No idea how to ask for a pay rise? We asked an expert exactly what to say and do

As cost-of-living pressures continue to hit Kiwis, pay is at the top of our minds - especially with many of us looking to increase our paychecks.

New research from SEEK has given us new insight on which New Zealanders are the most likely to ask for a salary increase, how they’re getting them and which industries are agreeing to putting more cash in employees' pockets.

Out of the more than 1,000 Kiwis asked about pay rise expectations, a whopping 83% said they are expecting to receive an increase within the next year, despite only 50% of them receiving one in the last 12 months.

If you're someone who is feeling underpaid, but not sure how to navigate the conversation about pay, you're not alone.

How to ask for a pay rise

Asking for a pay rise is always easier said than done. Many of us have probably spent time in the shower or while nodding off to sleep, playing out hypothetical conversations in our heads, but never actually finding the courage to initiate them when it comes down to it.

But the survey shows the 41% of workers who asked for a pay rise were successful.

We asked Seek Career Coach, Leah Lambert for the best ways to prepare and approach your employer, and she's got some great advice to get you going after what you want.

“Asking for a pay rise can feel daunting, so preparation is key,” Lambert says. “When having the salary conversation, employees should focus on clearly articulating their value, backing it up with results, and keeping the discussion open and constructive.”

"The first step I would recommend is to do your research to get a realistic understanding of how your salary compares to others doing the same role in a similar market."

She suggests using SEEK Career Advice or annual salary guides which provide up-to-date salary information for different roles across different locations.

"If you believe that based on your years of experience and skill level, you deserve to be paid at a higher rate, then I would flag with your manager that you would like to have a conversation to understand how salaries are calculated within your organisation."

Though, she says, "This can vary greatly and can be quite complex, with salaries often determined based on company, team and individual performance.

Before meeting with your manager, Lambert recommends documenting your achievements over the last 12 months, to show you've added value.

This may include:

• Additional projects you've managed or contributed to

• Key relationships you've successfully managed that led to business outcomes

• Additional responsibilities you've taken on

• Internal processes you have improved - creating efficiencies or reducing costs etc.

"Not all achievements can be quantified by a dollar amount or percentage, so think about how you have contributed in other ways," Lambert adds.

"When documenting your examples, I recommend using the CAR method - what was the CHALLENGE, what ACTIONS did you take to overcome this and what was the RESULT. This will help you provide evidence of how you have supported the organisation and the value you have brought."

She adds: ”If a pay increase isn’t possible right now, it’s worth exploring other forms of recognition such as flexible working arrangements, additional leave, training and development opportunities, or agreeing on clear goals and a timeframe to revisit the conversation later.”

Are Kiwis happy with their current salary?

If you want the short answer… Nah, we’re not.

Less than half of New Zealanders - around 41% - say they are happy with their current salary. But despite how unsatisfied we are, most of us still aren’t speaking up about it.

Two-thirds of workers don’t feel confident asking for a pay rise, with one-third not comfortable initiating the conversation, and nearly half (46%) have never asked for one.

Is it smarter to leave a job to seek better pay?

For most Kiwis, their most recent pay rises have come from staying put rather than switching jobs.

In the last 12 months, 90% of the pay rises reported in the survey came from staying in their current place of work, with 76% in the same role. Just 14% of the pay rises came from promotions or role changes.

A lot of those increases were company-wide (e.g. inflation adjustments), rather than individual negotiations - so there’s still a huge gap when it comes to us initiating those conversations.

But while most pay rises came from staying put, those who did switch jobs were three times more likely to score a pay rise of 10% or more. Those who stayed earned an increase of 5% or less.

Top ways NZ workers received a pay rise in the last 12 months:

• A pay increase in my current role at my current company - 76%

• A company-wide pay increase (e.g. annual inflation) - 52%

•  A performance-based pay increase - 24% 

• An individual pay adjustment (e.g. benchmarking, tenure-based) - 16%

• Promotion at current company - 7%

• Role change at current company - 6%

•  Moved to a different company - 5%

• Moved to a different industry - 1%

• A retention or counter-offer - 1%

The NZ industries most likely to get a pay rise in the past 12 months:

• Industrial (57%)

• Professional services (53%) 

• Technology (52%)

Should you ask for a pay rise?

It never hurts, right? But you’ve got to make sure you’ve got the confidence to back it up.

And there’s a clear difference between the generations who back themselves.

Most likely to have requested a pay rise: 

• Millennials - 60%

• Gen X - 53%

• Gen Z - 43%

Comfort levels when asking for a pay rise:

• Gen X - 37%

• Millennials - 29%

• Gen Z - 29%

Note: Baby Boomers were not included due to the low number in responses.

Getting a pay rise is always the goal, but just starting the conversation is worth it - even if you don’t see immediate results.

So, back yourself, gather what you need and finally ask for that increase!