonly based on one’s merit and accomplishments, not just why one needs the additional money! Whilst knowing the ‘going rate’ for a job is an essential part of one’s armoury, it is also important to be aware of the knock-on effects (for co-workers) of your demands – as this may well feature in your manager’s reflections and response. Furthermore, an over-emphasis on co-worker comparisons won’t always be helpful, as the meeting is about your pay and why you deserve a rise.

It's also relevant that staff recruitment and retention are burning issues for many employers right now – and the market for jobseekers is buoyant. However, it may prove reckless to threaten to quit if you don’t get a raise, as your bluff could be called. Furthermore, this tack may be viewed as indicative of low loyalty to your current employer and as a result may not benefit your negotiation stance. Of course, in some circumstances - - if the new job offer is too good to ignore - you may decide that your next move depends on whether you get an increase. In such scenarios you can simply explain that you explored the market, but for specified reasons would prefer to remain where you are.

3. Rehearse, Rehearse, Rehearse  ⚓︎

So, don’t try to conjure up reasons for the pay rise ‘on-the-spot’.  Prepare a list of bullet points, with a supplementary script or sentences. This should include a statement as to why you’ve asked for the meeting, all of the supportive reasons associated with your salary/pay rise target and include a summary of your strengths and relative salary.

As most managers are already aware of the trials and tribulations associated with rising costs, stiff rental charges and your prospects for getting on the first (or higher) rungs of the housing market ladder, it will be more persuasive to emphasise the business benefits of your ongoing presence with the organisation. Having assembled the information, rigorous rehearsal is the best way of overcoming any anxiety about the forthcoming meeting. That is, preparing your lines will help you to feel confident, both before and during the meeting. It will also prove beneficial and give you the best chance of success if you familiarise yourself with some of the tricks, tactics and techniques commonly associated with the ‘art of negotiation’ (see How to... Get the Best Deal in Negotiations).

4. Ask for The Meeting and Dress For Success  ⚓︎

Unless periodic pay reviews are already part of your organisation’s normal process, take the initiative and ask your manager for a meeting in person (or via an online platform should that be the norm). Put aside at least half an hour to talk about your pay rise request – with Friday afternoons offering the best chance for an upbeat exchange!

How you present your case and how you present yourself can contribute to a successful outcome. For example, when the Cork hurlers went on strike in 2002/2003, it was reported that as part of their preparations for negotiations with the management ‘the players were primed. Everything was discussed, right down to what they would wear’. So, the message conveyed by one’s appearance should tally with the message you want to convey. That is, dressing in a ‘business-like’ manner for the meeting will help to convey the right impression – to see you as a serious and considered member of staff. So, think in terms of the impression that you’d want to make at a job interview or at a professional presentation.

5. Ask for The Pay Rise  ⚓︎

Having broken the ice via the normal ‘chit-chat’, you're now ready to ask for the pay rise. Don’t rush it. Simply take your time delivering your prepared script and don’t be afraid to maintain eye contact to show that you have confidence in yourself and your arguments. Give your manager time to respond. Before negotiating, they may want more information about some of the points that you have raised. If required, don’t be afraid to ask exactly why your request cannot be met.  The reasons may include profitability/budgetary constraints or the need for you to have a wider range of skills, training and/or responsibilities.

So, instead of arguing the toss, simply ask questions about what exactly is required to enable you to get (what you deem to be) ‘a fair day’s pay for a fair day’s work’. It’s now time to present your (prepared) questions about:

• how your performance, contribution and achievements are perceived;
• the skills, responsibilities or achievements required for the pay rise;
• when the pay review conversation can be resumed.

Of course, given the aforementioned focus on ‘benefits’, one could also inquire about some of the non-financial compensation options (e.g. perks like flexible work, bonuses, remote working, company car usage, overtime or tax-free vouchers as raised recently to €1,000 per annum in the Budget).

6. Say ‘Thanks’  ⚓︎

Regardless of the outcome, it’s common courtesy to say ‘thanks’ for the meeting. This should be done at the meeting’s close and again via a follow-up email, wherein you (carefully) summarise your understanding of what has been agreed at that meeting. As one Human Resources Manager (with a legal background) recently put it: ‘If it’s not in writing, it doesn’t exist’. And make sure that you retain a copy of this e-mail!

So, if you’ve got a good case, go for it, because if you don’t ask, you won’t receive. And no doubt, whatever happens, you’ll fare much better than Oliver Twist did!