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How to negotiate a salary increase

Most employers have a good knowledge of how salaries compare between companies.

The best time to ensure you are properly compensated is when you join a company, because, once you have started work, it is difficult to get major salary increases beyond inflation, except when you receive a promotion.

This is especially true in medium to large organisations which invariably award pay rises against a performance review. Such companies have a structure and policy which determine rises and prevent ad hoc subjective increases.

In these companies managers are often given a pool of money to distribute as they see fit, so it’s particularly important that you excel at your job, so your manager can justify awarding you more than the next person. Otherwise, he or she can find themselves in a position of having to rob Peter to pay Paul – which psychologically can prevent the manager from doing so.

Furthermore, many corporate organisations require a chain of sign-offs. So it’s important to understand that in-house policies will determine whether your approach for a rise is realistic or not!

However, if you believe you genuinely deserve to negotiate for a higher salary you should:

Ask at the right time!

Timing is important – consider the time of year when salaries are reviewed, and research your company’s performance to see if increases are affordable!
If, as a result of this, you are confident that you should be considered for a pay rise then you should apply for it straight away. Conversely, if you don't feel justified in applying for a rise just yet, consider behaving as a model employee for six weeks or so first.
By this I mean getting in early, having a well organised, clear desk, demonstrating a good attitude, being helpful and happy – making sure you're someone who’s good to be around.
Try for the rise when your manager has had time to recognise that your performance has been strong – after you have delivered good results, for example, or completed a successful project…

Research your value to your employer:
How much are you worth?

To find out look for some benchmarks, for instance the range of compensation packages applicable to your field.

• Check job advertisements, find out from recruitment consultants what is the going rate and range.
• Look up salary surveys via the internet or professional and trade associations. And consult fellow workers.
• Analyse how your efforts are contributing to company success, and consider your experience in relation to your peer group. Look around to see who else has your attributes, and who could replace you!
• Assess what level of salary increase you deserve.
• Keep in mind that your personal needs or financial commitments should not be a factor in your application. Financial pressures of your family, mortgage, debts or other outgoings are unlikely to influence any decision.

Arrange an appointment with your superior

State your reason for the meeting.
Consider convenience factors like time and place, and avoid potential interruptions.

• Prepare your presentation for maximum impact.
• Document your value to the organisation.
• Highlight your past achievements and contributions to company success.
• Rehearse and rehearse until you are word perfect.
• Be prepared for possible rebuttals, and have your response/s ready.

Your conduct at the meeting

• Create the right impression; ensure you are dressed appropriately.
• Project a friendly and confident manner, and give particulars on what you enjoy about your work.
• Give your presentation firmly and in a measured manner.
• Allow for possible interruptions, such as requests for clarifications.
• State your expected salary/compensation package.
• Outline how much you think you are worth and in what ways you will earn the extra salary reward.
• If your expectation is rebuffed, be prepared to negotiate.
• Should you fail to get what you want, it is fine to express disappointment but, unless you want to make it a resigning issue, don’t burn your bridges.
• Suggest that your employer thinks it over, and arrange another meeting in the near future or at some predetermined time, say three to six months.
• If appropriate, offer to undergo extra training or ask for advice on how you could perform even better.

Follow up if unsuccessful

• Document your continuing successes for future negotiations.
• Take on additional responsibilities; go the extra mile to further your cause.