How to Negotiate Your Salary and Get the Pay You Deserve

Salary negotiation is a daunting task. But what’s even more daunting is not doing it — especially when your income directly affects how you’re able to cope with the rising cost of living.

In fact, a December 2022 Canstar analysis revealed the average Australian worker earning $92,030 would need an astounding $7,178 increase in annual income just to keep pace with inflation and the future global market. 

Unfortunately, statistics also show many of us are too intimidated to approach the topic of a pay rise with our employers. A survey conducted by employment marketplace SEEK, found 75 per cent of Aussies feel uncomfortable approaching salary negotiations.

But, as we all know, you may not always get what you ask for, but you never get what you don’t ask for. This directly applies to a wage increase because employers are more likely to give raises to those employees who summon up the courage to ask for them. 

So, we asked SEEK’s resident career expert Leah Lambart to provide her best advice on everything you need to know about approaching salary negotiation like a pro and proving your value surpasses your current pay packet.

How to negotiate your salary…

With your current employer

Have you taken on new responsibilities since you were initially hired? Have you been exceeding expectations (as opposed to just meeting them)? Have you been at your job for at least a year? If you confidently answered yes to all three, asking for a raise with your current employer isn’t out of the question.

If your company doesn’t have formal review processes throughout the financial year, you can politely ask your superior when you can expect to evaluate your performance. Once a date and time have been agreed upon and scheduled, it’s time for you to begin preparations for your performance. 

“This should involve documenting what you have achieved during your tenure with the organisation and what value you have brought to your manager, team or the company,” Lambart explained over email. “This could include securing a new client, improving a process to create efficiencies, adding to team culture or demonstrating leadership during a challenging time.”

As part of a job offer

Step one is to plan your approach carefully. 

Lambart highlighted that you never want to accept a verbal offer on the spot if the salary is lower than expected — even if you’re looking at a dream job. Instead, thank the recruiter or hiring manager for their time and offer, and ask them when you should expect to receive the offer in writing so you have time to evaluate the package as a whole. 

“Once you receive this offer in writing, consider all factors: salary and benefits, bonuses, car or laptop allowances, car parking and whether superannuation is included in the package or an addition,” Lamart noted.

Only after you have assessed, examined and digested the information, should you be ready to accept the offer or begin negotiations. 

How much should you negotiate? 

So, what’s a reasonable figure you should be negotiating that doesn’t come off as greedy or unrealistic? To determine an amount, you need to do thorough research and ask yourself the following questions:

• What is the external market rate for your level? (Are people in your role in demand or not?)
• What is the salary of your peers?
• How valuable are you to the business?
• How is the company performing?

A good starting place would be to check out some online resources compiled by recruiting companies like SEEK, Glassdoor or Payscale, which are updated on an annual basis and reflect the current market rate for your role and level. A three to five per cent salary increase seems to be a reasonable average in Australia, however, this will vary depending on an individual’s experience with the organisation and their skill set. 

Lambart also suggested getting in touch with recruiters, particularly those who specialise in a specific field.

“They are recruiting these roles on a daily basis so they will have specific knowledge around salary ranges and other benefits that are being offered by competing organisations,” she said.

Additionally, don’t forget you can also speak with colleagues working in similar roles at different companies. If they’re willing to disclose information on pay, they can significantly help you understand how your salary compares to others who do similar work in the same industry. 

Further into your research, you’ll likely develop an appropriate pay range that represents your market value. At first, you may be more inclined to ask for something in the middle or lower end of the range so as not to come across as greedy, but you should actually strive for a figure towards the top. This is because there’s always a high chance your employer will negotiate down so you do need that wiggle room to still end up with a salary you’re content with. The worst that can happen if you present a high number is that the other party will counteroffer, while the worst that can happen if you set the bar low is that you’ll walk away dissatisfied. 

You should also come up with a “walk away figure” — an offer you simply must turn down because it doesn’t meet your standard. Of course, it won’t be easy walking away, but it’s important to know when to do it — and a powerful skill to be able to know your worth and say “no”. 

7 tips for negotiating your salary

You can follow these seven tips to understand how to professionally ask for a pay rise and increase your chances of success. 

Demonstrate your value

“Set aside some time to log your achievements and milestones, then be prepared to use these as examples of your professional progress,” Lamart said. 

You can prepare this on a single “brag sheet” — a page-long summary that lists all your accomplishments, awards and customer or co-worker testimonials you received since your last review. This should basically summarise just how incredible you are. 

