10 Tips For Negotiating A Salary Increase
- Aug 20, 2021
- 4 min read
Written by: Jean Fleming, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Asking for a pay rise can often make us feel awkward even if we feel we deserve it. We don’t want to rock the boat, risk ruining our working relationship with our manager or let them think we are not committed. Whatever the reason, you should always expect to be compensated fairly for the work you do.
To help you prepare, here are 10 tips to consider:
Be clear about your drivers
What has triggered your desire to negotiate your package? Have you taken on a new role, additional responsibilities, wider scope, had a promotion? Or is it that you realize you are paid low to market or considerably less than your peers?
Consider objectively whether your salary is already in line with the market rate for the job you are doing (both internal market and external)? Just because you have changed your job or responsibilities doesn't automatically entitle you to an increase.
Whatever the reason, you need to be clear that this is enough to warrant an increase. Gather your evidence e.g., market data, to support your case.
Also, think about your personal why. What will securing this increase get you? Not just more, but why do you need that money? Will it give you security, pay for a child’s education, secure that bigger house? Thinking about the why can often help give you the mindset and courage to open the negotiation. However, these ‘why’ points are not to be used in the negotiation – they are personal to you. Stick to the evidence only in your negotiation.
Know your worth
Be clear about your strengths, your achievements, and the value you add to the organization. Have tangible examples of how you have positively impacted the organization.
Your package
Consider all elements of your package when looking at your compensation, not just salary.
Do you have a bonus/pension/car arrangement? Does this offset a slightly lower salary? Is this an area you can explore as part of your negotiation? If a salary increase is not possible, could a change to variable pay or other benefits be considered?
Terms and Conditions
Think about what else you get from the organization that may offset any salary concerns. Are they investing heavily in your development? Are they giving you strong career progression, skill development, career support, visibility, a platform to let your personal brand shine, flexibility, or any other elements that make it a great company to work for? It may not be all about the money.
Think about your job title. Is it recognition of status that you are actually looking for? If so, can that be resolved solely with a change of job title or grade?
Prepare a business case
Help to make the decision easier for your manager. Prepare a business case that they can use to support approval through the various governance levels within the organization. Take your manager through the business case to determine whether they would support your case. Don’t assume anything about what your manager may think. Ask them questions to know their view with the aim of understanding and overcoming any objections they may have. Get clear feedback on what else you would need to do to be successful in gaining their support.
If your manager will not support you and you feel you are being treated unfairly, you may want to consider discussing this with HR.
Context
Be mindful of your company’s context. Are they financially stable? Can they afford pay increases? This doesn’t mean you shouldn’t ask if it is warranted but present your case with that context in mind. Is there an alternative compromise? For example, deferred implementation date or 2 stages increase over a longer duration?
Negotiate
Prepare your own position – what would be an acceptable / better / best increase you could hope for? Be flexible – don’t have just one number in mind!
Timing
Know your boss and when to approach her/him. Don’t go to them at particularly busy times like financial month/quarter/year-end as they won’t be able to give your discussion the time it will deserve.
Also, plan your approach only when you have sufficient evidence. Don’t start the discussion before then. You want to be fully prepared to give yourself the best chance of putting forward a strong case.
Stay Calm
If you get a negative response in the first instance, stay calm and don’t get frustrated. Getting emotional is not going to help you in a negotiation.
And finally….
Absolutely do not threaten to leave unless you really mean it. This is extremely unhelpful in negotiation and is likely to generate a defensive response. Also, if you do not leave after threatening to, it reflects on your reputation, your personal brand, and your integrity!
Be strategic and objective – research, plan and engage politely to get the best out of your negotiation.
Jean Fleming, Executive Contributor Brainz Magazine
Jean Fleming is an Empowerment and Leadership Coach helping women to create the life they want. With over 30 years of business experience, Jean was the first woman to join the Board of a global company – a role she still fulfills 12 years later.
Jean is an experienced ICF accredited Coach, a DiSC Profiler, an Emotional Intelligence EQi-2.0 Assessor, and a Fellow of the Chartered Institute of Personnel and Development (CIPD). Jean uses her extensive range of skills and experience to bring a dynamic and supportive service to her clients to help them identify and create the life they want.
