Congrats, the recession is over and you still have your job! You deserve kudos for working hard through the bleakest of times. But then again, is your paycheck going to be fatter when the pay hikes are announced?
The thought of negotiating a salary hike brings anxious moments to most professionals. It’s not the most pleasant of tasks but nonetheless a very important one.
Most of us work hard with the hope that our best efforts will be recognized and rewarded when the appraisal season arrives. However, this is easier said than done. There are many complicated twists in the plot and these may involve interpersonal relationships, jealous co-workers and peers, troublesome bosses, or a partisan management. Negotiating a pay hike really means getting past all of these hurdles and getting that hike. If you deserve it, you must get it.
Be bold – it’s your money
Often, the biggest mistake that many people – men and women alike – make is not negotiating because they’re scared of the process. If the offer is low, they decline it. If it is halfway decent, they accept it. After accepting the job, they find they are underpaid and this frustrates them. Starting off on the wrong foot can cost you much more than you think. Equip yourself with negotiation skills and start smart.
Listen for the right management messages
Some company managements may announce a salary freeze. However, note that even companies that have laid off employees have saved enough money to pay deserving employees who have contributed to steering the company through rough weather. Take a good, unbiased look at your company’s performance record and determine for yourself if the company’s claims are indeed true. If your company is being honest, consider sticking on and braving the odds. If you think your company is being dishonest, have a straightforward talk with your boss or consider a change of job.
Go prepared
It’s not enough to be armed with information, you must also know how to use it to plan your moves. Go fully prepared to a salary review meeting. Put your job description and your last few performance appraisals in perspective. Be confident and assertive without being aggressive. Present your ideas for change and walk away with a deal.
Talk results, not money
Between you and your reviewer, the first one to bring up money loses the plot. It makes sense to go into your compensation review meeting fully armed. Your arsenal must consist of records of your own success and accomplishments and how they have made a difference to the company. If your job role does not directly impact the bottom-line, pick select initiatives that have saved your department or unit money and time, and how you have helped streamline processes and bring in efficiency.
If not money, what else?
Sometimes, managements will not budge from their decision not to pay more money. In such situations, negotiate for benefits or perquisites. The elements of your pay package includes salary, job duties, hours of work, benefits, time off, educational opportunities, etc. If your reviewer stonewalls your requests for more money with a polite sorry, you may want to negotiate other aspects such as telecommuting options, more vacation time, etc.
First jobs and new jobs
These tips will help both first-timers and experienced employees to talk their way to a salary they deserve.
- Do your research and analyze competitor salaries for your role before you go to the meeting
- Always discuss salary only after you have received your offer letter
- Let your employer broach the subject of salary
- Instead of quoting a figure, ask what salary ranges your employer works with and then use your research to negotiate
- Never compromise below your minimum salary expectation
- Be positive and market yourself favorably
- If you have held a previous job, do not disclose your past salary
- Be courteous and friendly. You must be perceived as firm and confident but never unpleasant.
- Don’t say yes right away. Ask for time, even if it is a few hours.
- If you must decline an offer, make sure you leave the door open for yourself in the future.
Share
