Negotiating Pay Rates

October 2, 2023

Negotiating pay rates can be a daunting task for many employees. If you feel like you deserve more for what you do or want to negotiate your pay or salary before accepting a job offer, there are certain steps you can take to increase your chances of success. 


In this article, we'll explore tips on negotiating pay rates effectively. 


Do Your Research 


Before you start negotiating, you’ll need to get an idea of the current market rates for your role and level of experience level. There are a few ways to find out – such as using this SEEK Salary & Pay Rate Calculator. This will allow you to compare your current rate for your role with the market. 


Know Your Worth 


Once you have an idea of market rates, it's time to assess your own value. Consider your skills, experience, and achievements in your current or previous roles. Be prepared to highlight specific examples of how you've contributed to the company's success including improvement in productivity, innovations, cost savings, efficiencies etc. 


This will help you justify your desired pay rate and show that you are a valuable member of the team. 


Practice Your Pitch 


Negotiating pay rates can be an uncomfortable chat, but being clear in your mind about what you want to say can help you feel more confident and prepared. 


Write down your key points, think about potential objections or questions from your employer, and prepare responses in advance. 


Be Realistic 


While knowing your worth is important, it's also important to be realistic. Consider factors such as your experience level, the company's budget, and the current economic climate. 


If you ask for a pay rate that's significantly above market rates or outside the company's budget, your employer may hesitate to agree. 


Consider Other Benefits 


Your take-home pay is just one aspect, and it’s probably going to be quite an important aspect. But other benefits might be worth considering, such as flexible working hours, additional leave time, or training opportunities. 


These may be easier for your employer to agree to than a higher rate of pay. 


Keep the Conversation Professional 


Discussing pay rates can be met with mixed responses, so it's important to keep the conversation professional and objective. Making demands or ultimatums creates a defensive response, resulting in an unproductive discussion. 


Instead, focus on presenting your case and listening to your employer's perspective. Remember that your employer wants to retain good employees but must also consider existing pay policies, budgets, and sometimes financial constraints. 


Follow Up 


After having your chat with the boss, thank them for listening and considering. Obviously, if they have agreed to a pay increase, regardless of how much you deserved it, or how lucky they are to have you, show gratitude and stay humble – it’s a guaranteed winning approach. 


Finally, if there are agreed-upon next steps, confirm these to ensure you and your boss know what’s happening. 


Talk to Us 


As with most things, having discussions about your remuneration takes practice. But the simple steps that require very little practice are humility, gratitude, professionalism, and simply being polite. In my experience most employers are willing to discuss pay rates, especially when approached with the right attitude. Sometimes there’s an increase, and sometimes there’s a follow-up review for a future time, but rarely is there a flat-out blanket refusal. That only happens if there’s a perceived poor performance or attitude. You know what to do when that happens, right? 


If you’d like to know the answer to that question or want to tap into our knowledge of market rates, feel free to contact us (08) 9477 7999 or send your query to jobs@irp.net.au.


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