The true cost of not asking for a pay rise

Wanting a pay rise is a perfectly valid request but the Catch-22 is: you’ve got to ask.

For most women, we want other people to recognise and reward us for our results and efforts, rather than setting our own worth and communicating that to the world. So instead of asking, we wait frustrated and fed up for that pay rise to land on our desks and in our pay slips. Here’s the cost of not asking.

And it makes sense - for millennia and right to today, women have been unpaid for the household labour they provide with cooking, cleaning, laundry and childcare, not to mention the mental load of remembering, tracking and directing to keep the household organised - all of which still fall primarily to women. For centuries, they couldn’t own property, open bank accounts, take out credit, and even sign a rental lease. My mum had to have a male guarantor on her lease in the 70s and this is only one generation ago! Because historically and today, women are also notoriously underpaid in almost all professions, the gender pay gap is still sitting at over 22.8% in Australia accounting to the Australian Government’s Workplace Gender Equality Agency and 37% around the world according to the World Economic Forum, and judged more critically than their male colleagues despite making great leaders, savvy investors, and high performers.

Despite all this we are brave, we are bold, and we are backing ourselves to earn our worth and ask for what we deserve. 

But it’s still super hard to ask, right?

Awareness and Choice

Something I am very passionate about as an Executive Coach is raising important information to awareness. I like to say first step is Awareness, second step is Choice. You need to have a full and clear picture of all the realities and all the consequences so you can build the confidence and the motivation to do things differently. 

When it comes to pay rises, this means calculating the costs. 

We want to get ourselves really aware of what being stuck where you are (not being given the pay rise or the promotion or going for the career change that you want) is truly costing you. Money is one part of that, but there's so much more. And...

• What does that mean for today? 
• What does that mean for tomorrow? 
• And what could that mean in the future? 

Here are 3 types of costs that you should take into consideration when you’re avoiding asking for a pay rise:

1. Financial costs

For you, these could be lifestyle impacts such as your house, car, holidays, and maybe even base security like health, family, and time off. I controversially believe that if your salary only goes up by 1-3% per year (in line with inflation), you actually aren’t getting a pay rise. Because your pay is going up with the cost of living so only buys the same amount! And if you don’t get a pay rise at all… well, perhaps we could even say your company is stealing from you (because you’re getting the same money, but it buys less). You need to see the cost for what it really is.

2. Personal costs

If you’re feeling undervalued and underappreciated, what could this be costing you in self-worth, self-confidence, and self-esteem, and your beliefs about your potential, success, and progress? How is this affecting your health, your emotions, your relationships?

3. Spiritual costs

And finally, what could this be costing you in variety, growth, purpose, passion, inspiration and taking your soul to the next level? Can your spirit really sing if it’s stagnating? Can you shine your light in the world if you feel overlooked and unappreciated? Can you fulfill your life’s purpose without the internal and external resources to make it happen?

And remember: compared to men, women generally earn less in equal roles, don’t negotiate pay, work in female-dominated industries with a gender pay gap, are left out of senior leadership, take time out of the workforce to care for children/partners/parents etc, and (ironically) live longer.

This is broader than just you!

Every time a woman negotiates a pay rise, it paves the way for other women to do the same. And the same thing is true of promotions and changing careers to a higher paying profession. That’s why I share so much about my salary increases and job changes - I want to inspire you and others that you are allowed to ask for what you deserve and own your worth. Nobody decides that but you.

Calculating the cost is Step #1 of my 5-Step Career Change Formula to ask for a pay rise and earn your worth. You can find out what to do next AND get a script for asking for a pay rise in my free “Underpaid and Overlooked Coaching Action Guide”.

CLICK HERE to download my free Pay Rise Action Guide 

Lata xx