Negotiating appropriately for a pay rise can work out more successfully than you may think. In fact personally marketing yourself can show your employer that you are great at bargaining, ambitious and potentially destined for greater roles. Here are ten tips to help nail the meeting and get that pay rise.
1. Know the company policy
Find out what the company policy is for salary review. If it is after being employed for 12 months, then save your pitch for then. Or alternatively the company may look at pay rises at the end of the financial year. The timing of your pitch can make or break your success.
2. Speak to the right person
Speak to the person who will make the decision. This may be the manager of your manager. If you give your pitch to a HR assistant they may not pass on all of your argument and crucial points onto the right person, which will affect your result.
3. Understand the market rate
When you present your case for a pay rise you should understand what the current market rate is for similar roles and how your salary compares. Your research should include jobs in similar companies and industries. When making your comparison you will need to take into account factors which will influence the salary level, such as location, level of experience and size of the company. Don’t forget to also take into account what the package includes, for example does it include Superannuation, a bonus scheme or other extras such as a car?
4. Document your achievements and contributions to the business
Make a note of all of your achievements and contributions to the business and in particular take note of any special mentions, awards or commendations you’ve been awarded during your employment. These are all arguments to show your value as an employee and the worth you provide for the business. This involves talking about not just your tasks and abilities but how these contribute to the business as a whole.
5. Be ready for a tough discussion and don’t take the first offer
If you ask for a 15% raise and you are offered a 5%, don’t be scared to politely refuse and ask for reconsideration. If you are a valued employee, a well-argued case for reconsideration will be given more thought.1
6. Pitch with the business interests in mind
A request for a rise will be determined on two points: whether you deserve the raise and if the business has performed well. Look at your pitch from the business point of view and not just your own financial situation. What benefit do you bring to the business?
7. Book a meeting
Book a meeting with the person you need to speak to, so that you have a dedicated section of their time. This avoids catching the senior person off guard or at a bad time or when they are distracted by other duties.
8. Don’t threaten to leave without another job lined up
It can hurt your credibility if you threaten to leave for another job if your request for a raise is not successful and you don’t actually have another role to go to. If you are unsuccessful in seeking a raise and you are not satisfied with the reasoning, maybe it’s time to take a look around at other opportunities. But claiming to have another offer before you do, may prove embarrassing.
9. Get the outcome in writing
Some people remember the outcome of a meeting differently. If a raise amount or a final outcome is made and agreed upon, then ask for this to be sent to you in writing after the meeting as confirmation.
10. Be professional
A discussion about pay is a sensitive issue, and sets a tone for future opportunities with the company. If you conduct yourself in a professional manner and make your pitch without too many unreasonable demands, you’re more likely to get what you want.
While it might seem daunting, asking for a pay rise may be easier than you think and can actually help your career. Conducting yourself professionally will bring out the best results, so take our above tips on board to prepare for the meeting.
- 10 tips for getting a raise, The Australian Financial Review
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.