{"id":16895,"date":"2022-09-20T15:21:25","date_gmt":"2022-09-20T15:21:25","guid":{"rendered":"https:\/\/migqxjzty5-staging.onrocket.site\/?p=16895"},"modified":"2022-10-20T12:47:17","modified_gmt":"2022-10-20T12:47:17","slug":"how-much-of-a-pay-rise-do-i-need-right-now","status":"publish","type":"post","link":"https:\/\/www.adzuna.co.uk\/blog\/how-much-of-a-pay-rise-do-i-need-right-now\/","title":{"rendered":"How much of a pay rise do I need right now?"},"content":{"rendered":"

With inflation currently at <\/span>9.9%<\/span><\/a>, the costs of basic goods are skyrocketing. We\u2019re being hit with rising energy bills as well as a food shop that is going up and up.\u00a0<\/span><\/p>\n

Companies are trying to counter these rising costs for their workers with increased wages. In the three months leading up to <\/span>July 2022<\/span><\/a>, wages increased by 5.2%, but when you take inflation into account, workers are actually seeing a 2.8% decrease in the value of their pay packet.\u00a0<\/span><\/p>\n

In this post we will take a look into the increase of cost of living, how does impact current salaries and how companies and employees should take these indicators when negotiating a salary increase.<\/p>\n

 <\/p>\n

Should I be asking for a pay rise?<\/h3>\n

If you haven\u2019t seen a salary increase in recent months, you\u2019ll be worse off than you were a few months ago.\u00a0<\/span><\/p>\n

\"\"<\/p>\n

The Office for National Statistics (ONS) has created a <\/span>calculator<\/span><\/a> that demonstrates what you should be earning based on the current rate of inflation and what you should be earning in line with current average salary increases. For someone who has earnt \u00a335,000 since last year, their earnings are worth over \u00a31,000 less than they were before. This means that pay needs to increase by over \u00a33,000 to stay in line with inflation or by just under \u00a32,000 to keep in line with current average pay growth.\u00a0<\/span><\/p>\n

The <\/span>Governor of the Bank of England<\/span><\/a> has warned that by asking for inflation matching pay rises, inflation could get out of control, and become embedded in our country\u2019s financial systems. This could mean more issues, further down the line. With inflation predicted to hit 13% later this year, our pay packets are going to stretch far less as the winter draws in.\u00a0<\/span><\/p>\n

In short, there\u2019s no right answer, but workers should absolutely be looking for an increase, even if it does simply match the national average.\u00a0<\/span><\/p>\n

Employees are being encouraged to make requests for pay rises that focus on individual value, rather than just due to increased living costs, as not all employers can afford to meet inflation for every employee.\u00a0<\/span><\/p>\n

 <\/p>\n

What do pay rises look like across sectors?<\/h3>\n

There\u2019s a widening gap between the public and private sectors when it comes to pay rises. The private sector saw a <\/span>5.9%<\/span><\/a> pay rise in the three months up to June 2022, while the private sector saw a rise of just 1.8%. This is one of the reasons why so many unions are threatening strike action unless their workers receive a huge increase.\u00a0<\/span><\/p>\n

Within the public sector, some roles are seeing an increase. Teachers for example saw a 5% pay rise when schools reopened in September, and new teachers are receiving 8.9% more than their predecessors.\u00a0<\/span><\/p>\n

Meanwhile, most NHS doctors and dentists are receiving a 4.5% increase, while some of the lowest paid NHS employees such as porters and cleaners are getting a 9.3% increase.\u00a0<\/span><\/p>\n

For MPs, it was announced in April that they received a 2.7% increase in the last financial year.\u00a0<\/span><\/p>\n

 <\/p>\n

Will living costs come down?<\/h3>\n

\"\"<\/p>\n

Unfortunately not. This is why knowing your worth when it comes to pay is vitally important.\u00a0<\/span><\/p>\n

Investment bank Goldman Sachs has suggested that inflation could peak at 10.8% in October (which is below the Bank of England\u2019s estimate) and slow to <\/span>2.4%<\/span><\/a> by the end of next year. However, this doesn\u2019t mean costs will come down, it will simply mean that the rate at which the costs of goods is increasing will slow.\u00a0<\/span><\/p>\n

The Bank of England\u2019s response to inflation has been to raise interest rates, encouraging us to save rather than spend so that we buy fewer goods. With us collectively buying less, it is hoped that prices will stop rising so fast.\u00a0<\/span><\/p>\n

 <\/p>\n

How much should my job pay me?<\/h3>\n

Here\u2019s where salary transparency is key. If your organisation publishes an annual salary report, focussing on for example the gender pay gap, you should be able to work out where you sit within your organisation\u2019s pay scale.\u00a0<\/span><\/p>\n

If not, these conversations can be tricky. Employers often don\u2019t like employees discussing their salaries, especially if they pay employees at the same level in the same team different wages, or pay different teams vastly different rates. However, there is no law against you discussing pay with your peers and colleagues. Under the Equality Act 2010, pay secrecy (prohibiting employees from discussing their pay with others, even with a signed employment contract) <\/span>cannot be legally enforced<\/span><\/a> as long as you are discussing your pay to find out whether they were being paid differently to a colleague, on the grounds of discrimination.\u00a0<\/span><\/p>\n

