The following is an excerpt from our guide “Compensation Negotiation: Your Complete Guide”
If you’re satisfied with your current company and role, but not you compensation, you may decide to negotiate a pay raise rather than seek out new employment. Depending on the current situation at your organization, this may or may not yield the results you’re hoping for, but either way, it’s best to go into these negotiations with a strategy.
Why You Deserve a Raise
Almost all employees believe they deserve better compensation, but why they deserve this may not be fully apparent to their employers. If you want to get a raise, you’ll have to convince your employer that your value is higher than it was during your last pay period. You also need to show that you have plans that will continue to bring value to the company going forward.
You can prepare this ahead of time y keeping a file of the achievements and accolades you have received in real-time. It will help you recall your contributions in your role. It can also serve as a way to gain perspective when you are having a bad day!
Some newly acquired traits that might be useful to point out to your employer when requesting a raise include:
- Special skills or talents
- Job achievements that deserve a raise or promotion
- Degree, credentials, or designations
- New talents or skills acquired
Personal life events, such as buying a new house, expecting a baby, or debt are not acceptable reasons to request a raise. Come to the negotiation table with tangible results and contributions, and you’ll convince your employer that you truly deserve higher compensation.
Ask At The Right Time
One of the most important things to consider when asking your employer for a raise is timing. First of all, you should schedule a meeting with your superiors and let them know what the meeting will be about so that they can prepare. The best time to re-negotiate salary is right after you’ve completed a successful project or after a glowing performance review.
It’s highly unadvisable to surprise your employer with a compensation negotiation meeting. Other less desirable times to attempt a salary re-negotiation would be after the release of negative financial forecasts, prior to a board meeting, or during a company re-structure. If you plan out the timing and reasoning, you’ll likely be successful in your raise request.
Do Your Homework
How much are you worth to your employer? Why are you worth that amount? Go into the re-negotiation with thorough research and evidence so that you know what you’ll be asking for and why you deserve to be asking for it. Use the resources mentioned at the beginning of this guide to help.
Practice presenting the reasons you should get a raise as you would be for an interview - using sound bite stories with notable figures and testimonials from your achievements, customers, coworkers, or superiors.
Whatever you do, do no go into a salary re-negotiation underprepared. This could lead to your termination or damage your reputation.
Much like preparing for an interview, practice can help you prepare for your compensation re-negotiation. Knowing what you want to say and doing so in a succinct professional style, will allow you to be confident during your raise discussions. After you’ve figured out your raise request and you pitch content, practice in front of a mirror, record yourself or practice with a friend. Get ready for any questions or objections the employer may have as well.
Keep An Open mind
Even if your employers aren’t able to offer you a higher salary, they may be able to provide other benefits or perks. Additional vacation days, long-term bonuses, etc are possible counteroffers they may provide. Come into the negotiation with these things in mind and bring them up if it seems like your raise requests will no be feasible.
If your employer turns down your request, stay positive and thank them for their time. Try to find out why your request was denied. If it was due to a lack of budget, you can request a follow-up at the time of the next budget review. If the motivation is performance-related, then strive to work on improving to certify your requests will be fruitful next time.
Download “Compensation Negotiation: Your Complete Guide” here.