The traditional way that companies in the UK used to work was this: you would expect to see your salary increase both annually as part of their normal processes (so every 12 months) and whenever you got promoted into a new role. The annual increase would be based more or less on inflation, provided the company was doing well enough to afford it.
In 2023, though, things look very different. Yes, there are still plenty of companies that work more or less like this. But there are as many, if not more, who take a very different approach. This is especially true for roles and industries where there is a lot of competition for talent.
It isn’t unusual now to see companies raising salaries several times a year just to keep up with soaring inflation and living costs. Talented employees no longer need to wait for a promotion to get a significant ad-hoc pay rise. They just need to have the right attitude and a skillset that is worth more to the wider market than they are currently being paid.
Contents:
- Is it normal to get a pay rise every year?
- When should I ask for a pay rise?
- What is the average pay rise in the UK in 2023?
- How to ask for a pay rise
Get the book – Because I’m Worth It: How to Ask for a Pay Rise
Is it normal to get a pay rise every year?
It’s certainly normal to expect a pay rise every year, but there are lots of companies in the UK that don’t work like this. If you work for a large firm then it is more likely that you will see your salary increase every year.
There are two reasons for this:
1/ Larger companies are by their nature better funded and better able to find ways of covering the increase to their wages bill, even if they aren’t making a profit.
2/ Larger companies tend to have clearly defined, rigid processes in place for things like their accounts systems. An annual pay rise can be more easily managed and factored in than doing things on an ad-hoc basis.
The majority of us work for much smaller companies, though, and their processes are more likely to reflect the mindset of the owner of the company, and how they see their staff. There is no law that says you have to receive a pay increase every year, so if you are unsure of what happens in your company the best thing you can do is simply ask your colleagues.
When should I ask for a pay rise?
As a rule of thumb, you should be comfortable asking for a pay rise whenever the market rate for your services has increased. Could you leave your employer and get paid more by joining a rival firm whilst doing exactly the same role? If you are confident you could, and that it is a fair comparison, then it might be time to ask for a raise.
Once you have done your salary research, you need to pick a good time to ask. At the very least you want to make sure the company is financially stable and that you are currently getting on well with your manager. To add even more weight to your timing, any one of these events will help your cause:
1.When you have taken on some new responsibility
If you are going to take on more responsibility then you should be compensated for it. Otherwise, why would you do it? Be positive about wanting to progress, and stress that you think it is only fair and realistic to receive an increase.
2.After you have completed a successful project
Normally when a project goes well everyone is pleased. You have probably been on the right end of some praise from your manager, and you can point to your track record in getting things done. The perfect time to ask.
3.Three to four months before or after your annual review
This assumes your company does have annual reviews, of course. If they do, then that is when any normal pay rise will normally be agreed. And the amount will generally be in-line with what everyone else is receiving as a percentage. By asking for a (justified) pay rise well away from the normal review time you force your company to look at your case in isolation.
What is the average pay rise in the UK in 2023?
At the time of writing we are only in March, so not yet a quarter of a way through the year. There are strikes happening on a weekly basis and inflation is still soaring.
Amidst all this turmoil there are some clear trends, not least the UK government’s decision to raise the national minimum wage by 9.7% in April 2023. According to the ONS, the average pay rise for the private sector was 7.3% between October and December 2022.
This suggests that a good pay rise in 2023 is going to be more than 10.0%, and even that may not be enough to counter the impact of inflation.
How to ask for a pay rise
There is a real skill to asking for a pay rise in a way that gives you the best chance of getting a positive answer.
“Because I’m Worth It: How to Ask for a Pay Rise” is a new book by Bob Stark that aims to give you the confidence and skills to ask for a pay rise in the right way.
Holding back from asking for a pay rise you deserve is a guaranteed path to resentment. Sooner or later, that frustration is going to start eating away at you. So when you discover the confidence to do something about it, the feeling is truly liberating.
Order your copy today on Amazon: Because I’m Worth It: How to Ask for a Pay Rise
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