Looking to request a pay increase at work?

One of the most never wrecking things to do at work can be requesting a pay change, it can be the most invigorating and empowering things you do when done correctly but can also be discouraging and sometimes outright embarrassing when done incorrectly. People have their personal motives but most people who work are motivated by money and how much they make, which in turn suggests that we all are eager to make more, so how does that unfold in the workplace?

The concept of a pay change request is a complex one, which requires a thorough understanding of various factors that come into play in deciding pay scales for employees. These type of request are common occurrences in workplaces, where employees often expect to be paid more for their services than they currently are. However, such requests are not always straightforward, fairness and alignment with equity in the workplace must be taken into account. What is equity? Equity in its common definition is to be fair, to broaden its definition in relation to the context of this article equity can be defined as the alignment of pay in reference to similar populous within the workplace, i.e. Financial Analyst in the workplace generally will be paid the same rate as long as experience and or other key factors are similar for each employee.

One of the key factors that comes into play regarding pay change requests within the workplace is the level of performance of the employee in question. It is common practice for employers to link pay placement to the performance of the employees, with high performers being rewarded with higher pay; however, there is another concept that some employers practice, that concept is paying the employee based on the level of experience they have relative to their role. Mapping the level of experience stems from measuring how many years of relevant experience an employee has as it relates to the role they currently occupy or are applying for. The employees job or position is mapped or tied to a specific pay grade which in the best case scenario has been reviewed on an annual basis to ensure that the pay grade is competitive, more to come on this later. The pay grade features a pay range, which can naturally be broken down and placed in a hiring guidelines format, mapping out what pay rate the employee should be at in relation to the amount of relevant experience they have. In contrast to the pay per performance concept, employers often conduct performance evaluations to assess the contribution of each employee to the organization, using this information to determine their pay rate. When an employee makes a pay change request, their performance is therefore an important consideration, and employers may reconsider their pay rate based on their evaluation.

Another factor that determines pay rates is the prevailing market rate for the particular job in question. Employers must ensure that their pay scales are competitive with the prevailing rates in the industry, to attract and retain the best talent. In this regard, an employee making a pay change request may be able to draw attention to market rate trends, and influence a change in their pay scale based on this information.

The nature of the job and the level of responsibility involved also determine pay scales. Some jobs require specialized skills, advanced training, or an advanced degree, which must be compensated accordingly. Similarly, jobs with higher levels of responsibility, such as managerial roles, may attract higher pay scales. An employee making a pay change request must, therefore, be able to demonstrate that their job requires specialized skills or involves a higher level of responsibility, to warrant a reconsideration of their pay rate.

Conceptually we have an idea of what a pay change request is and what It may intel from an employer perspective, what does it look like and how do you approach from an employee perspective? We’ll break this down a little more but to summarize, It is appropriate to ask for a pay increase when you have been with the company for a reasonable amount of time, and have taken on additional responsibilities or demonstrated exceptional performance. It is also appropriate to ask for a pay increase if you have researched market rates for your position and found that you are being paid below the industry standard. However, it is important to approach the conversation with your employer in a professional and respectful manner, highlighting your contributions to the company and providing evidence to support your request.

Firstly, it is essential to understand that seeking a pay increase is not something an employee takes lightly or does without proper justification. Salary negotiations are often uncomfortable and can be challenging. Therefore, when you as an employee approach your employer to request a pay increase, you have more than likely given it a great deal of thought.

There are several factors that could influence why employee’s seek pay increases. For instance, if an employee has been with a company for several years, they may feel undervalued or underpaid compared to their peers due to inflation. In such a situation, the employee may have increased job responsibilities but has not seen an increase in compensation to match that. Alternatively, a pay change request may arise because of an employee's improved qualifications, additional training, or relevant certifications.

As stated above requesting a pay increase by no means is an “easy” thing to do. Typically an employee’s motivations for a pay increase are clear; First, ask yourself why you would like a pay increase? Once you’ve established your reason then ask yourself if your reason is practical and makes sense. Next, be sure you have a sense of what kind of employee you are, a quick side note, self-awareness is key if you don’t know whether or not you’re a high performer or presumed to be a slacker at work you may need to do some self evaluating. After self evaluating and settling on a reason you’ll need to begin to build a solid case, almost as a selling pitch. Begin identifying your point of leverage, to elaborate, identify things you’ve directly contributed to that increase your value as an employee such as the execution of critical projects, training and support of other team members, or anything alike. Leverage items are great to use as bargaining chips, one would say that the aforementioned leverage items are considered duties and responsibilities featured in your job description; however, they are still accomplishments that often tie directly into annual performance evaluations, so why not use those to your advantage when you’re requesting a pay increase.

Having clear and concise motivations for these type of situations can result in a boost in confidence and having confidence when discussing your pay is of the utmost importance for what can be perceived as a nerve wrecking task. Timing of your request is critical, there are certain times of the year where employers are more likely to say “Yes” as there are times where you are more likely to hear “No”. Understanding the timing of major events and special projects at your employer is helpful as well. Ideally, you want to avoid asking for an increase shortly after you’ve received your annual increase, issued by your employer via the annual merit/reward cycle.

Try to consider 2 months before your companies annual increase and at least 2 months after the cycle as off limits, asking for an increase around the time periods mentioned will more than likely not receive a warm reception from your leaders and or HR, mostly due to budget conversations, and or broader annual planning going on at the time. Other ill-advised times to inquire could be if your organization is going through layoffs, wide-scale pay cuts, going through a merger or something alike. Companies tend to tighten up on salaries and wages around the previously mentioned workplace events. From a personal perspective try asking about for a pay increase if you personally or perhaps your team is having a really rough few weeks or if your performance and attendance at work hasn’t been the best then you should probably hold tight for a while until things are on the upswing.

The section above may not be the most encouraging when considering timing, honestly it looks like there’s never a right time to ask, well there are in fact a number of “right times” to ask. Often time employers release public financials or at least give insight to financial performance internally on a regular cadence, paying attention to that schedule will benefit you in the long run. If your employer communicates positive financial performance for a few consecutive cycles use that as an opportunity to reap rewards for yourself, by all means as an employee you have a stake and contribute to the overall success of your organization. Keep track of your projects and accomplishments, those can be used as indicators of your success, suggesting you deserve a pay increase because of your commitment to the overall goal of your role as an employee.

To conclude, the concept of pay change requests is a complex one, which requires a nuanced understanding of various factors that affect pay scales in the workplace. Employees making pay change requests must be able to demonstrate that they are deserving of a change in pay, based on their performance, the prevailing market rate, their relevant experience, and the level of responsibility involved in their job. Employers, in turn, must be able to fairly evaluate such requests, to ensure that their decisions are based on a sound understanding of the various factors involved, and that they are providing fair and equitable compensation to their employees. Knowing the process is just the first step in the process, taking action is the final step, this article proves that it is possible to request a pay change; however, It also provides perspective on the ins and outs of the process as an employee as well as an employer.