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| Woman sitting on the sofa in her living room, reviewing the bills of her expenses. Photo for illustration |
Much has been said about the strategies employees should use when approaching their bosses for a pay rise, from leveraging market data to highlighting how their performance has positively impacted the company. While these tactics are crucial for increasing the chances of securing a raise, less attention has been given to determining the right moment to initiate this often uncomfortable conversation. As an employee, how do you know it is the right time to discuss a salary adjustment? TUKO.co.ke spoke to personal finance expert Margaret Njeri, who shared insights on how employees should evaluate their financial situation to know when to start this important discussion.
Evaluate your financial situation before making the ask Personal finance expert Margaret Njeri stated that employees should regularly assess their financial standing, particularly during significant life changes or economic shifts like inflation. “I recommend employees evaluate their financial situation for a salary review at least once a year. However, key moments like job role changes, hitting performance milestones, or significant life events such as getting married or buying a home may necessitate a more frequent review,” Njeri starts off. US economy Njeri points to personal financial indicators that suggest it may be time for a salary increase.
These include rising living expenses, inability to meet savings goals for retirement or emergency funds, increasing debt, expanded job responsibilities without a corresponding raise, and market research showing peers earning more in similar roles. “When inflation rises, the cost of everyday goods and services increases, meaning your current salary may no longer cover your usual expenses as comfortably as it once did. Let’s look at transportation, rising fuel prices or increased costs for public transportation can make commuting more expensive. If you’re spending more just to get to work, that’s a strong signal to reevaluate your salary,” Njeri noted. Margaret Njeri is a financial advisor and coach.
She also warns against delaying salary reviews, highlighting the associated risks. “The financial risks of delaying a salary review include your current salary becoming less valuable over time, which affects your ability to cover essential expenses like housing and utilities,” she continues. To mitigate these risks, Njeri advises employees to save consistently, prioritise essential expenses, and develop a solid financial plan while preparing for the salary review. Understanding company considerations for salary reviews HR specialist Rose Agneta Khamunde, on the other hand, highlighted that employers consider several key factors when deciding whether to approve or deny a salary review.
“Employers assess employee performance, industry benchmarks, internal pay equity, and the financial stability of the company when making salary review decisions,” she explained. Timing is also crucial when requesting a raise. According to Khamunde, the best time to approach your boss is before the annual budget planning or during performance reviews. “This ensures that your request can be considered during budget discussions, and aligning your request with performance evaluations increases your chances of success,” she says. She also advises employees to be mindful of the company’s overall performance. “Company performance plays a significant role in salary reviews. When the company is doing well, there is often more flexibility in the budget for salary adjustments,” Khamunde explained, adding that timing your request after a successful quarter or year could boost your chances.
Both experts agree that structuring your salary review request to align with company goals is key to getting a positive response. “When requesting a salary review, focus on how your work directly contributes to the company’s broader objectives, like revenue growth or cost savings,” Khamunde opines. Njeri, the personal finance expert emphasised the importance of being well-prepared before starting the conversation. “Research market salary data, document your contributions, and set a target salary range. Your value doesn’t decrease based on an employer’s ability to see it. Advocate for what you’re worth, because no one will fight for your success as passionately as you will,” she advises. Preparing for objections and practising negotiation skills, she noted, can also help employees navigate the conversation with confidence. According to Njeri and Khamunde, with the right strategy, preparation, and timing, employees can confidently approach their bosses and make a compelling case for a salary review.
by Muyela Roberto