How to ask for a pay rise and negotiate salary

Employers may have many reasons for keeping a tight lid on salaries, and changing jobs doesn’t necessarily guarantee a significant pay rise. So how can you work out what salary you could reasonably ask for?

Know your market worth

First of all, find out what the “going rate” is. Check current job adverts and salary information online, and speak to recruiters or people working in your sector to understand the typical salary range.

Your market rate may depend on factors including your experience, industry, location, responsibilities, specialist skills and demand for people doing similar work.

Consider your total package

If you do discover jobs with better salaries, remember that “pay” is only one aspect of your total remuneration package and a raise doesn’t always equate to a better overall deal. Weigh up every benefit within the package, including annual leave days, bonus, staff discounts, overtime rates and allowances. Pay particular attention to pension arrangements and other valuable benefits, as these can differ significantly between employers.

Timing

If you think you have a good case for asking for an increase in your current company, and your organisation has a regular pay-review cycle, it can be useful to start the conversation with your manager in advance. Help them to understand your case by sharing your market research.

Similarly, think about the added value that you now bring since your last pay review. Have you taken on more responsibilities? Have you improved your expertise in your own time? Have you taken on responsibilities that weren’t originally part of your role?

Think about the strongest evidence you have for your request, whether that's increased responsibility, your contribution, additional skills or how your salary compares with similar roles.

Be assertive

If you decide to “jump ship”, and a role is advertised with a salary range but you're offered a figure towards the lower end, ask what determines where someone is placed within that range.

If you've been offered the role, the employer has decided they want to hire you, so don't be afraid to ask questions about the offer. Ask them to clarify the extent of your development needs so you can understand whether there is scope to negotiate a figure closer to the maximum salary.

Once you have a formal offer, you may have an opportunity to discuss the package before accepting it. Your starting salary can influence future pay increases and, in some organisations, other elements of your remuneration, so it’s worth considering the offer carefully.

Don’t blow your chance by being arrogant, but don’t be shy either – this is an opportunity to negotiate the best deal you reasonably can for yourself.

Whether you're asking your existing employer for a pay rise or negotiating a new offer, go into the conversation knowing your market value, the evidence behind your request and what matters to you in the overall package.