Do you know the best way to act during the meeting?
I have been on both sides of the fence when it comes to negotiating pay rises. I have been the manager as well as the employee.
I am going to show you what I expect as a manager during a negotiation as well as what I have done to get a pay rise myself.
Are you in a strong negotiating position?
- What is your companies pay review cycle, is it the right time to ask? If your company has a standard pay review cycle, it is difficult for your manager to get an out of cycle pay rise. If you are not sure when the review is then speak with HR.
- Are you adding value to your company and can provide concrete examples?
- Have you taken on more responsibility and performed well in these new areas?
- Is your company in a good financial position? If not and they are cutting costs and jobs then it is not a good time to ask.
- Have you been at the company for more than a year? If not then expectations are that you should of negotiated a better salary at the start.
Ok, so you are in a strong position to move forward, now it is time to prepare.
Set up a 30 minute meeting in a weeks time with your manager. Ensure you state the agenda so you manager can also prepare.
Your market value
Investigate the market rate for your role, I use glassdoor.co.uk. It lets you see the average salaries of people at the company you work for across corporate title.
You will need to disclose your salary to see the average of other people who have disclosed theirs. The average salaries I saw was pretty accurate and up to date.
Note, they guarantee to keep your identity a secret, but if you do not feel comfortable, there are other sites you can use. I cannot comment on their accuracy as I have not used them.
I have also used a trusted recruitment consultant before to give me a feeler on hiring salaries.
Your sales pitch
Prepare your script with all the facts
- Examples of the value you have added and the value you can add in the future.
- What are your new responsibilities and how have you performed.
- What your commitment has been to the company.
- What you feel a realistic pay rise would be.
Present your side of the negotiation and listen to your manager’s side.
Remember to control those emotions and act professional. Your manager is assessing your negotiation skills in real-time.
If your manager agrees to a pay rise, then this is fantastic news.If the amount does not meet your realistic expectations, then do not react. A good manager will recognise your value and will try hard to meet your expectations. They are generally company wide guidelines or financial constraints to consider.Thank you manager for getting you a pay rise, state you had hoped for more and ask to review it again in the next pay review cycle.If your manager agrees that you deserve a pay rise, but is unable to do so now, can you negotiate other benefits?
- Can you get some more vacation time.
- Can you get some study time.
- Can you work from home more.
I am sure you can come up with a lot more that meet your personal circumstances.
If you manager values you, he will try and accommodate them if company policy allows.
If your manager disagrees to your pay rise, then you should understand the reasons why. Work out an action plan of what you can do to achieve one and schedule a follow up meeting.
If after the meeting you feel disgruntled and want to look for a new job, take a few days to reflect.
Is the difference between your current pay and your expectations worth leaving for?
If the answer is “yes”, check out my posts Should I quit my job quiz and Should I go contracting before you make a final decision.
If you company policy allows you should check out How to make money from side projects.
Asking for a pay rise is not easy and can be emotional. The best advice I can give is ensure the time is right, prepare well and control your emotions.
Like any meeting, your manager is always evaluating how you act. Not acting well can affect your future career as well as your pay rise.
Have you got any negotiation tips you can share in the comments below?