Does your salary accurately
reflect your responsibilities, experience level and recent performance? If it
doesn’t, below are some key tips to help you successfully negotiate a salary
increase from your present employer.
1. Identify the right negotiating partner
In case you have any doubts at all, the right partner when it comes to
asking for a raise is your direct boss. No ambiguity about it. Not the Head of
HR (unless he/she is your direct boss), not your boss's boss, not the top brass
at the company you work for, just your direct boss. Bypass your direct boss and
you not only jeopardize your chances of success at negotiating a raise but also
your potential longevity at the firm.
2. Get the timing right
Did you get a substantial raise after much negotiation as recently as 6-9 months
ago? Then question the wisdom of asking again so soon. Has your performance or
your team's been on the wane lately? Is the company suffering a profitability
downturn or going through a period of stringent cost-cutting? Has your boss
recently had a hard time ing the costs of his department? Then perhaps
this is not the right time. No harm trying of course but be aware that the best
time for negotiating an increase is after a period of consistently stellar
performance.
3. Do your homework
Planning and preparation is key to the success of any negotiation. Know the
terrain and where you stand relative to peers in the company and industry.
Research salary ranges on the internet, look at advertised job postings, talk to
friends and peers in the industry and tune into the industry rumor mills to
determine your actual worth. Arm yourself with the maximum amount of information
on what others doing a similar job are making so you can make a strong case for
the figure you are targeting.
4. Base your request on clear and objective criteria
Base your request for a raise on a set of clear and objective criteria that
include industry salary standards and your recent performance. In addition to
determining what your actual "fair and equitable" market worth is based on
industry standards, be clear about the value of your recent contributions to the
firm in terms of increased revenues and productivity, resources saved,
initiatives taken, processes improved etc. Be prepared to walk your boss through
your recent successes and accomplishments and gather all the documentation you
need to support your cause.
5. Be clear about the strength of your negotiating position
Be very clear about how strong your negotiating position is. At certain times
certain positions or departments are less in favor than others. It may be that
your whole division is being held up to close scrutiny due to poor performance
or that your own recent performance has been found wanting. It may be that the
whole industry is going through a downswing or your own role in the company o r
industry is becoming increasingly redundant. Having no illusions about your
bargaining position will enable you to plan your negotiations optimally.
6. Define your goals
Never walk in to a negotiation without a clear and well supported set of
objectives in sight. Define the exact raise you are aiming for and don't be
afraid to aim as high as you can without being too unrealistic. There is a
strong correlation between results and aspirations so shoot for the moon. Going
in to a negotiation targeting an undefined, unspecific raise is not an advisable
or potentially prolific strategy.
7. Give yourself leeway to maneuver
Whatever raise you are aiming for, start the conversation with a figure well
above that and be prepared to negotiate back to a figure closer to your minimum
acceptable raise. Leave yourself plenty of leeway to give in and compromise
without having to be priced out of your target range.
8. Be creative
Benefits, bonuses and perks can account for a substantial component of total pay
so be creative in pre-determining the types of final packages you are willing to
accept. With companies increasingly opting for performance-based bonuses as a
big chunk of total pay, engineer your acceptable options accordingly. It may be
that you are willing to negotiate for a lower increase in base salary in return
for a hefty performance-based bonus and/or other perks such as more paid time
off, a sports club membership, higher car or housing allowances, children's
school tuition, more training etc. Perhaps a new title will compensate for the
financial ground the employer is not able to cover in the negotiation. Have a
range of scenarios prepared and present your employer with a wide range of
options to show you are flexible and open for discussion.
9. Aim for win-win
In order for your negotiations to be effective, realize that both you and your
boss need to walk away from the table feeling you have gained. Make sure your
boss is aware of what the company is getting in return for the package you are
commanding. Ask your boss if you can take on more responsibility or redefine
your role to the raise. Perhaps you can work on the next exciting
project or take a training course to broaden your skills and expand the
boundaries of your role. Ask your boss for suggestions on what added
responsibilities you can assume to further the raise.
10. Negotiate face-to-face
There is no substitute for face-to-face discussions when seeking a pay rise, so
avoid trying to have the discussion over the phone or worse, by email. A salary
negotiation is often a lengthy process and chances are that it will be abruptly
cut short, and against your interests, if conducted in an impersonal manner and
in the absence all the non-verbal cues that facilitate effective face-to-face
negotiation.
11. Prepare yourself for all possible scenarios
Anticipate all the concerns and possible objections your employer may have and
prepare an adequate response for all possible scenarios. Concerns may include
the fact that your department is downsizing, the fact that the company is going
through a period of retrenchment, the fact that you are already overpaid for
your role in the company or only recently got a raise etc. Remember that your
boss will also most probably have to answer to several people to your
raise.
12. Listen
Don't feel pressurized to do all the talking as that will only alienate your
boss and probably lead you to making unnecessary concessions. Listen to what
your boss has to say and make every effort to understand where he is coming from
and what his needs and concerns are so that you can try to tailor potential
solutions accordingly. Your boss will feel much better knowing you are an act
ive partner in the process and that his input and opinions are valued and
respected.
13. Turn on the charm
No reason to be hostile just because you are sitting across the table from
someone whose agenda is not identical to yours. Step up the charm and be polite,
courteous and respectful at all times. Chose a tone that conveys you are seeking
to work together in a collaborative manner to find a mutually agreeable,
synergistic solution. This will disarm your boss and take you a lot further than
an argumentative confrontational posture.
14. Don't get emotional
Emotions have no place at the negotiating table. In a professional environment
keep the tone professional, the arguments objective and the end goal clearly in
sight. Don't take conflicting goals, disagreements or strong rebuttals
personally; instead be prepared with logical rational arguments that address
every eventuality. Tears, tantrums and thoughtless tirades will only work
against you.
15. Don't burn bridges
Remember that at the end of the day you will still have to work for your boss so
avoid saying anything you may later regret. Even if you decide to quit the job
after an obviously unsuccessful negotiation process you will need reference
letters and may well cross paths with your boss again in your future career.
16. Don't fabricate
Outright lies and exaggerations or fabricating the data you use to support your
request for a raise will usually be found out and are almost certain to
backfire. Make sure all data points and arguments you use are accurate and can
be substantiated. Employers don't want a dishonest employee so aim to sell
yourself by highlighting your strengths and maximizing your present and future
value to the firm.
17. Avoid an ultimatum
Employers don't take well to ultimatums so issue one at your own peril. Much as
we hate to admit it most of us are quite dispensable to our employers and
confronting them with a threat to quit if negotiations don't go precisely as per
plan may well find ourselves replaced with people who are less abrasive and more
politically adept at the negotiating table.
18. Get it in writing
Whatever the terms reached at the negotiating table get it in writing with the
right signatures so that there is no question of commitment and no room for
ambiguity or retreat.
19. Take your time
Don't be pressured into making a hasty decision. Request time to think over the
final terms offered, validate any new data your boss may have thrown your way
and get comfortable with the offer and its implications. You can always revisit
the terms armed with a new set of information and a more realistic or
accommodative agenda.
20. Facilitate the next steps
Make it easy for your boss to get buy-in from the chain of command. Give him all
the supportive documentation he needs to make a solid case for your raise to his
management whether it be details of your performance over the past 6 months,
descriptions of the special projects you have been involved with, a synopsis of
your plan to boost profits over the next 6 months, a description of your new
increased responsibilities etc.