How to get a pay rise at work

Here are 3 ways to get a pay rise at work.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the most important factors for determining your wealth is how much you earn, so getting a pay rise is very important.

Your lifetime's earnings can vary significantly depending on your annual income, so you want your pay to be as high as it can be.

Wage growth has slowed significantly in recent years, so it may take a savvy negotiation to bump up your wages a decent amount.

Here are three ways to get a pay rise at work:

Do well at your job (& prove it), and ask for the pay rise

It sounds very obvious, but unless you show through your work/skill that you're worth a pay rise then there is less chance of it happening.

Your employer might not be tracking your performance closely and they may not proactively give you pay rises even if you deserve it. You should bring your own proof that you've done well such as key performance indictor reports, client feedback or other records you can show of your work.

After you've gathered your evidence you should ask your boss for a meeting and outline why you're worth more because of X. All they can do is say no.

Market research

One of the best things you can do is research and compare your experience and position to others being advertised on Seek Limited (ASX: SEK), Freelancer Ltd (ASX: FLN) and various other employment sites. Recruitment specialists and colleagues could also be sources for comparing your pay.

If you can show that the market average is higher than what you're currently being paid then you may have a key selling-point for your pay rise request, however don't threaten to quit, as that would be counter-productive during the conversation.

Stick to the facts in the meeting, prove to your boss why you deserve a pay rise – not just because you need more money for personal reason XYZ.

Move job

If you've done your research, had the chat and you didn't get a pay rise, then it could be worth considering moving jobs. Definitely don't make the switch without having something concrete lined up first though. Security of income is imperative.

Studies these days show that workers, on average, get pay rises quicker by moving job to job rather than sticking with the same employer. Loyalty seemingly doesn't pay it seems, just like with energy bills.

Foolish takeaway

Good luck getting your pay rise. One of the best things you can do with your pay rise is to pretend in your budget that you didn't get it. If you don't allow lifestyle inflation then you will just be saving more money to build wealth.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freelancer Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Personal Finance

A young well-dressed couple at a luxury resort celebrate successful life choices.
Personal Finance

How to become a millionaire on a $70,000 salary

Want to become a millionaire? Albert Einstein has some helpful advice.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Personal Finance

3 personal finance tips to help anyone grow richer

Our portfolios can do better with the right financial foundations.

Read more »

Businesswoman whispering in male colleague's ear as he looks surprised
Investing Strategies

5 secrets of ASX millionaires

Wealthy people come in all sorts of shapes and sizes, but they all have some common habits that we could…

Read more »

Three generations of male family members enjoy the company as they plan future financial goals together on a trek outdoors.
Personal Finance

Is 60 too old to start buying ASX shares?

It's never too late to benefit from the wonders of the share market.

Read more »

Woman and man calculating a dividend yield.
Personal Finance

Becoming a millionaire: Why savings accounts aren't the answer

Even high-interest savings accounts can't compete with the returns of ASX shares.

Read more »

Tiger staring with a black background.
How to invest

How to make 7% interest while deciding which ASX shares to buy

Also receive Tesla stock for your trouble of just sitting around.

Read more »

Two people comparing and analysing material.
Personal Finance

How does investing in a term deposit compare with buying ASX shares?

Term deposits look attractive for income, but do they beat ASX shares?

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Personal Finance

How quickly could I build a $30k annual passive income with ASX shares?

The stock market can deliver great yields.

Read more »