Hi lovely,
It's Lata Hamilton,
Change Leadership and Confidence Expert and I wanted to share my thoughts on whether it's worth asking for a pay rise in 2024.
Every year it feels like I write an is it worth blog post which started at the height of COVID when so many plans flew out the window.
There was the is it worth setting goals in 2021 blog post from 2021 then the is it worth setting goals in 2022 again blog post and to save you the time the answer is yes it's always worth setting goals.
But times have changed and the craziness of COVID has eased and a different challenge is now rearing its head,
The economy.
Now I'm not a doom and gloom kind of person and I don't wax lyrical about the state of the economy and the cost of living crisis but I also don't ignore it.
I simply look practically and realistically at it and then go ahead and continue on my goals and my path.
Many companies are reducing spend,
Cutting headcount and pausing pay rises so does that mean that you shouldn't even bother asking?
Yes and no.
I firmly believe that it's always worth asking for a pay rise even if the chances of actually being granted the pay rise at this time are low and here's why.
Your career is not a hobby.
We spend 1760 hours a year at work that's 220 days over 44 weeks and there's only 52 weeks in a year and this is only if you take out holidays and sick leave and weekends which some of us don't.
Your career is not a hobby,
You go to work to get paid.
If you don't get paid it's volunteering and pay isn't created equal.
You want a fair and equitable wage rather than being overworked and underpaid.
The gender pay gap means that you're likely already behind.
Many women are not being compensated fairly for the work that they do,
The effort they put in,
The results they get and the relationships they build.
With the gender pay gap you're likely already being paid less than your male counterparts.
That pay gap is sitting in someone else's bank account but it's not yours.
So even asking for a pay rise might only be bringing you up to what you should already be earning.
If your salary doesn't go up your company is,
In inverted commas,
Stealing from you.
You get pay rises because every year your skills and experience are deepening and your value to your company is expanding.
I controversially believe that if your salary only goes up by an average one to three percent you actually aren't getting a pay rise.
Because your pay is going up with the cost of living,
The extra money you make only buys the same amount.
And if you don't get a pay rise at all,
Not even one to three percent,
Well perhaps we could even say your company is stealing from you because you're getting the same money but it buys less.
With cost of living so rapidly increasing your company is likely increasing the cost of its goods and services,
Although it may be selling less of them.
So what happens when inflation stops and interest rates settle,
Which we know will happen,
Those prices will stay the same at their new high normal.
But your pay hasn't gone up at all over that time.
Any chance you get to ask for a pay rise,
Such as a new year milestone,
Take it.
They may still say no and cite the current economic landscape but at least you've asked.
It tells your bosses that you know you're worth more.
Even if you don't get the pay rise it at least indicates your intention that when pay rises are back on the table you expect to be amongst the first to receive one.
But saying all this there may still not be a point in asking.
The sad truth is that the likelihood of getting a significant pay rise in your current company is low.
Your company has been paying you for several months or even years to deliver a certain level of quality.
They are used to you being worth that amount but the open market isn't.
When I moved from one marketing role in a consumer goods company to another marketing role in a bank I got a $20,
000 pay rise.
Why?
Because I recalibrated what I was worth against the open market.
I changed to a higher paying industry,
Moved to a fixed term contract with bonus and contingency built in rather than discretionary and I simply got paid more.
It was the same me but in a new place and a new space I was worth more.
If I'd stayed in consumer goods the real raw cost of staying stuck was $20,
000.
And when I moved from permanent to day rate contracting and change management the real raw cost of staying stuck was $100,
000.
Remember this is broader than just you.
The gender pay gap is real across the world and it's not until women like us decide that we are worth more and go get that higher income that we can start to pave the way for other women and shift the global paradigm of being underpaid and overlooked.
So rather than ask for a pay rise you might prefer to simply hold your cards close and start actively looking and being open to new roles outside your company.
You're already in a role so there's no stress or pressure to find a new one.
But a new position in a new company could be so much more lucrative without having to go through the stress and struggle of asking for a pay rise.
So will you be asking for a pay rise in 2024?
Pop a comment below and let me know.
