There are multiple ways to get pay increases at work. Often we accept a new job offer, then start the new position only to realize after agreeing to the initial pay/compensation that the work involves a lot more than we realized. It’s not until then that we realize we’re being underpaid.
Depending on your company makeup, industry, company size, the economy and so many other factors, your options to get a pay increase can fluctuate. If the company is not performing well financially, then that can decrease the types of increases and often they can give increases. If the economy is performing well, then new opportunities for pay increases may be presented or discovered but not shared publicly.
Pay Increase Request #1: Job Offer
As a result, I will start by saying the BEST way to guarantee your immediate pay increase is at job offer. It is imperative to get a full understanding of the job prior to accepting or starting the new role. It is also important to do research to verify that the pay you’re aiming for is possible to achieve.
When moving on to another role, even if it’s the same company, make sure to get a higher compensation than your current pay. Even though you are doing the same type of work, your skills have improved and the knowledge gap is expected to be much less.
Before we move to the next opportunity to present a pay increase request, click here to download this free eBook on the “5 Easiest Ways To Get Pay Increases” which includes a script you can use while negotiating any job offer.
Pay Increase Request #2: Performance Reviews
Performance Reviews should be done no less than an annual basis. Companies that are looking for their business to grow aggressively and/or have a goal to keep their employees engaged typically do performance reviews more often.
This is a great time to introduce company-sponsored Individual Development Plans (IDPs), Career Growth Plans, or Career Development Plans. This will nearly guarantee results for both the employEE and the employER. Those results typically allow both parties to leave with a return on their investment. These plans can be pretty dynamic by including employer-covered fees for employees to attend conferences, get certifications, get an education, get hands-on consistent career guidance and so much more.
Honestly, performance reviews are not only a great time to request a pay increase, but you should expect a pay increase. By this time, you’ve shown yourself approved and have evidence of making money for the company.
Use “The Best Way to Determine Your Salary” to get an idea of the minimum and maximum salary that you should request. After using the links and information in that blog to gather your research, then request a 10-30% increase from your current salary.
Pay Increase Request #3: New duties added to your workload
Many times we take on more duties to broaden our experience, get prepared for a promotion or even to have a good performance review. There are tons of other reasons we take on new duties. Most people do not take on more duties to immediately increase their income. That is the reason why most people do not ask for a pay increase when they become responsible for more duties.
Honestly, the reasons above aren’t bad reasons to take on more duties. The issue is that as we continue to do those additional duties, we get accustomed to those duties, then do not think about an increase in our pay until we become overwhelmed. Most times, others become overwhelmed after additional duties are increasingly added over time.
Initially, when you take on more duties, please do not expect an immediate pay increase. As with anything new, it is expected to have a learning curve where you are still getting acclimated with those new duties and even more time to become seasoned in those new duties.
As you notice that you’re getting more and more compliments on your ease with those duties, that others seek assistance from you about those duties, or that you start being expected to train others on those duties, then it is definitely time to request a pay increase for those duties.
It is highly suggested to request a pay increase during your performance review time. Particularly, if those additional duties were not added as a part of a company-sponsored Individual Development Plan (IDP), career growth plan, or career-leveling type of situation.
Pay Increase Request #4: More direct reports
Pay increases are normally granted, instead of requested, when the company has identified that an employee possesses or has developed leadership skills. Once that is identified, then that employee may be promoted to a People Manager role (i.e. supervisor, team lead, manager, director, etc.).
As stated above, during this time, the company should have already considered a pay increase and perhaps, a title change, when they present the idea of managing a team. If that is not presented, then you should definitely request not only a title change but also a pay increase.
Pay Increase Request #5: Request a Cost of Living Allowance (COLA) Increase
People seem to be very shocked about requesting a cost of living allowance increase. Let’s keep in mind that the cost of living is an expense that we have no control over. This is completely influenced by the economy. For benefits like Social Security Income (SSI), the federal government automatically increases one’s benefits based on COLA. In my opinion, employers should too.
When working for a very proactive company, one listed on Best Places to Work or one that is very agile, then an annual COLA is already projected and budgeted. Once your company agrees to this pay increase, definitely get it in writing. Preferably, get ANY approved pay increase in writing and it is not uncommon to have these conversations documented. It does not have to be documented on an official document. Emails, text messages and in-company chats (i.e. Slack, Google Chat, etc.) are considered documentation as well.
I enjoy reading other HR blogs and I suggest you start looking into other blogs as well. HR Bartender has been around for a while and it’s full of tons of resources. In HR Bartender’s blog “The 3 Things That All Employees Want”, pay is listed first and it’s listed as an employee value proposition.
Please tell me in the comments if you found this helpful.
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