People are not trained to do salary negotiations and often feel nervous about initiating the conversation. Some wait for years before asking for the raise they deserve, and others never ask for it. Instead, they wait for their managers to notice their hard work and offer them a pay increase. However, most companies will only give an increase if you ask for it. Get the salary raise you deserve by following these tips.
Every employee wants a raise, but not everyone deserves it. So before having a conversation with your manager, make sure that you can give him good reasons to grant you a pay increase. Think about the recent projects and situations where you provided real value for the company.
Did you nail the performance review? Do you exceed goals consistently? Have you grown your skills and helped the company to a big win? If you’re handling a client-facing role, do you make your customers happy and satisfied? Have you taken a greater level of responsibility? Do you have a track record of stellar performance? If your answer is yes, it is likely that your boss already knows that you deserve a salary bump and is just waiting for you to ask for it.
2. Remember that a pay raise is not a favor or a gift
Negotiating your salary may make you feel nervous, especially if it is your first time, but you shouldn’t be. Managers deal with wages all the time and know that it’s normal for employees to ask for a raise. It’s not as if you are requesting a favor from your boss. It’s simply asking him to revisit your compensation because you are now contributing more to the company.
3. Know your market value
Companies identify the pay rate of a position by doing the compensation benchmarking process. Compensation benchmarking or salary benchmarking is important because this helps organizations to ensure that their compensation schemes remain competitive within their local pay market. So how do you know what you are worth?
For example, you are a graduate of bachelor of science in computer engineering currently handling the IT consultant position. You should start by finding out how much your industry’s average pay for your position across companies in the country. If your compensation is way below what the others are receiving, you have a strong case for requesting a raise.
4. Consider your tenure
Before initiating a salary conversation, make sure that your tenure in the company was enough to prove that you are a valuable asset. It is advised that you wait for a minimum of 6 months before requesting a salary increase. Make sure to note your accomplishments during this period and how the company benefited from these contributions.
5. Pick the right place, right mood, and proper timing
One of the best times to ask for a raise is three to four months before the annual performance review. This is when the company decides the budget and allocates a certain amount for salary raises. Talking to your manager in advance will allow him time to evaluate your request and meet others responsible for salary adjustments.
Bringing up the subject of a salary increase is perhaps the most intimidating part of your pay raise journey. Evaluate your manager’s personality so you get an idea of how he likes to be approached. Remember that conversations that involve money should be made in a quiet and private place.
6. Do not limit yourself to cash
If you do not get a yes, know the reason and contemplate if such reason is within or beyond your control. If it’s because of your company’s tight finances, you can still negotiate for non-cash benefits. Try asking for perks like additional dependents in your health insurance, more vacation leaves, and access to bigger loans with zero interest. Most companies are willing to provide increased benefits in place of a higher salary.
If your manager thinks that your performance doesn’t merit a pay increase, work harder to enhance your worth at the organization. Continue increasing your knowledge in the industry and taking on broader work responsibilities. A “no” is not the end of your career but an inspiration to step up your game and get a “yes” in the future.
Asking for a salary increase from your boss or the HR department can be nerve-wracking. But if you want a raise, you have to ask for it. By follow these tips you can ensure that your hard work will reflect in your next paycheck.