Normally, after staying several years at the same company, a worker will definitely start to consider negotiating for a pay raise, not just as part of career growth but also to cope with the economy. Off course, salaries and other benefits are major reasons people work. For some companies, there is a standard procedure for promotions, which also affects pay. However, for some, you need to go ahead and negotiate with the management to get a raise. But, how do you make this negotiation in the best possible way? Read on to find out.
Have a list of reasons why you need the raise
Base your negotiations in terms of a higher salary, then link it to your overall productivity. This includes a flexible schedule, more training, a bigger role, more responsibility, working from home or even extra vacation time. Before determining what you are willing to settle for, ensure that you have clearly outlined all the things you think are necessary.
Choose the right time
If you ask for a pay raise at a bad time, you will rarely get it. The best time is during the regular pay review time, which is when most companies do it. Some contractual workers usually negotiate upon signing a new contract or at the end of the fiscal year. Otherwise, during a performance review is a good time to do it. Also, January is a bad time because of cash flow problems. A good time will be when an employee lands a very important account, which can potentially bring in a significant amount of money to the company. For example, if a sales executive is able to close a multi-million-dollar deal, that may be reason enough to negotiate a pay raise.
Know your market value
Research what other people who hold the same position in other companies in the industry are getting paid. The key is to know how much the industry is paying people who have the same job.
Don’t rush into quoting the salary
Don’t send the wrong message to your boss by rushing to name a rate. Be keen when discussing about financial issues with your boss. It is recommendable that you let your boss mention the pay rate first then you can come in later to negotiate the terms. You can request for some days to think over the offer.
Have a strong business case
You are working in a company. This means you are being paid for a value you offer. So, what value are you offering to deserve a raise? Find this out, and you have a business case. Negotiating a pay raise isn’t as easy as withdrawing money from an ATM wherein one can just input the amount and the desired amount comes out of the machine. It takes building a business case wherein one presents his specific contributions to the company and how his skills are bringing the company closer to achieving its goals.
Go for more than just money
Although money is the ultimate aim, there are other things that one can negotiate for, such as a company car or a flexible work environment, etc. Ask for these in order to reduce the focus on money.
Go through your request before submitting it
Also consider being ready with various responses in case your boss needs to know more. This will be helpful, especially if you get a straight out ‘no’ or a pushback. In order to have some hint on the barriers or questions that the boss may throw at you, consider practicing with a family member or a friend.
As long as you keep delivering positive results for your company, and continue gaining capabilities and skills on the job, negotiating a pay raise shouldn’t be a stressful matter as long as both parties are open and possess a mutual desire to keep the relationship going. It is just a matter of knowing when and how to do it.
My name is Chigozie Japhet. I am a content writer, and a brand strategist. I like writing, reading, researching and watching football, especially my team, Man United. i believe in working hard, and also in relaxation as all work without play, makes Chigozie a dull boy.
