Interest rates and prices going up, salaries are also going up, but still many employees would prefer to resign than actually ask for a pay rise. Why? Because they are too embarrassed and don’t know how!
The fact is – good employees are hard to find at the moment. Keeping good employees is one of the main focuses of businesses at the moment. However each job has a specific value it brings to the business, go past that value and you are effectively robbing your boss. Being significantly under that value – and your boss is robbing you! Finding the middle ground, that fair exchange for services is not that easy.
As an employee your job is to make products and give them to someone else in exchange for something. For example – you make mouse traps; you give them to the shop owner who pays a wholesale price back to you. The more mouse traps you make and the shop owner actually buys – the more valuable your services are.
Have a look around your office – are you making and passing on more mouse traps than the person beside you? Are they getting paid more than you?
Remember you are an asset to your employer – the better you are at producing valuable products the more your employer will want to keep you – and be inclined to give you more responsibilities and hence even more opportunity for pay rises.
Perception is reality. Unfortunately many companies don’t measure accurately how much is being produced per person. The most productive staff people don’t rely on the company to measure their production – they also do it themselves – they take pride in being good at their job. “I answer 200 calls per day”, “I sold the most cars in the company this week”, “I checked over 2000 lines of code this week”. These are all production measures. A top performer will know exactly how much they have produced at any one time.
Your role as an employee is to produce more profit from products you make than it costs to employ you and run the business structure needed by you to create those products. A PA saves the CEO’s time so that the CEO can make more money for the business. A programmer creates viable products that can be sold; marketing creates interest from customers to buy products.
So before you go before your boss asking for a pay rise you need the following data:
1. Your production history
2. The market rate for you skills
Now be careful here with market rates! Online Salary surveys are never accurate. Job adverts in general have a tendency to inflate salary rates to entice applicants – when the letter of offer finally comes out the salary offered it is always based on skill level and rarely the exact advertised rate.
Actively seeking job offers as a way of establishing your current market worth can backfire. It can very easily decrease the trust between your employer and yourself. A safer way is to refer to the salary you started with and your production level over the first 6 months of your role to what you are producing now.
What is the percentage increase in your production? Have you take on extra duties? What have these duties resulted in that benefits the company? Ask your boss for more duties, and then also ask for pay increase to represent the extra responsibilities. Be open to only receiving an increase in salary for extra duties after you have actually shown yourself successfully producing the results from those duties.