How to Negotiate a Salary Increase
Asking for a salary increase can be uncomfortable, whilst you may believe you are worth more than you are currently earning financially, it is always better to approach your employer asking for a pay rise from a position of strength.
That means you should have the data beforehand and have done the research to backup that you are worth more. Use your achievements and the value you add to the organisation to form the basis of your negotiation. This way you will be better prepared and be in a much stronger position to secure an increase, the company needs to see how you have impacted their bottom line or how you add value to their business.
If you have not had a successful year and are going to ask for the increase be prepared for an awkward conversation.
An increase in salary or ‘package’ can take a variety of forms, from a moderate salary increase or bonuses to more non-financial based rewards such as increased holiday, further studies support, flexibility in hours, parking or private medical care.
Before asking for a salary increase you need to do some preparation to show evidence that you are delivering more than others and that your key strengths are invaluable. A pay rise will be based on both your current performance and your guaranteed future performance, not just on what you say you will do. Here’s some points to consider before setting up a meeting:
• Do a background check, look at competitors and other companies job adverts in the area and compare what they are paying employees at the same level as you. If it is less that you currently earn you may have a weaker case.
• List your successes whilst you have been in the role i.e. financial achievements – sales made or savings made and show how you have impacted the bottom line through efficiencies. Have statistics or data to hand which are solid evidence that can easily be checked.
• List any change in duties or responsibilities since you joined the role from the initial job description you had when joining the company.
• Be realistic in what increase you ask for in line with the marketplace and colleagues around you and be open to negotiation.
• Be professional, keep the conversation private and confidential and don’t discuss it before or after with colleagues, this will lead to further issues within the business. If you want to be taken seriously by the business and seen as an asset, trust is an important quality.
• If your employer refuses your request, think about alternative options in advance such as an increase in responsibilities request to push you to the next salary level. Ask for a further review on certain targets being met in 3 or 6 months’ time or an increase in benefits and holidays.