How to ask for a pay rise

47% of employees in Singapore are expecting a pay increase of 5-10% this year and 83% are expecting to take home a bonus.

This data is based on Randstad's 2010 World of Work Report which was released in May of last year.  

In a separate survey of 98 Singapore-based working professionals conducted in September, 84 per cent of respondents expect year-end salary increases in 2010. In particular,
• 37 per cent of respondents expect a salary increase of between one and four per cent
• 26 per cent of respondents expect a salary increase of between five and 10 per cent
• 21 per cent of respondents expect a salary increase of more than 10 per cent

Furthermore, 82 per cent of respondents in the September survey expect a year-end variable bonus this year – comparable to the 2010 World of Work Report figure of 83 per cent.

These findings suggest that employees in Singapore expect to reap some financial rewards for the hardships of the last 12 to 18 months. In fact, their expectations echo several key points in the National Wages Council Guidelines 2010/2011, issued in May.

According to the guidelines, the council “recommends that companies should grant sustainable wage increases to employees, taking into account company performance and prospects”. The guidelines also advise companies that still face cost pressures, are yet to fully recover from the downturn or are unable to sustain built-in wage increases, to grant employees variable payments instead.

Yet, with the impact of the global economic crisis still fresh in employers’ minds, many organisations in Singapore are being forced to look at wages and cost-cutting strategies. So how can employees pocket a bigger pay packet without rocking the corporate boat?

The most important thing to remember when asking for a pay rise is that it’s a business conversation about facts and figures. Rather than relying on emotion, concentrate on justifying why you deserve a pay rise. This means demonstrating your professional value by providing concrete, well-documented examples of your achievements.

Positive business contributions can strengthen your hand, so if you managed a project that increased your employer’s business revenue, make sure you highlight by exactly how much. Likewise, glowing reports, performance appraisals and testimonials can all add weight to your request – especially if they demonstrate you’ve exceeded the expectations of your role.

Also remember that preparation is key, so find out how much you, your position and your level of experience are worth before you ask for that extra cash. Or better still, justify your stand with information backed by reputable industry associations.

Timing is critically important for anyone asking for a pay rise. If your organisation is undergoing cost cutting strategies, asking people to work longer hours or requesting staff to take annual leave, they could be signs that it might not be the best time to ask for a salary increase. However, this shouldn’t stop you if you feel strongly that you deserve a raise – but consider the wider consequences of any request.

If you do decide to ask your manager for a rise, pitch it realistically by exploring salary data that shows the range for your position and experience level. Also speak with your ex-colleagues, friends and family, particularly those who work in your field, to avoid making an unreasonable request.

There will, of course, come that dreaded moment when you step into your manager’s office. You might feel nervous but you can mitigate your anxiety somewhat by choosing a good moment for a private word with your manager.

You need to pick your moment, for example, you can increase your chances of success by asking for a pay rise on or before your anniversary of employment, at the end or beginning of a financial or calendar year, or before your company’s next budget sign-off.

Similarly, asking for a pay rise when you’re able to prove that your productivity, duties, or responsibilities have expanded, or when company goals have been achieved, can tilt the negotiations in your favour.

Once in the meeting, remember not to talk too much – you could end up talking yourself right out of a pay rise. Instead, stick confidently to the facts, use active language, and have a figure in mind just in case you're asked what you think you're worth.

Finally, a word on ultimatums. Issuing your manager with a non-negotiable demand is the most common blunder you can make when asking for a pay rise. In 99% of cases, threatening to quit unless your manger lines your pockets is guaranteed to backfire.

A two-way conversation is always going to be more valuable than an aggressive ultimatum, and much more likely to get you the pay rise you deserve.

7 Golden Rules to Negotiating a Pay Rise

1. Choose your time wisely. The best times to consider asking for a pay rise are:
• On or before an anniversary of employment service
• At the end of the financial or calendar year
• Before the next budget sign-off
• When you can justify your duties and responsibilities in your role have expanded
• If you can demonstrate higher productivity or increased revenue generation
• When company goals and targets have been achieved

2. Be prepared: Prepare your thoughts before the negotiation. Visualise how you would like the conversation to flow with your boss. Write a script if you have to. Keep it simple and use clear language which articulates your points.

3. Demonstrate your worth. The question you have to ask yourself is, “Do I really deserve a pay rise and why?” You need to be able to demonstrate the facts with tangible information and proof of your achievements. Provide copies of positive client, peer and management emails, past performance appraisals, reports, results and achievements. If your role has expanded with more duties and responsibilities, this will help with your request, as well as if you can demonstrate higher productivity or increased revenue generation.

Remember, if you conduct yourself in a business-like fashion, you will increase your chances of a pay rise.

4. Do your research: Find out how much you, your position and experience level are worth in the market. Knowing this can add a lot of weight to your request as it shows you have done your research, and that your request is fair and reasonable.

Search for the most appropriate salary surveys which show the pay range for your position and experience level – and make sure that what you are asking for is reasonable compared with market value. Speak to colleagues, friends and family, particularly those who work in your field, to find out how much they think is fair for your salary. Speak to a recruitment consultant that specialises in your field. If you have a good relationship with a consultant, they can also coach you through the process.

5. Keep to the facts and be positive: You need to justify your stand in a confident and business-like manner. Keep to the facts, don’t talk too much and get your point across concisely. Avoid being aggressive or emotional, for you are unlikely to achieve your desired outcome by acting that way.

Use positive, active language like … “I am committed to the future of this organisation” … “I believe as a business we are creating a successful and valuable culture/team” … “I believe that my results show that I am deserving of a pay rise”.

6. Do not offer an ultimatum: Offering an ultimatum such as, “I deserve a pay rise and if I don’t get one I am going to look elsewhere,” is the biggest and most common mistake made by employees. There is absolutely no benefit in asking for a pay rise in this manner and you are guaranteed not to get one using this tactic.

7. Don’t burn your bridges: If you feel that your current employer can’t meet your career aspirations, or they have not lived up to their promises, or you have not been rewarded with a pay rise when you believe you have earned it, then it’s time to find another career opportunity. It is recommended that you find that next career move before you resign. Remember to exit the business in a professional manner with your reputation intact. The old adage is very true: Don’t burn your bridges.