Before You Negotiate A Pay Rise…

The Gender Pay Gap for Australian women is irrefutable. But what is it for individual women? How does any employee understand what they should be paid? In truth, most people don’t know how to evaluate their worth objectively, which leaves them to negotiate (or not) based on what they feel they are worth.

The Gender Pay Gap is currently 18.8% in Australia. The implications are as complex as the contributing factors. One of those implications is that as women, when we don’t know our market value we can assume that we’re being underpaid. Sure it’s statistically possible: but without credible evidence it becomes very personal. You risk feeling undervalued and disengaged and your employer risks feeling bullied.

‘One confronting challenge in determining your salary is that it’s more about what the job is worth than it is about what you’re worth.’

And?

Well if money is very important to you, you should target industries and roles that pay handsomely. If you’re moving from financial services to aged care for instance, you should expect a dip in pay.

KNOW WHAT THE MARKET IS PAYING

This one is the most obvious. You could speak with a niche recruiter. Be sure it’s someone who knows their market well, rather than a ‘flick and stick’ transient recruiter who covers all roles and all industries. An experienced niche recruiter will be able to share insight into the salary range you can expect for your job type. This is generally going to be industry specific and affected by location.

The implied advice here is to nurture your relationships with good recruiters!

Recognise that there should be a win-win: you may need them to recruit for you or find your next role and they can provide you with excellent market intelligence.

recruiters

If you don’t know the credible recruiters in your market, find them. It’s an investment. Like a shortcut? Consult the Hays Salary Survey. The beauty of this annual document is that it’s divided by industry, by level of role and by location.

You’re not looking for an absolute dollar figure here, you’re looking for a salary range. If you’re being paid above the range, consider whether your job title could do with adjustment.

Some time on Google will fairly quickly uncover job descriptions for any role. Feed this information back into your salary enquiries.

KNOW WHERE YOUR SKILLS SIT WITHIN THE MARKET

Recruiters can help with this too, but you’ll need to be able to articulate what you do for them to translate that to a market value.

Recognise the difference between responsibilities and achievements. Achievements are generally things that you did that sit above and beyond the normal expectations of your role. Perhaps you’re responsible for executing a certain task but you additionally created processes that wiped 3 days per month from that task. You can calculate the dollar value of your initiative there.

Or perhaps you overachieved your KPIs by 15% … quantify it. Quantifying your achievements is the factor that helps to determine whether you are an average performer or above average. If you can demonstrate that your performance adds value above organisational expectations, then you’re in a good position to convince that your skills sit at the top end of the market’s salary range.

Performance appraisals have a good deal of benefit for you, right? For many they’re the only time (outside of job transition) that they reflect on what they’re achieved. It’s an excellent opportunity to take stock of what you’ve achieved and to make it known.

ARE YOU EASLIY REPLACEABLE?

Are there lots of you or are your skills in high demand?

If a couple of major competitors have recently moved operations off-shore leaving dozens of highly active job seekers with your skills, you’ll have to work harder to prove you deserve a pay rise.

If the four closest competitors are actively making you job offers on a weekly basis because there are so few people with your skills: clearly you’re in a good position to negotiate.

NOT ALL NEGOTIATORS ARE EQUAL

Not all highly competent people are recognised as highly competent. Not all highly regarded employees are competent!

For sustained credibility across roles, it’s essential that you have the magical mix of competence and the ability to be heard. It’s the 2-part success formula of Executive Presence.

Executive Presence

Be really good at your job and gather evidence as you go. Gather skills along the way in communication, confidence and people management that you can apply to peers, influencers and leaders within the business. ‘Managing Up’ is as critical as managing your team.

These are all skills that are essential for effective leadership: the sooner in your career you can get them working for you, the greater your career trajectory will be.

IT’S NOT PERSONAL

I’ve heard a LOT of employees say that they’re underpaid, that they do more hours than is reasonable and deserve to be rewarded for it. Long hours is a generally a separate issue to your salary. Let’s assume here that the long hours are not related to poor productivity or a lack of training in particular skills.

If your hours are long and that doesn’t suit you, you should negotiate workload or delegation options.

“I can see how XXX is an important priority. Let me walk you through the other responsibilities I’m carrying right now and you can tell me which is less important. Alternatively, if they’re equally important we can discuss resourcing.”

Alternatively, decide that you’re prepared to do it for a defined period of time. Be vocal and get agreement on that definition.

Perhaps you’re seeking a pay rise as a reward for a hard slog on a particular project. Remember that your salary will reflect what your job is worth, so if you’re taking on a project that is going to demand a higher level of responsibility and extra hours for a period of time, you should negotiate upfront. Agree to KPIs and expectations and get written agreement on the reward for effort and/or outcomes.

EXUDING OBJECTIVITY

We’ve talked about how to find the data, but how do you clear the emotion from what can feel like a very personal conversation? The most reliable solution is to go outside yourself: speak with a mentor or coach. Being prepared with data is incredibly helpful.

Be clear about your expectations and don’t bring personal circumstances into the conversation. This is not the time to mention the favoured holiday destination or kid’s school fees!

“The industry norm for this role is between C and G. I’m being paid D, which is at the bottom end of that range, however my performance reviews, KPIs and customer reviews confirm that my performance is much closer to the top end of that range. I would like you to review my salary.

What information can I provide you to make that easier? What timeframe should I expect for your decision?”

GETTING THE UPPER HAND IN SALARY NEGOTIATIONS

  1. Take stock. Many people don’t reflect on their achievements until they need to change jobs and are subject to situational insecurity.
  2. Know what your skills are worth in the market.
  3. Know how critical your role is to the organisation.
  4. Get your timing right (don’t approach a negotiation the day before a major product launch or catastrophe when all eyes are focused elsewhere)
  5. Be objective. There should be no “I feel I deserve…” involved.
  6. Be confident. Our earlier blog with tips from The Confidence Coach Lisa Phillips can be helpful
  7. Be good at what you do! And be able to talk about it. Nobody will be as aware of your capabilities as you are- they have their eyes on their own stuff.
  8. No business will pay you more than they have to. You’re an employee not a charity recipient. If you want to be paid more money, you need to be able to justify it.

THE RISK OF NOT KNOWING

Particularly for women when gender pay inequity is so prevalent in the media, it can be a quick assumption that our individual circumstances warrant a better deal.

I would encourage you to NOT assume. Instead, be empowered to uncover the facts for your circumstances. Gather your evidence and find a mentor or coach who will give you an objective ear, not just agree with you!

If it turns out you are being paid less than the market for your level of skill in the role you’re doing, be smart about putting your case forward. Be prepared and be confident.

Know how important it is it you. Be prepared for a ‘No’: there may be other circumstances going on that you’re not aware of. If your negotiation is met with a no, what’s your Plan B?

Having an alternative will be empowering and will help remove some of the emotion from your negotiations.

Cath Nolan, CEO and Founder of Gender Gap Gone, is an Executive Coach and Key Note Speaker with background in organisational and individual development. With a team of associates Cath launched Gender Gap Gone, enabling organisations to ensure that their diversity goals are translated to a lived reality for all employees and that more women enter and rise through the Leadership Pipeline. With a business model designed to fit around competing priorities, Gender Gap Gone helps more women into the roles of their choosing. Subscribe for  the latest free resources and upcoming Programs, or follow us on Twitter Instagram or Facebook and be inspired to keep your career on your work-day radar.

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