Getting a pay rise in a recession

Susan Doughty. Photo / Supplied

Don't expect salary increases in the coming year, says Jason Walker, managing director of Hays in New Zealand.

The latest Hays Salary Survey shows 73 per cent of employers intend increasing salaries by less than 3 per cent over the next 12 months.

A quarter of employees will get increases between 3 and 6 per cent, and only 2 per cent can expect any more.

However, Susan Doughty, director of remuneration specialists dsd Consulting, says those who've taken on increased responsibilities or have proved their value may have a case for a pay review.

"Many employers are still focused on making sure top staff are well recognised and rewarded. These are the very people who will ensure the success of the company over the longer term," Doughty says.

If you want a bigger piece of the pie, Doughty advises:

* Prove your worth.

Demonstrate your achievements in the past year and the extra responsibilities you've taken on.

* Present the facts.

Be objective and think about your request from your boss' point of view, justifying it based on the financial benefits you have brought to the company or how you've helped increase efficiency.

* Do your homework.

How you value yourself and how your employer values your job are quite different. Most companies set salary levels based on their internal policy and what the labour market dictates.

Research the value of your role against other comparable roles in the market by visiting websites like Seek or Trade Me.

Avoid comparing yourself to others doing the same job or your friend in another company. What they earn is irrelevant - it's your individual performance and the value and experience you bring that will matter to your manager.

* Provide creative solutions.

Being open-minded to alternative rewards may be the answer - things like flexible work hours, working from home, and additional annual leave can be worth more than a pay increase.

Importantly, says Jo Harrison of Kerridge and Partners recruitment, even if you don't get your rise, if you've acted professionally and without emotion, you'll gain your manager's respect.