Moreover, you should also list your vulnerabilities and plan to recompense them, should they come up in the review process. For example, if there’s a gap in your work history you’re insecure about, think about all the other amazing things you achieved during that time and prepare to share this with eagerness. 

Always be honest and genuine, and show that you can understand and leverage your strengths while acknowledging and learning from your weaknesses. 

Upskill to remain relevant

Believing you’re worth a specific figure and actually achieving it are two different things — in the end, it’s what the employer will pay for and you’ll need to prove this through a skillset they simply can’t resist. That’s why creased competency in a role is a surefire way to higher pay so invest in broadening your skillset. 

Advancing education with a degree or certification via courses is normally the first strategy that comes to mind when upskilling, but there is a multitude of other ways you can greatly benefit from. For example, attending virtual conferences or networking events, volunteering, finding a mentor, participating in formal feedback sessions, and even just subscribing to industry news and journals to stay informed of trends. 

Upskilling will prove to your boss that you’re committed to keeping up with trends and developments in the industry, demonstrates you have an appetite for learning and shows you’re independent enough to take your professional development into your own hands. 

You also shouldn’t overlook strengthening your soft skills, which include your personality, attitude, manners and motivation. Continuously developing these is just as instrumental in climbing the career ladder and is often the reason employers decide whether to hire, keep or promote an employee. 

Do your research

To get the pay you deserve, it’s crucial you know the going rate for your position in your specific industry and in your geographical area.

“Arm yourself with statistics about the average salary garnered by your position,” Lambart noted. “Look for salary guides with typical pay rates in your industry and do some research into the skills required.” 

The golden rule of timing

Has your company recently undergone recent layoffs or implemented cost-cutting exercises? Will your manager be entering a high-pressure period? Basically, you’ll want to avoid approaching your superiors at any time of heightened stress. 

The end of the financial year could be another good time for asking for a pay rise as employers are likely making hiring and salary plans for the year ahead. 

Make note of these dates on your calendar so you can get a headstart on planning a conversation with your manager. 

Confidence trumps arrogance

The art of salary negotiation is all about collaboration as opposed to conflicts. The second you walk into a room, be polite, grateful and courteous while remaining confident and compelling. 

“Keep your head high and smile when you enter,” Lambart strongly advised.

Giving off a positive vibe will set the tone for what’s to come. “Now you can negotiate with a professional, calm and collaborative demeanour.” 

Remember, it’s a compromise and the main goal is to reach a number both parties have agreed upon.

Understand the difference between requesting and listening

Negotiation is a two-way street, so you must be willing to ask for feedback, Lambart said. 

“While receiving hard-to-hear feedback can spark anxiety, it’s an important part of the negotiation process. In the case your request is denied, your manager has the right to explain why and what you need to work on to obtain a higher salary.”

Know when the negotiations are over 

Once your employer agrees or disagrees with your requests, the negotiation is complete.

“Don’t appear greedy or ungrateful by going back again and demanding more,” Lambart urged. And most definitely skip threatening with a ‘take-it-or-leave-it’ stance. 

Regardless of the conversation, end by thanking your manager for their time. If your manager needs to consult someone else about your raise, you can send a follow-up email the next day that recaps your reasons for asking for the raise. This will make it easier for them to have a conversation on your behalf. 

What should you do if your salary negotiation request is denied?

So your request for a pay rise is denied. What do you do? 

Well, your determination to achieve a salary increase doesn’t stop after your manager delivers less-than-desirable – albeit constructive – feedback. 

“Following your meeting, always work to ensure that you stand out from the pack — a campaign for a pay rise needs to be a year-round undertaking with consistent check-ins and communication,” Lambart explained.

“Don’t let the first failure deter you and ensure you continue to push for what you want, without overstepping boundaries.” 

An unsuccessful pay rise request can simply be because your manager’s cash-dispensing hands are tied and the organisation isn’t currently financially able to pay the salary you desire. In this case, come prepared with well-considered low-cash or no-cash alternatives, as this will increase your chances of walking away from the discussion with some sort of positive outcome. Examples include more holidays, greater flexible working hours, mentoring sessions, a performance bonus when agreed-upon milestones are hit, an upgraded job title, travel expenses or health and wellbeing access like a gym membership. 

Receiving a “no” is a part of the salary negotiation process — not a reflection on how you’re doing or your value so don’t lose hope. Continue investing in your professional and personal development and good things are sure to come your way.