Table of content:
- What are good reasons to negotiate a salary increase?
- How do you negotiate a salary increase?
- How to respond if they said no?
Negotiating a salary increase is never easy, whether you are asking for more money because your company has grown, or because you want to reward yourself after the hard work you have put in over the past year(s). It is something that we have to do from time to time, and yet it is something that makes us feel insecure and nervous.
To help you get your next pay rise, in this article, we show you how to negotiate a salary increase.
What are good reasons to negotiate a salary increase?
Negotiating a salary increase requires you to be able to confidently state your worth and sell yourself to your employer. You need to be able to stand up for your value and let him know why you are valuable to his company.
Many people think that once they have been with an employer for several years, they deserve a salary increase, but this is not always the case. The amount of time you have spent at a company is not necessarily correlated with how much you deserve.
Some good reasons to negotiate a salary increase are:
- You have taken more responsibilities in your job.
- You have been in the same job for a long time and your wages have not kept up with the cost of living.
- You have a better offer from another company but still want to stay in your current job.
- You have achieved or overpassed your objectives.
- Your company got very good results and you think you deserve a part of it.
How do you negotiate a salary increase?
Negotiating a higher salary isn’t as hard as you might think. It all starts with your mindset and some preparation. If you feel like you deserve more, then you are less likely to go into the negotiation feeling defeated, and more likely to walk away with what you want.
Here are some tips to keep in mind when you negotiate a salary increase:
1. Determine your goal
First of all, you need to determine what are your needs and expectations. It is going to help you identify what are your reasonable expectations. You are going to be negotiating for yourself, not for the company.
Start by asking yourself:
- What is your current salary?
- How much would you like to earn?
- What do you want to change in your job?
- How many hours do you want to work per week?
- Do you want to get a promotion? If yes, what does that mean for you?
- Are there any things that you consider unacceptable regarding your current position?
It is important to gather this information before the meeting. It will help you stay focused on your goal and will help you stick to the key points.
2. Know the market rates
Make some research to know what other companies pay employees in similar positions. You can also ask friends or former colleagues who work in similar positions to tell you about their salaries.
3. Know what you worth and perform a realistic self-evaluation
When you want to negotiate a higher salary, it is important that you do not overdo it. Think about what you are really worth, and try to stick to that number instead of going for everything.
Make a list of your skills, what you achieved since working in this company, and what you are willing to bring in the next year(s).
4. Prepare for the negotiation
As soon as you know what your needs and expectations are, you need to prepare for the meeting. You may want to ask for feedback from your superiors, colleagues, and friends. Get as much information as possible, it will help you formulate your expectations.
You should also prepare for the meeting by practising the conversation. Think about how you’re going to present your accomplishments and why you deserve a higher salary. Make sure you have all the necessary documents like your objectives and results with you.
Write down the key points that you want to mention in the meeting.
It’s important to remember that salary negotiation is a two-way street. While you have to satisfy your employer, they also have to satisfy you. So, it is essential to make sure that you are getting what you need.
5. Be persuasive
During the negotiation meeting, you want to be as persuasive as possible. This means that you should show your employer how valuable you are to the company. Remember, they are not doing this just for your sake, they are doing it for their business. So, you need to convince them that having you is in their best interest.
6. Don’t show your hand
When it comes to salary negotiation, you want the other side to reveal their hand first. You should not tell them how much you are expecting to get first.
How to respond if they said no?
If your employer rejects your salary increase request, you need to handle it professionally and stay confident.
You first need to ask why they refused the raise as you might not be aware of everything concerning the company’s financial situation. It is possible to negotiate a raise later in the year or re-discuss the percentage.
You can also negotiate for a package and not just a salary. A package includes your salary, benefits, your bonuses, vacation time, and any other perks you can receive.
Your employer maybe won’t agree to give you a rise, but she/he might be willing to renegotiate your bonuses or any other benefits like meal vouchers or sports memberships.
Did you try to negotiate a salary increase and your current employer refused it? If you are looking for another job, our recruiters can help you find the perfect one for you with the salary you think you deserve.
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As professionals in recruitment since 2013, LHC International can help you find the right position or the right candidates for your company.