What Not to Do If You Want a Pay Rise as a Temp Worker

People2people NZ • April 8, 2019

You’ve just discovered someone is being paid more than you, and it’s made you – understandably – angry. You want to have your hourly rate reviewed. You’re feeling ripped off and demand justice. Well, here’s what you shouldn’t do if you want to negotiate a pay rise as a temporary worker.

Compare Yourself to Others

The first step is to stop discussing money with colleagues. It’s none of your business what they get paid, and none of theirs what you are paid. You negotiated and accepted the rate that you have, and they did the same. Negotiating your pay means balancing the fine line between what the job is ‘worth’, what you will accept, and what the employer is willing to pay. More often than not, it is the budget of the line manager that dictates the pay rate of a temporary worker, but not all of the power lies with them. There’s no harm in asking your recruitment consultant if it is possible to get a higher base pay rate, but this is something you should do when accepting an assignment and not after you start work.

Call Up Another Agency When You’re Emotional and Worn Out

We had this happen to us just last week. A temporary employee who was hired by another temp agency found out that they were making less than the people2people temp workers. They called us and demanded that they be given the right to work through us. Please understand when we say there’s nothing that we can do about that. It was this other agency who introduced the employee to the on hire employer and they clearly have an employment relationship with them. We have absolutely no rights or responsibilities for other casual employees who work with different agencies. The only thing we could do was explain that the temp worker had to discuss this with their own agency, and that it would best if they do did so, calmly.

Complain About How Much Money The Agency is Making From You

This one is our favourite. Look, we’ll be upfront and admit that we’re a commercial organisation. We charge a margin on top of the temp workers’ pay rates because that is the source of our revenue as a business. Like any business, we have to be profitable to be a going concern. Agency margins are getting squeezed all the time. There may be some industries where a high margin is still the norm, but we live and work in a free market. You can’t think of what we charge the on hire employers and what you get paid and think that the difference is pure profit. This difference accounts for all of your costs including workers comp insurance, other insurances, payroll tax and super. Then there’s the costs of doing business, advertising, consultant salary, administration, rent, systems, equipment, and so on.

What to do If you Want to Have your Pay Reviewed

Here are some tips on what you should do if you want to negotiate a pay rise;

  • Be sure to review your job performance before giving your consultant a call. Have you been doing more work then you were employed to do? If you have, then that’s a great negotiating tool for getting a pay rise.

 

  • Understand the award that covers you and what the minimum rate for that award is. Your agency is legally bound to tell you the award that you work under (if any) and how they calculate your pay. If you feel that you aren’t being paid the proper amount, then take a look at the modern awards listing on the Fair Work Australia website to be sure. If you discover that you aren’t being paid enough then give your agency a call and quote the award, grade, and the minimum rate. They should review your pay rate as soon as possible.

 

  • Make sure that you’re nice about it all. It’s never easy to ask someone for a pay increase, and everyone is emotionally involved in how much they are paid, but going into negotiating a pay rise with an aggressive attitude only serves to put people offside. They aren’t going to listen to what you say when they are too busy focusing on how it is being said. Stay calm and be reasonable about things. Be polite and be prepared to have to wait to get an answer about your pay. Recruiters never agree to increase pay right away; they have to take some time to consider what you’ve told them, look at the role, and talk to the on hire employer before they can give you an answer.

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In business since 2002 in New Zealand, Frog Recruitment is an award-winning recruitment agency with people at our heart. Located across Auckland and Wellington, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 RCSA Excellence in Candidate Care Award, we are dedicated to helping businesses achieve success through a people-first approach.

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The UK's equality watchdog wants to stop employers asking job applicants about their previous salary or pay expectations. But would banning these questions create fairer pay outcomes, or could we be losing a valuable conversation? The problem isn't having a conversation about salary. It's using someone's previous salary to determine how little you can get away with paying them. That's the distinction at the heart of a debate emerging in the UK, where the Equality and Human Rights Commission (EHRC) has recommended banning employers from asking job applicants about their salary history or expectations. The concern is understandable. If someone has been underpaid in a previous role, using that salary as the starting point for their next offer can mean existing inequalities follow them throughout their career. But from a recruitment perspective, there's another side to the conversation worth considering. Your previous salary shouldn't determine your future worth. Let's say two candidates apply for the same position. They have comparable experience, similar skills and the same ability to perform the role. One currently earns $80,000. The other earns $100,000. Should the employer offer the first candidate less simply because they've previously been paid less? Absolutely not. Remuneration should reflect the responsibilities of the role, the skills and experience required, internal equity and current market rates — not simply what someone managed to negotiate with their previous employer. Otherwise, people who have historically been underpaid can find themselves perpetually playing catch-up. This can be particularly problematic for people returning from career breaks, those who have prioritised flexibility over salary, and employees who have spent years with the same organisation while market rates have moved ahead. A change of employer should be an opportunity to reset remuneration against the market, rather than carry forward an outdated benchmark. But salary conversations can work in candidates' favour. While we understand the motivation behind the UK proposal, there's an important difference between asking about salary history to justify a lower offer and discussing remuneration to help someone understand their market value. As recruiters, we're constantly having conversations with employers and jobseekers about salary. Those discussions give us valuable insight into remuneration trends across different industries, professions and locations. They also allow us to challenge expectations on both sides. For employers, that might mean explaining that their proposed salary isn't competitive enough to attract the experience they're looking for. For candidates, it can mean helping them recognise that they've been underpaid and encouraging them to aim higher. Someone earning $75,000 might assume that asking for $85,000 is ambitious. But if comparable positions are paying $90,000 to $100,000, that conversation can be genuinely empowering. The objective shouldn't be to anchor someone's next salary to their previous one. It should be to help them understand what their skills are worth in today's market. Why are we so uncomfortable talking about money? New Zealanders and Australians can be surprisingly reserved when it comes to discussing salaries. We regularly encounter candidates who are uncomfortable disclosing what they currently earn or what they'd like to earn next. And that's understandable. Jobseekers want to achieve the best possible outcome, but they also worry about pricing themselves out of an opportunity. That concern can be particularly pronounced in a challenging employment market, when competition for roles is high and candidates may feel they have less negotiating power. 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For jobseekers, preparation is key. Before entering a recruitment process, research the market rate for comparable positions and consider the full remuneration package, including benefits, flexibility, development opportunities and progression. If you're uncomfortable disclosing your previous salary, it's reasonable to steer the conversation towards your expectations for the new role. For example: "I'd prefer to focus on the responsibilities of this position and the market rate for the experience I bring. Based on my research, I'm looking for something in the range of $X to $Y." And if you're working with a recruiter, use their market knowledge. A good recruiter should be able to explain whether your expectations are realistic, identify where your current remuneration may be below market and help you approach negotiations with greater confidence. Better transparency, not less conversation. The UK proposal raises an important issue, and the principle behind it is one we support: people shouldn't be disadvantaged in their next job simply because they were underpaid in their last one. But banning conversations about salary expectations could also remove an opportunity for candidates and recruiters to have constructive discussions about market value. The focus should be on making those conversations fairer and more transparent. Employers should establish salary ranges based on the role and the market. Recruiters should challenge unrealistic expectations and advocate for fair remuneration. And candidates should feel confident discussing what they're worth without worrying that doing so will cost them an opportunity. Ultimately, the question shouldn't be "What were you paid before?" but "What is this job worth, and what value will you bring to it?"  At Frog Recruitment and people2people, our consultants work with employers and jobseekers across New Zealand and Australia, providing market insights and remuneration advice to support informed hiring decisions. If you'd like to understand how your salary or hiring budget compares with the market, get in touch with our team.
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