Is it acceptable to request a 20% pay rise after only 12 months?

12345ABC

Hi, I took on a temp salaried role just before lockdown 1.0 for maternity cover. A couple of months in I was made permanent. Whilst I am grateful to be employed at this time I am considerably underpaid for a graduate role (degree was essential) and it is not motivating meet to want/or be able to work in the role for considerably longer. I have a yearly PR soon and would like to negotiate the increase.

Thanks

[Deleted User]

You'll need a rock solid business case for an increase of that nature - or indeed any nature.

What has been the trend over the last year? Many people have taken 'voluntary' pay cuts in the last twelve months to stay employed, so you need to judge the lay of the land.

wilfred30

You can ask.  Whether your employer thinks it's 'acceptable' to ask for such a large pay rise in the current climate is anyone's guess.

Sandtree

As long as you ask politely there is rarely any harm in asking... you just need to decide what you are going to do if they say its been a terrible year for them and so rather than a 20% increase you'll have a pay freeze instead.

Roles that ask for you to be a graduate (which I think is what you mean) vary greatly in income and can be not much more than NMW to 6 figure plus. A graduate scheme role still vary ±50% from the mean, though a higher minimum, but have lots of strings attached and can often see you discarded at the end of the scheme or in a role no better than you'd have gotten had you gone straight from school into the company.

Savvy_Sue

How does your current rate compare with the person on m/l? 

TBagpuss

If you are requesting a raise you will need to be able to show why it is reasonable and justified.

Reasons might include:
- If you are doing significantly more work, or work at a significantly higher level, than when you first started
- If you are getting paid less than others within the firm doing the same work, and with the same responsibilities (be aware that this can be hard to asses as you won't necessarily know all of the responsibilities or additional skills someone else has, or what the whole of their package includes)
- If you are able to show that you are getting paid significantly below market rates for the role (you will need to factor in things such as location here, and ideally base your comparable on job adverts as these are likely to be up to date, whereas historic statistics won't take into  account the impact of covid / furlough etc.

I don't thin that saying it's underpaid for a graduate role' is in itself very relevant. There are lots of jobs where a degree is needed or desirable which don't pay particularly high salaries, and even of the employer required a degree, then it doesn't automatically justify higher pay than another employee doing a similar job without a degree  - it's more appropriate to focus on what you are actually doing and how your pay compares with others within your organisation doing the same or similar role, to the same or similar level. 

20% is a huge increase. I don't think asking for an increase is out of line after 12 months, and if having done your research you can justify that level of raise then of course you can request it, but do do your research and be prepared to justify what you are requesting. 
If you are able to do so, it may be helpful to ask colleagues in similar roles about their experiences in asking for or getting any pay rises.

And do think about how Covid has affected your employer. If they have furloughed lots of staff they are likely feeling the pinch and any request for increased pay is much less likely to be successful than if the pandemic has meant they are much busier than normal and are expanding, for instance. Most employers will have added costs due to covid so profit margins are squeezed, and as unemployment is rising, unless you have very niche, in demand skills you are not in as strong a bargaining position as you would be in a more buoyant financial climate. 

Without knowing your role or employer, my best guess would be that a 20% raise is probably highly unlikely and asking for one that large may not go down well, but do your research, decide what is realistic and be willing to make your case

onylon

There is no harm in asking but I've never managed to get a significant increase via negotiation despite being paid less than anyone else doing the same work. The company line is usually something along the lines of "we only offer up to 5% increases and it wouldnt be fair on everyone else to make an exception" or " but you only have X years experience". My current employer wouldnt even grade my role or offer an inflation level pay rise this year because of "market conditions". There is no point in pushing it as even if you get a rise its probably not worth working with a sulky boss who blames you for the hole in his budget this year. He/She may also downgrade your PR to justify your low salary rather than increasing your salary to match the glowing PR.

My advice would be to check out the market and find out if other employers pay more for a similar or better roles. Good staff are rarely unemployed so a new employer needs to lure you away from your current job with a better salary, benefits, flexible working, more interesting work, potential for advancement or whatever it is you are looking for.

Thrugelmir

Is your only motivation money?  Unless you've been an exceptional performer don't price yourself out of a job. People are expendable. There's plenty of people looking for work. 

Manxman_in_exile

12345ABC said:

...  I am considerably underpaid for a graduate role (degree was essential) and it is not motivating meet to want/or be able to work in the role ...

What actually is the role?  Not being funny, but a degree seems to be an "essential" qualification for many jobs that might only have required a couple of A levels (if that) when I graduated.

Are you a special asset to your employer, or could they go out onto the street and find a dozen similarly qualified graduates straight away?

(I was going to add that doing a temporary maternity leave job might seem an odd way to start a meaningful career anyway - but that's what I did so can't really knock it... )

elsien

Do you like the job?
Because if you don’t, you’re not going to be motivated however much you are paid?
Or are you begrudging it because you feel undervalued? 

Sandtree

Thrugelmir said:

Is your only motivation money?  Unless you've been an exceptional performer don't price yourself out of a job. People are expendable. There's plenty of people looking for work. 

Interestingly the Motivational Theorists stated that income was a "hygiene factor" rather than a "motivational factor" and so its absence demotivates staff but its excess doesn't motivate (proportionally speaking). 

The OP stated they feel notably underpaid for the job and that would tie in with the theorists and make the OP the norm rather than money orientated. If they actually underpaid is a separate debate but broadly irrelevant to if thats how they feel and therefore its impact.