3 alternatives to resigning if your pay rise request is denied

So you’ve asked for a pay rise and your request is denied? Totally sucks! But what do you do now?

While I’m always a fan of  simply handing in your resignation so you can go and get a job somewhere else usually earning more because you’ll be calibrated against the open market not your current pay (and who wants to stay in a place you’re undervalued?!), there might be some other options that can have big benefits today and tomorrow before you throw in the towel. Here’s 3 alternatives:

Alternative #1: Negotiate a title promotion

As a contractor, I once negotiated a title promotion on my contract renewal to "Senior Change Manager" so I could use this new title on my LinkedIn and CV, even though internally to projects and the teams I was still just referred to as a "Change Manager" (hell, even as a Consultant I still just refer to myself as a Change Manager when working internally with teams). You do want something in writing so you have that evidence and proof, but it can be way easier for a boss to make this happen than trying to get more staff budget for a pay rise. Title promotions often don't cost the company anything more (especially if you're not moving up a salary band). But the value to you could be immense because it sets you up for a pay rise when there is more cashflow AND for a pay rise when you move to your next role - especially if externally. You'll be calibrated against the market of the higher-level title, which can have a higher salary. Sometimes in career you have to be creative - it's ok to make decisions that serve some of your other values apart from money when they may serve you down the track to make more money!  If you've got time, great results and awesome feedback behind you - feel confident to ask for a title promotion.

Alternative #2: Negotiate other benefits

In these challenging economic times, a pay rise might be off the table. But that doesn't mean your negotiations have to end. What are some other benefits you could get instead of a pay rise?

• Maybe it's going from a 10-day fortnight to a 9-day fortnight for the same salary?
• Getting an external course paid for (or paid time off to attend it)?
• Or perhaps getting seconded into a project to build new skills and experience?

You could go into the negotiation asking for that instead of a pay rise, or as Plan B if the pay rise requested is declined. Especially when some of these things could help you make more money in the long-term, such as freeing up time to start a side hustle or go for a promotion with higher pay when the time is ripe. You're still getting more, and you'll certainly feel like a valued employee.

Alternative #3: Appreciate the current environment AND right-size your effort

It's no secret that times are tough at the moment and with the cost of living going up, you might get a “not now” instead of a “hard no”. The job market generally peaks and troughs in line with the economy, macro trends and other factors. You might choose to simply appreciate the current environment and know that it won’t last forever and when pay rises are possible, you’ll be first on the list. I've asked for a pay rise in most jobs and if they say no and there's a good reason for it (i.e. it's COVID and no one's getting pay rises, or we're restructuring and no one's getting pay rises etc) I have a lot of empathy and understanding. Realise the bigger picture and macro factors. It's good to be aware but also know that you don't have to be constrained by it. Share your acknowledgement and sympathy of the current situation - your boss will appreciate it. And - importantly - don’t over-give and over-commit because you feel guilty or embarrassed. Keep doing the great job you do, and revisit the conversation in the future. If they say no again when times have improved, that might be when you make the decision to resign for good.

I’ve just kicked off my free Underpaid and Overlooked Workshop and our Live “Earn Your Worth” session is tomorrow Wednesday 18 February. You can ask questions and get scripts to negotiate a pay rise, promotion or career change. 

Register for my free workshop and join me live tomorrow here

Lata xx