With inflation sitting at 5.4%, many Australian workers are finding that their purchasing power is decreasing, despite working harder than ever. While wage growth has shown promise, many are still struggling to see a significant boost to their household income. 

Here are six strategies to help you secure a salary increase this year.

1. Be Willing to Play the Long Game

Negotiating a pay rise often requires patience. Suzie, a 43-year-old IT services professional from Victoria, recently secured a substantial increase in both her base salary and bonus. During her annual review, she was offered a 2.2% raise to her base salary, along with a 25% bonus increase. Rather than rushing to accept, Suzie took her time.

“I didn’t say too much in the first meeting – that was my plan,” she explained. “I then told them I wanted time to consider before signing the document.” Her strategy of waiting and thoroughly evaluating the offer allowed her to negotiate more effectively.

Suzie’s approach is a reminder that negotiations don’t need to happen immediately. Taking time to reflect, gather information, and come back to the table is often more successful.

2. Compile Evidence of Your Achievements

When asking for a pay rise, the focus should be on the value you bring to the company, not personal reasons like mortgage repayments or rising living costs. Come prepared with a detailed record of your achievements and how they’ve contributed to the business’s success.

For Suzie, this approach proved effective. “I returned to my employer with a list of all the things I had achieved that had brought value to the business unit,” she said. By focusing on concrete examples of her contributions, Suzie was able to convince her employer to reassess her worth.

Keeping a log of accomplishments not only strengthens your case but also allows you to negotiate for more than the typical cost-of-living adjustment.

3. Know Your Market Value

Understanding your market value is crucial when negotiating pay. Suzie kept a close eye on platforms like SEEK and LinkedIn to see what similar roles were offering. Occasionally, she even applied for jobs and attended interviews to gauge the salary ranges for her role.

By knowing what others in her field were earning, Suzie was able to stand her ground confidently during negotiations. Researching your market value ensures that your expectations are realistic and helps you argue for a salary that matches industry standards.

4. Keep It Neutral and Pragmatic

Negotiating a pay rise can be emotionally charged, especially in uncertain economic times. However, it’s important to remain neutral and focused on the facts. Practicing what you want to say ahead of time can help keep emotions in check and ensure you stay on track during the discussion.

Fair Work Australia offers a free online course, Difficult Conversations in the Workplace, which provides helpful advice for navigating challenging discussions with your employer. Preparing in advance allows you to maintain a calm and professional demeanor, even when the topic is sensitive.

5. Understand the Impact on Your Take-Home Pay

When negotiating a pay rise, it’s easy to focus on the annual increase without considering how it affects your actual take-home pay. An extra $5,000 might sound impressive, but understanding how much of that translates into your weekly or monthly budget is key.

Using tools like Paycalculator.com.au can help you determine how different salary figures will affect your take-home pay after tax. Being informed about what a pay rise means for your household budget ensures you aim for a realistic and meaningful number during negotiations.

6. Consider Whether It’s Time to Move On

Sometimes, the best way to secure a significant pay increase is to change jobs. According to career coach Tammie Christofis Ballis, “You’ll get a pay rise when you leave your job.” In a recent TikTok video, Ballis explained that leveraging your experience to secure a higher-paying role with a new employer is often more effective than negotiating with your current one.

If your current employer is unwilling to meet your salary expectations, it may be time to explore new opportunities. Learning as much as you can in your current position and using that experience to negotiate a better salary elsewhere could be your best option for career advancement.

Negotiating a pay rise requires a combination of patience, preparation, and knowing your worth. By focusing on your achievements, understanding your market value, and staying pragmatic during discussions, you can improve your chances of securing a meaningful salary increase. If all else fails, consider whether moving to a new job might offer the pay rise and career progression you’re looking for. The key is to stay informed and persistent in your pursuit of fair compensation.