What is a Salary Review?
A salary review is a meeting with your employer to assess your pay and benefits package. They typically occur once a year.
What is the purpose of a salary review?
The purpose of a salary review is to provide an opportunity for both the employee and employer to discuss achievements, progression, development, responsibility levels and performance.
They are beneficial for the employer because it is an opportunity to retain the member of staff. If an employee is seeking more money, the chances are they are actively looking for work elsewhere. A salary review gives the employer a chance to address this.
If you are a valued member of staff and a positive contribution to the business, the last thing your boss wants is for you to think about terminating your contract of employment
The benefits for an employee is the opportunity to earn more money and the opportunity to obtain more responsibility and develop their position within the business.
How can I prepare for a salary review?
In order to maximise your chances of a positive outcome during your salary review, it is important to consider:
- Recent achievements, accomplishments and progression
- Did you help the business achieve it’s goals?
- Did you refine processes, streamline the business, help make savings?
- Ability and performance
- Has your work been completed to a satisfactory standard, in a timely manner, with a high degree of accuracy?
- Personal developments
- Have you developed your abilities through further training, qualifications or Continuous Professional Development (CPD)?
- Does your employee know about this
- Have you developed your abilities through further training, qualifications or Continuous Professional Development (CPD)?
- Internal/External salary benchmarking
- Review your salary against similar positions with others in your organisation and via wider the job market.
- Time-keeping and sickness record
- Have you had issues with lateness, lack of timeliness and unauthorised absences?
What is the process of a salary review?
A salary review is typically conducted between the employee and their line manager or a company director. This is usually an informal meeting in which both sides can discuss their thoughts.
From the employer’s point of view, it is an opportunity to highlight areas of improvement and to communicate whether they are getting what they want out of the employee.
From the employee’s point of view, it is an opportunity to acknowledge and respond to the the above, showcase achievements and highlight benefits of increasing their remuneration package.
How much should I ask for during a salary review?
You should always remain realistic. If you are earning £30,000 and the equivalent role advertised with another company is at £40,000 – then you have a good case. The inverse is true too.
Always keep in mind your replacement rate. It is no good asking for £100,000 a year if somebody could start the job tomorrow on £50,000!
Be realistic and you’ll do well.
Good luck!
