How to secure a pay rise in the current climate

Last year, at the summit of the financial crisis, salaries for financial services professionals shrunk by an average of 10-15% and as yet there's no sign of a rebound. But is there any way of securing a pay rise in the current climate?

Salaries have remained stagnant going into the second quarter of 2010, according to the latest recruitment update by recruiters Robert Walters in Ireland. The 10-15% pay cuts introduced in 2009 "have not been restored, although we do not anticipate any further cuts in the short term" it says.

Obviously, you could argue that in the current economic scenario in Ireland many would be thankful of simply being in gainful employment. However, should you wish to claw back your now more-diminutive pay packet, what's the best way of doing this?

"The simplest way is to move jobs," says Eoin Blake, director of headhunters Lincoln Search & Selection. "Domestic banks have self-imposed salary and promotion freezes, and other firms are unwilling to increase costs unnecessarily. Some areas - such as corporate recovery and credit - are very active and candidates can demand pay rises. However, by and large people have to look externally to achieve this."

But, assuming you're not willing to switch positions, there are other ways of twisting your boss's arm into offering a pay rise, suggests Paul Mullen, director of Irish career coaching firm Measurability.

"Do your research and find out what you're worth, to ensure your salary is pitched against the market. Then organise a meeting with your manager outlining the case for why you deserve a pay rise based on current and future performance targets," he says. "Even then, your boss's hands may be tied, so try to bump up your salary by other benefits - schooling costs, healthcare, pension, additional holidays and a performance related bonus."

The prospect of a buyback - being counter-offered by your current employer having secured a new position - still isn't on the table, suggests Blake. Even if you're successful, this is tantamount to putting a "gun to the head" of your employer, suggests Mullen.

"Most employers resent it, and most employees who use this as a threat leave after 12 months anyway," he says. "It also means you're likely to be bypassed for future pay rises and promotions by someone who has demonstrated loyalty."