Nicola Mawson | 07 February 2025
Nicola Mawson is an award-winning financial journalist, strategist, content creator and photographer who has worked for a number of media houses and in public relations
Salary increases after inflation have lagged increases in the cost of living that has surged from 2020, easing only late last year. Economists predict a slightly higher inflation rate ahead, following an average 4.4 percent cost-of-living increase for 2024.
When salaries lag inflation for more than a year, compounding worsens the gap. In 2023 average salary increases were expected to be between four and six percent according to Old Mutual Wealth, and did not keep pace with the inflation rate that exceeded seven percent that year.
The Covid-19 pandemic also stalled wage hikes in preceding years, deepening the impact of subsequent below-inflation increases.
As Old Mutual Wealth puts it: “South Africans are getting poorer as wage increases lag behind inflation.” Read more: How does inflation affect me and my budget?
It’s no surprise, then, that employees are looking for salary increases and are more likely to approach employers for a raise. But few people know how to do this effectively to maximise their chances of success. Experts warn against making these common mistakes:
There are certain times when it is not a good idea to approach our employer for a raise.
Requesting an increase during a company’s financial downturn or outside of performance review cycles may reduce your chances of getting a raise, Fifi Sali, human capital executive at fibre infrastructure firm Vumatel, explains.
Consider how your company is performing – and whether it is going through budget cuts, layoffs or financial struggles that make granting increases more difficult, Nelly Mohale, head of human capital at human resources consultancy company Decusatio Human Capital, suggests.
Suran Moodley, group managing executive from advisory business, Ariston Global, points out that annual salary increases are not mandatory unless these have been negotiated through, for example, a bargaining council for unions. He explains that most companies take the current cost of living – otherwise known as the consumer price index (CPI) - and their own performance into account when considering salary increases.
Employees should review company reports, attend meetings and observe trends within an organization to understand a company’s financial position, Mohale recommends.
Do not try to open discussions about your salary during busy or stressful times for your bosses, Nene Molefi, CEO of Mandate Molefi, says.
When bosses are overwhelmed with work, there will most likely be “a less productive conversation”, Mohale adds. “The best time to request a raise is when the company is performing well, securing new contracts, or exceeding financial targets,” she says.
Mohale says employees can research salary benchmarks for their industry and role using platforms like Glassdoor, Payscale, or industry salary reports to understand what professionals with similar experience earn.
But you should not assume that your salary should be market-related and that you can expect to earn what salary surveys suggest is the pay scale for someone in your position.
There is no such thing as "market-related" remuneration, Moodley says. “Instead, there are distinct market segments,” he says.
Sali explains that “relying solely on salary surveys without considering experience, performance and company structure can lead to unrealistic expectations”. Employees need to be prepared, she notes.
There are several factors that affect remuneration, Moodley says, which includes a company’s revenue, operational complexity (whether multinational, national, or local), and the number of employees. He adds that, within your company, equal pay for equal work must be upheld as per the law.
However, Sali cautions that comparing salaries to colleagues without knowing the full picture about their role and experience can create misleading assumptions about your own worth.
Moodley says that employees should not be asking for an additional increase beyond what the company has offered when all they are doing is meeting the job requirements. If you want more than inflation, you must present a well-reasoned case to show how you add value to the company’s bottom line, he says.
You can do this by highlighting any cost savings or added value you contribute to the organisation, Moodley says.
Sali also notes that many employees don’t understand what success looks like in their role, making it difficult to articulate their contributions effectively.
Mohale suggests preparing a list of your contributions, achievements and any additional responsibilities you have taken on before you ask for a raise. “If possible, include quantifiable results, such as cost savings, increased revenue, or improved efficiency. By presenting well-researched facts, you make it easier for your employer to see the merit in your request,” she says.
Moodley also says that people should not assume that a qualification entitles them to a raise. “Unless an employee can demonstrate a greater value contribution as a direct result of their qualification, there is no business case for a higher salary on the back of it,” he explains.
Nicol Mullins, past president of the South African Reward Association, says it makes sense for you to proactively engage in skills development, how to exceed performance expectations compared to other employees and career planning with your manager, as this will give you a stronger position when requesting an increase or a potential promotion.
Employees often mistakenly believe that highlighting their heavy workload will justify a raise. Mohale says, while working hard is important, simply stating that you are overwhelmed does not provide a strong enough reason for a salary increase.
“Employers are more likely to reward employees who demonstrate impact rather than those who only express frustration,” says Mohale.
Molefi adds that people should demonstrate how their continued contributions will benefit the company in the future and should not wait to be recognised.
Getting emotional is unlikely to work for you and is more likely to put you at a disadvantage.
Mohale notes that, given that salary discussions can be stressful, it is easy to let frustration, disappointment or anxiety take control of the conversation. “Some employees become overly emotional, while others become defensive if their request is not immediately approved. This can make negotiations difficult and reduce the chances of a positive outcome,” she explains.
Sali adds that “another mistake is focusing on personal financial struggles rather than demonstrating the value they bring to the company”.
To remain professional, approach the conversation with a calm and confident mindset, Mohale says. “Prepare for potential objections and practice how you will respond without sounding aggressive or defensive.”
In addition, notes Nasriyn Snell, human resources director at health, wellness, insurance, wealth, retirement and investment advisory provider ASI Financial Services, “adopting an aggressive stance or implying an ultimatum can backfire and strain your relationship with your line manager”.
“Use neutral language to make your case. If the conversation becomes tense, take a moment to breathe and collect your thoughts before responding. Keeping emotions in check ensures that the discussion remains constructive,” adds Mohale.
Advaita Naidoo, Africa managing director at executive search company Jack Hammer Global, says it is vital to take a clinical approach, focusing on the specific value you bring to your employer and the solutions that benefit both parties. Propose creative solutions that are valuable to you but cost little to the company.
These solutions could be alternative benefits, such as additional leave days, flexible working arrangements, professional development opportunities or one-time bonuses, she says.
Being open to negotiating alternative forms of compensation shows professionalism and understanding of company constraints, adds Snell.
Molefi also says it’s important to ask for a timeline for when a decision will be made, send a follow-up email to summarise the discussion, and ensure that you understand what will be required to be considered for a raise next time.
