Whether you’re entitled to a pay rise or not has been a hot topic recently. The Bank of England’s chief economist Huw Pill recently told a US podcast that people should “accept that they’re worse off” and not ask for salary increases, in order to stop continued price rises.
“Somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether through higher wages or passing energy costs on to customers etc.,” he told Columbia Law School’s Beyond Unprecedented podcast.
The comments unsurprisingly received backlash, particularly amid the cost of living crisis and ongoing strike action from essential workers such as doctors and teachers.
So… is it fair to ask for a pay rise in 2023?
“Last year, jobseekers and candidates demanded inflated salaries because they felt they could,” says Tiger Recruitment MD Rebecca Siciliano. “Businesses were struggling to attract and retain talent, and they knew they were in a strong position to negotiate. Times have changed, however. The employment market has balanced out – there are fewer job openings and more quality candidates – and employers are less able to afford to increase salaries. However, sometimes people merit a pay rise and are justified in broaching the subject with their boss.”
Ask yourself the following questions to see if you meet one of the main criteria for a raise…
Have I taken on extra responsibilities?
“If you’ve taken on extra duties since your last pay review or your workload has significantly increased, you’re justified in asking for a salary rise,” says Rebecca. “It stands to reason that if your employer requires more of you, they should reward your efforts. Dig out your job description and list how it has been added to or changed.”
Am I contributing to the company’s success?
“Has one of your ideas helped the business save money, improved efficiencies, or increased revenue? Have you won new clients – or made a tangible contribution to your employer’s success in some other way? If yes, you have a compelling case for more money. To improve your chances of success, gather evidence of what you did and any positive feedback you received, and quantify it with data where possible. For instance: ‘in the past six months, I’ve brought in three new clients, generating £X in annual revenue’.”
Am I being underpaid, and can I prove it?
“If you know you’re being paid below the market rate, you’ve every right to ask for a raise,” says Rebecca. “But do your homework first. Research the typical salary range for your role and seniority using PayScale or Glassdoor, speak to a recruitment expert, or consult independent salary and benefits benchmarking reports to see what other people in your industry and region with your experience earn.”
Do I consistently go above and beyond?
“If you’re a star performer who consistently meets or exceeds your KPIs, you could be entitled to a raise. The key is to gather information on your accomplishments and any positive feedback you’ve had. The notes and goals from your last performance review are a great place to start.”
Have I gained new skills that help me do my job better?
“If you’ve achieved a new qualification or acquired a new skill that increases your worth to the company, you could be in line for a salary increase,” adds Rebecca. “Perhaps you’ve completed a course, such as in design or podcasting, and can now pick up tasks the company once outsourced, saving them money.”