Disappointing pay rise? Here’s what to ask for instead

The Hays Salary Guide FY25/26 shows that 84 per cent of employers plan to offer pay rises at an average of 4.5% in the year ahead. This compares to the 80% who offered increases at an average of 5% in the last 12 months. It may not be enough to meet employee expectations, however, with those surveyed expecting an average increase of 6% over the coming year.

Given that most employers (84%) are experiencing skills shortages and taking longer to fill roles, it would be wise to keep existing talent happy. However, any manager has a salary budget to adhere to – and it can only stretch so far. If your salary increase falls short of expectations then, there are alternatives you can negotiate to bridge the divide.

What to ask for instead of a pay rise

Your total compensation package consists of both a financial compensation and more tangible and intangible benefits. These might include a positive work environment, flexibility, a good work-life balance, training, and opportunities for progression.

When a salary increase isn’t in line with what you were hoping for, consider what additional benefits you can ask for.

Additional flexible working

The latest Hays Salary Guide FY25/26 reported that flexible working was easily the most popular benefit among employees, with 58% putting it as the most important. With hybrid working now established it is getting to the point where this is virtually a necessity. According to the latest Salary Guide, this is especially the case in the middle of your career, between the ages of 25 and 39, when family commitments are often being juggled with work.

Asking for additional workplace flexibility can bridge a salary expectation gap, as it can sometimes save on outgoings such as additional travel and childcare.

While flexibility in where you work has now been embedded, when you work is also being reimagined. While not a new trend, over the past year the number of employees who want to work outside core business hours and in compressed working weeks has increased. The interest in four-day working weeks continues to grow. With several examples of organisations in Australia implementing four-day working weeks, many employees are hungry for more varied flexible approaches.

Additional annual leave

Permanent employees accumulate four weeks of paid annual leave, but a growing number of employers offer additional paid time off work to stand out as an employer of choice. And in the latest salary guide it was the second most valued benefit at 45%, with the next benefit (health cover) a long way third on 18%.

If time is money, an extra couple of days off each year could be a suitable middle ground for both you and your employer to bridge any salary increase divide.

Upskilling

Whether you are motivated by your career progression plan or the need to keep your skills relevant in our rapidly changing world of work, continuous upskilling is now an imperative for many. So, if a pay rise is not on offer or misses your expectations, can your boss offer further support for your skills development?

Training through either internal or external courses (such as those offered through Hays Learning) is the number one benefit employees seek today. But upskilling does not need to only involve formal courses. For instance, what challenging or exciting new work could you volunteer for to expand your skills? Is there a new project that interests you? Or is there an opportunity to learn new skills from a colleague or adjacent manager? Mentorships, webinars, and industry events can also help you build new skills.

You could also ask your boss about any desirable skills the team currently lacks. If these align with your career ambitions, your manager is likely to support upskilling in these areas to future-proof the abilities of the wider team.

Other benefits

Other common benefits include health cover, mental and physical health and wellbeing programs, work-life balance, company car allowances or discount on products and services

Or you could consider asking for additional financial support in the form of budget for home office setup or supplies, share incentives, payment of professional membership fees, paid leave for professional study, payment of usage charges for employee-owned devices used at work or salary sacrifice.

Asking to bring your next remuneration review forward is another option to help offset a less-than-expected pay rise.

Look to your future

For many people, a smaller than hoped for pay rise can be upsetting and demotivating. But remember, salary is not the only way to recognise your value and recent successes.

Additional benefits can have positive long-term consequences for both your career and your overall health and wellbeing.

Many people would agree this is worth more in the long run than a small discrepancy between what you hoped for and what you were offered.

Download our Hays Salary Guide

Our Hays Salary Guide FY25/26 is based on a survey of 12,000 respondents. Whether you are asking for a pay rise or simply want to know your worth, download your copy to access typical salaries and insights relevant to your job and career path.

Download Hays Salary Guide FY25/26