Outside of your employer, spend time investigating your market rate. Look at what competitors are offering for your role, <\/span>value your CV<\/span><\/a>, and <\/span>search for jobs<\/span><\/a> you\u2019re qualified for.\u00a0<\/span><\/p>\n

If your job has dramatically changed, your responsibilities have increased and you\u2019ve been promoted in all but name, try to benchmark what you should be paid based on your roles and responsibilities rather than your job title.\u00a0<\/span><\/p>\n

 <\/p>\n

How many people successfully get a pay rise when they ask for one?<\/h3>\n

Just 1 in 5 women who ask for a pay rise receive one, compared to just less than a third of men, meaning a success rate difference of over 10%.\u00a0<\/span><\/p>\n

The gap is even wider when you consider how many women ask for a pay rise in the first place. The <\/span>YouGov<\/span><\/a> survey data shows that while 43% of men have asked for a pay rise in the last 12 months, only 33% of women have.\u00a0<\/span><\/p>\n

Gender is not the only divide for workers asking for and receiving pay increases. More adults in traditionally \u201cmiddle-class\u201d occupations have asked for a pay rise and been more successful than their counterparts in more working-class professions.\u00a0<\/span><\/p>\n

Recruitment firm <\/span>Robert Walters<\/span><\/a> found high levels of salary dissatisfaction among black and ethnic minority groups, with just 1 in 5 black professionals receiving 75% of the raise they requested compared to 35% of white professionals.\u00a0<\/span><\/p>\n

 <\/p>\n

When is the right time to ask for a salary adjustment?<\/h3>\n

Once you\u2019ve passed your probationary period, salary discussions can always be on the table.\u00a0<\/span><\/p>\n

 <\/p>\n

Some employers will do regular salary reviews either every year or every six months. Although these are often an opportunity for your employer to put a number on the table, make sure you have a number in mind.\u00a0<\/span><\/p>\n

Outside of these formal discussion points, keep an eye out for other opportunities. The scenarios below could all signal that it’s time for a salary adjustment.<\/span><\/p>\n

 <\/p>\n

Your role has changed and you\u2019ve taken on more responsibility. <\/b>Perhaps there is an additional person reporting to you or you\u2019re leading a strategic project? This could be an opportunity to not only discuss a salary increase but also a potential promotion.\u00a0<\/span><\/p>\n

 <\/p>\n

You\u2019d like a promotion due to performing above and beyond for a significant period. <\/b>If your annual reviews are coming up as exceptional time and time again and you\u2019re always getting great feedback from colleagues this could be a time to ask for a promotion and a pay increase.\u00a0<\/span><\/p>\n

 <\/p>\n

You\u2019re being paid below your colleagues for the same job. <\/b>Can be a really difficult one to navigate. Frame it as a discussion around where your salary sits within a market rate, how well you\u2019re doing, and why you deserve more money.\u00a0<\/span><\/p>\n

 <\/p>\n

You\u2019ve been offered a new job. <\/b>Switching jobs can have a dramatic effect on your pay packet. On average, it\u2019s <\/span>6.6%<\/span><\/a> but if you\u2019re willing to switch industries or roles it could be even more.\u00a0<\/span><\/p>\n

 <\/p>\n

With employers desperate to retain top talent, counter offers are not unusual. Yep, quitting your job can be a great way to secure a pay rise – either with your employer or a new one.\u00a0<\/span><\/p>\n

 <\/p>\n

Financially the books aren\u2019t balancing.<\/b> This is something to be really mindful of. With basic costs increasing it can be hard to budget. Spend some time totting up all of your household costs and keep a track of how these are increasing month on month.\u00a0<\/span><\/p>\n

Your financial well-being is important, so make sure you discuss this with your employer. If a pay rise is off the table, ask about their financial well-being policy. Currently, around 17% of businesses have a formalised financial well-being policy in place, but this is set to rise to <\/span>94%<\/span><\/a> in the next 2 years. 83% of employers have already made the commitment to boost financial well-being support.\u00a0<\/span><\/p>\n

 <\/p>\n

Ready to ask for a pay rise?<\/h3>\n

\"\"<\/p>\n

Although it is best to frame a pay rise request around your contributions to your workplace and increased responsibilities, your pay rise should in real terms help you to cover your increased living costs. It\u2019s vitally important that you ask for enough to live on.\u00a0<\/span><\/p>\n

Our step-by-step guide on asking for a pay rise details exactly how you should be asking for a pay rise and what factors you should take into consideration.\u00a0<\/span><\/p>\n

 <\/p>\n

\"\"\u00a0Read more: <\/strong>How are inflation and rising living costs impacting UK businesses?<\/a><\/p>\n

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If you would like to hear more about our new product Adzuna Intelligence<\/strong>, visit our dedicated website<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

With inflation currently at 9.9%, the costs of basic goods are skyrocketing. We\u2019re being hit with rising energy bills as well as a food shop that is going up and up.\u00a0 Companies are trying to counter these rising costs for their workers with increased wages. In the three months leading up to July 2022, wages Continued \u00bb<\/a><\/p>\n","protected":false},"author":51,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1165],"tags":[1112],"class_list":["post-16895","post","type-post","status-publish","format-standard","hentry","category-pay-benefits","tag-featured"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/16895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=16895"}],"version-history":[{"count":0,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/16895\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=16895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=16895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=16895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}