INCREASES IN SALARY

Am I entitled to an increase?

An employee’s first point of reference would be to consult their personal written contract of employment. Should the employee not have a written contract of employment, one would have to consult the written Company’s Policies and Procedures to see if the right to an annual increase is guaranteed.

Whether the contract of employment refers to whether an employee is, or will be, eligible for a yearly salary increase could be dependent on many factors, the most important being,

• whether the company performed satisfactorily the preceding year as well as

• the performance of the employee.

 No guarantee of an increase

Even if there is no guarantee of an increase, employers who are running into financial problems, but whose employees might expect an increase, should at least inform the employees of their difficulties and their decision not to implement an increase well in advance of the expected increase implementation date. Not doing so is harmful to good workplace relations and opens up the risk of unfair labour practice complaints.

The right to annual salary increases

The basic rule is that employees do not have a right to an annual salary increase, unless it is:

• stipulated in an employee’s contract of employment;

• determined by a collective agreement between the employer and a trade union or by a bargaining council agreement; or

• set down by a sectoral determination applicable to the sector within which the employer operates.

The employee should remember that even though his / her right has been entrenched in so far as a written agreement between him / herself and the employer, this does not automatically mean or guarantee that the CCMA will find in the latter’s favour. One of the most important factors to be considered is the company’s financial status and or well – being.

 Negotiating a salary increase

Every employee at some point or another in their career feels underpaid, undervalued and over-worked. When considering whether, when and how to approach the employer to discuss a salary increase, it is a daunting thought to even the most confident of employees.

It is important always to recognize the difference between the value of the role that you perform and your value as an individual (or the employee's value). The two are not the same.

There is no 'proper' or standard way to ask for a raise or salary increase. It's not something that people are trained to do, and little is written about it. People use various approaches:

• they can write;

• discuss informally;

• discuss with colleagues and hope the boss gets to hear;

• they drop hints to test the water;

• they ask the boss politely;

• demand firmly;

• go over the boss's head, or

• maybe even threaten to resign,

• secure another job offer, or

• simply resign.

Knowing relative market rates helps objective assessment of situations - for employers and employees. For employees, it is vital that you have a good amount of information about the market, and not just your own situation, is helpful for employers and employees alike, and can avoid discussions centering on opinion or emotion.

Of course situations vary and industry averages are just a guide, but it's generally better to have some external perspective than to approach pay and earnings issues in complete isolation.

Salary levels are largely dictated by market forces (notably the cost of replacing and training the employee), and the contribution that the employee makes to organizational performance (which is particularly relevant for roles which directly impact on profitability). When you acknowledge this principle you begin to take control of your salary and earning potentials. Focus on developing your value to the employer and the market-place, rather than simply trying to achieve higher reward for what you are already doing.

The Cardinal Rule for receiving an increase in salary

The cardinal rule to remember when it comes to securing an increase is that you need to make yourself irreplaceable to your employer. Remember most employers are looking for staff that are able to bring a certain skills set required for the position for reasonable compensation and if you are unique in the quality and quantity of the work that you are able to deliver, chances are that you will get what you want in the end. Do not expect too much as there may be many other suitable employees ( including those who are unemployed) who could do your job just as well or even better, possibly with a better attitude and at a lower cost to company.

If you feel the need to ask for a raise, the most positive way to approach this is to ask for extra work and responsibility and link this to a pay rise, if not immediately then in the future. This is a grown-up approach that employers respond to better than simply asking for more pay for doing the same job.  You may ask for a performance related bonus or pay increase subject to achieving more, based on standards or output greater than current or expected levels. This again should be received positively by the employer because you're offering something in return, and not simply asking for more money, which most people tend to do.