Wage Factors and Salary Hikes

Are you a valued employee who deserves a salary hike? Here are some factors to think about your employer before demanding more pay.

Consider:

• How well paid you are at the moment compared to the market trends.
• Where you live and work and the costs of living associated with the area, and in relation to other geographical locations where the company employs people.
• The company’s position concerning staff turn-over, retention, recruitment and head-count (i.e. increasing, reducing, or static; in accordance with planned levels or not).
• The company’s trading performance (relative to budgeted costs and planned sales and profitability).
• The available budget your company has for pay raises (which is usually none, apart from annual salary review time).
• The company’s last company-wide salary review, and the range of percent increases awarded (e.g. to the union).
• The company’s next company-wide salary review and the likely range of percent increases.
• What precedents would be set for other employees by giving you a rise (this is often a significant issue for the company).
• How valued you are to your boss and company.

• How easy it would be for them to replace you with someone of similar capability and value at the same or less salary.

• How much extra responsibility and/or you are prepared to take on.

• How much extra effort you are prepared to put into the job and how ambitious you are.