A recent Finder report has revealed compelling insights about salary negotiations among Australians. It shows that around 20% of Australians, equivalent to about 2.8 million individuals, asked for a pay rise in the previous year. Remarkably, four out of five of those who made such requests succeeded in securing an increase.
On average, employees who asked for a raise received an annual increase of $3,380. However, the report highlighted a concerning gender pay gap: men received an average pay rise of $3,990, while women averaged only $2,424. Additionally, men were more likely to initiate these pay discussions.
Sarah Megginson, the report’s author and a personal finance expert, emphasised that the high success rate of those who requested a raise should encourage more Australians to approach their employers. However, she expressed concern over the apparent disparity in the pay rises granted to men and women, noting that women not only received lower increases but were also less likely to ask for a raise.
Megginson advised employees to approach their salaries proactively and extended the notion of “don’t ask, don’t get” to other financial areas, such as insurance and savings accounts.
For those considering asking for a pay rise, Finder suggests several preparatory steps. Firstly, it’s essential to conduct research to understand market salary benchmarks according to your industry and experience. Next, compile a list of achievements and additional responsibilities to demonstrate your value to the company. Timing is also crucial; ideally, requests should follow significant project completions or coincide with performance reviews. Lastly, employees should have a backup plan in case a salary increase is not feasible, such as negotiating for extra leave or performance-based bonuses.
Overall, the report serves as a powerful reminder that advocating for oneself in the workplace can lead to favourable outcomes, while also calling attention to the ongoing issue of gender disparity in salary negotiations.