One in three firms plan to up salaries in 2024: Here’s how to ask for a pay rise

Now could be a good time to ask for a pay rise, as new data reveals that one in three businesses are planning to raise salaries and bonuses in 2024.

Firms are keener than ever to keep hold of workers, and stop them from being tempted away by a better offer elsewhere. 

In a survey by jobs website Totaljobs, 29 per cent of firms said staff retention was their top focus for the new year, overtaking the need to fill vacancies. 

To keep them happy, almost half of the 1,000 human resources staff surveyed said that they would review pay and benefits, as well as training and opportunities for flexible working.

Don’t go! Data reveals that a third of businesses view staff retention as a top priority for 2024

Securing a pay increase has also taken the top spot in the minds of employees, with 29 per cent responding that finding a better-paying job was the most likely reason they would resign. 

Julius Probst, European labour market economist at Totaljobs, told This is Money: ‘Workers are continuing to demand pay increases in line with inflation, so prioritising wage reviews is crucial for businesses looking to successfully retain talent and keep employees engaged.’

While your employer may be willing to hand out pay rises, they will often only go to those brave enough to ask. 

We spoke to careers experts to get six top tips for securing a pay rise this year.

1. Get the timing right

If your employer doesn’t have an annual review process, finding the right time to ask for a raise can be tricky. 

An obvious time to ask for a pay rise is when you are in line for a promotion or have recently been given more responsibility.

However, the time of year can also play a part, according to career expert and author James Innes – also known as The Jobs Guru. 

Top time: Jobs expert James Innes says now is a good time of year to approach your boss about a pay rise

‘Right now is actually one of the best times, with Christmas and new year out of the way,’ he says. 

‘The end of the financial year for many companies is approaching, and therefore budgets are being established for the year ahead.’

Otherwise, Innes recommends the anniversary of your start date, which would usually be the time of a traditional performance review. 

‘September is also a good time, after the holidays and ahead of the Christmas period,’ he says. 

However, it is also worth considering whether your employer is facing financial difficulties, or your boss is under more stress than usual, as these might make your request less likely to be granted.

2. Know what you are worth 

Before asking for a meeting to discuss a pay rise, you need to work out how much money you should ask for.

Tessa Hollingworth, managing director in the North West for recruiter Hays, suggests finding out what people in your job are typically paid – not just in your company, but across your industry. 

Both Hays and Totaljobs have salary checker tools to help you do this. 

‘If you find that the industry wage for your role is lower than your current pay, then you are within your right to bring this sort of information with you when you have a discussion with your manager,’ says Hollingworth. ‘However, be aware that they aren’t obliged to then match it.’

Even when entering negotiations with data at hand to support your case, you should be ready for your employer to try and meet you in the middle.

Face up to it: Experts say pay negotiations shouldn’t be done over email. If you work from home, they suggest you should at least schedule a video call 

Innes takes a slightly different approach, and says you should be careful about spelling out the salary you want to receive. 

That could be good advice if your boss has a higher figure in mind than what you were expecting. 

Innes suggests tabling a face to face meeting with your boss, and entering into a negotiation. 

‘This will give both you and your employer the opportunity to enter into a two-way dialogue, lay all your cards on the table and, with a bit of luck, reach a solution you are both happy with,’ he says. 

3. Don’t do it in an email  

Requesting a meeting may seem obvious, but the temptation to make the request in an email could be too great to ignore – especially if you work from home.

Totaljobs gives this advice: ‘Whether working from home or in the office, make sure it’s a face-to-face request as this is harder to turn down than one made on messenger or email. 

‘Get in touch with your direct line manager, as going above them will play out badly politically in the vast majority of cases. 

‘The type of relationship you have with your boss will help decide how you ask for a pay rise. 

‘Raising the subject informally may prove to be more successful for some, and can be the start of you building a case with more senior stakeholders – but other managers will prefer a formal approach.’

4. Prove that you are worth it

An employer is unlikely to grant a request for a pay increase just because you have asked for one. 

Instead, the responsibility is on you to prove to them that you your contribution to the company goes above their expectations.

Innes suggests thinking about what progress you have made in your role and what value you have added that makes you deserving of a higher salary.

Entering negotiations with examples of your development in the role to back up your request will make your case all the more compelling.

Spell it out: Bosses will be looking for tangible evidence of what you have achieved in the job

Hollingworth says you should prepare a business case. ‘This needs to be focused on demonstrating, with evidence, how much of an asset you are to the business,’ she says.

‘Consider the value you bring to your employer. If you have taken on additional responsibilities and made crucial savings, then you already have some solid evidence to present. Be specific and provide tangible evidence.’

Totaljobs’ advice is to put yourself in your boss’s shoes. 

‘Any decision they make will be a balance between their bottom line and the value you bring, so make sure you come with a comprehensive overview of what you’ve achieved over the last year, and what you expect to bring in the months or years to come.’ 

5. Be diplomatic 

Going into a negotiation with your boss, it is key to be ready to compromise in order to reach an agreement that both sides are happy with.  

The failure to be ready to compromise could land your with bigger problems than just a low salary – so for Innes, a diplomatic approach is essential.

‘I’m not just talking about your chances of successfully negotiating the pay rise, I’m also – and perhaps more importantly – talking about the relationship you have with your current employer,’ he says. 

‘If you get it right, then it’s not going to guarantee you a pay rise – but it will at least minimise the chances of your damaging your relationship with your employer in any way.’

If your employer cannot raise your salary, or can’t meet the figure you are asking for, they may offer you alternatives such as more holiday pay, more convenient hours, or targets to meet over a set period with a view to a future pay rise.

6. Don’t threaten to leave 

Along with being ready to compromise, it is essential not to enter negotiations too aggressively.

When asking for a pay rise, it might be tempting to let your employer know that you are looking at other jobs, or even to threaten that you will go elsewhere if you don’t get the pay rise you are asking for.

Innes says: ‘Many employees – rather ill-advisedly – believe it to be a good negotiating tactic to threaten that they might be ‘forced’ to look for another job if their request isn’t accepted.

‘Such threats might be made very directly or they might just be subtly implied. But my advice is to make sure that you don’t make any threat of any sort.’

If your employer doesn’t give in to your threat, you may see your relations permanently damaged, and even if you are intent of finding another job elsewhere, you may be forced to face your frosty relationship with your boss in the meantime.