 |
The Association of Professional Engineers, Scientists & Managers, Australia  |
Home | Membership | About | Member Services | News/Views | Members only | Advice Online | Careers | Surveys | Contact | Search | Links | APESMA Connect
 |
| Professions/Divisions | Women's Network | Young Professionals | Students | ETM Placements | Chifley Business School | Member Advantage Services
|
| ADVICE ONLINE |  |
| Salary / Performance Reviews |  |
How do I justify a salary increase?
There are four grounds on which to justify a salary increase. They are:
The first two are substantive reasons while the last two can support, but alone will not justify, an increase in today's productivity orientated world.
Individual performance is increasingly the most important justification factor.
Many organisations have formal appraisal systems which seek to determine how well someone is performing. These are notoriously subjective and it is just as critical knowing how the system works and getting on well with your boss or supervisor as it is performing well.
It is important though to make sure your achievements and contributions are noted and not glossed over or forgotten. One way to do this is to keep a diary and note your achievements or positive contributions for reference in your salary review. This is probably more important for graduates, as is noting new skills or new areas of experience.
Increasingly the move toward team based work means taking the credit, and the rewards, as a team. Team-based reward systems are more objective than individual assessment and have less of a personal factor.
Organisational performance continues to be the most important factor in determining whether employees get an increase. Simply put, profits and commercial viability mean there is the money to pay for the increase.
You must keep yourself up to date with the salaries in your field and in your industry. It is critical that you keep abreast of market conditions. The APESMA salary surveys are an important source of market information. You should also, through networking, keep up to date with what is being paid in your local area or your part of the industry.
Some people, particularly graduates, sit in a job where they are unhappy with the salary and do not actively seek a new job or a salary increase. Employees in this situation must be pro-active.
More and more, increasing hours and working intensity is the order of the day. It is a great source of dissatisfaction with salaries particularly when professionals see waged employees earning as much, if not more, through overtime.
While the real, long-term solution to excessive hours or extreme work intensity should be additional staff and assistance, if this is not forthcoming then a salary increase or an overtime allowance should be sought.
Often the argument from employers is the extra hours are only temporary. The response is to ask for a "commuted overtime allowances" which is a fixed percentage of salary paid for over the "period" the excessive hours are required to be worked.
If the excessive hours are a permanent feature then there may be a component of base salary already paid for overtime. A comparison of the hours expected in equivalent jobs with similar salaries will establish this. The Association's salary survey and your network will likely have the information you need.
How do I prepare for a salary review?
The key to any salary review is prior preparation. Where possible it is best to draw up a salary proposal detailing what you are seeking and the justifications for your increase.
If written salary proposals are not the norm in your organisation, it would be an idea, before your salary review, to signal to your manager that you will be putting a "few ideas" down on paper. In this way your manager may not feel so overwhelmed and underprepared when you attend the meeting fully prepared.
Preparation should involve collecting information during the year. An effective way of doing this is by maintaining a brief journal of projects completed throughout the year and noting their worth and importance to the organisation and your input into their success. If you have been taking on new levels of responsibility these should also be noted.
An important preparation for your salary review is to regularly seek comments on your performance from your supervisor/manager. This is important for two reasons. If there are any concerns these will be highlighted to you in time for your to remedy. Secondly by seeking feedback you will usually receive positive comments which means for your salary review you will have already established a positive environment.
Probably the most important preparation is researching market salaries and changes, and finding benchmark positions and salaries.
The APESMA salary surveys are your best source of market information. It is also worthwhile talking to an APESMA Industrial Officer and asking for their advice and assistance.
The structure of your salary review should be precise and to the point. Your request should be clearly set out stating what you are seeking and on what grounds (see below for the format.). Long-winded requests for more money are nearly always consigned to the permanently "pending" tray. It may even be suggested to you that you have too much time on your hands if your request is overly long. A salary request should be no longer than 2-3 pages, not including any supporting evidence such as excerpts from the APESMA survey.
It is also important to maintain a positive tone throughout. There should never be any undertones of threat or dissatisfaction. If you are considering leaving for another job if you do not receive a certain salary increase state this verbally and in confidence. Also do not make it a threat. Any salary request should conclude with the emphasis on the positive aspects of your performance and your commitment to the company in the future (even if you are thinking of leaving).
Outline of salary increase request
Introduction - outline of the main reasons/arguments and the increase you are seeking i.e. 3-5%
Justifications - individual/team performance, organisational performance, market comparisons, increase in responsibility/work intensity, inflation
Conclusion - emphasise your strong performance over the last period and your commitment to the organisation in the future.
 |
| Home | Contacts | Privacy | Copyright | Disclaimer | Feedback | Sitemap Copyright © 1996 – 2010 The Association of Professional Engineers, Scientists and Managers, Australia ABN 99 589 872 974. All rights reserved. |
 |