Too many people are uncomfortable asking for a salary increase when they have an offer in front of them or when discussing it with their current manager. And the biggest reason for this is FEAR. But our advice is not let the fear stop you. Think about what you can bring to the table, be confident, and ask for your value.
MOST COMMON REASONS FOR SALARY NEGOTIATIONS
There are different reasons why you should ask for a salary raise.
Increased value added
During your time at the company, you have gained more responsibilities that were not discussed in your job. Your seniority increased, you have contributed more to the team, and maybe you even started to manage a team.
Your personal situation has changed since you joined the company. Perhaps you started your own family and have higher costs of living.
Your costs of living have increased due to inflation. After the evaluation of your expenses, your quality of life has been decreasing.
WHEN IS THE RIGHT TIMING
Is timing important when it comes to salary increase negotiations? Yes.
1) Generally, it is not advisable to ask for a salary increase if you have been with a company for six months (or even up to 12 months). You need to build your impact first.
2) You can address the topic during your annual performance review with your manager.
3) Review the company policies: some organizations have internal policies when it is the right time in a year for salary increases, and what are the rules and conditions for getting a salary increase
Never wait for a raise: if you want it, ask for it.
HOW TO PREPARE FOR SALARY NEGOTIATIONS?
Before the conversation with your manager, build your case. That is how you reduce the chances of your manager saying NO.
Prepare the data of your impact: people like numbers, and when you show your impact and value-added presented, your manager will more likely see your contribution to the team and company.
Have a number in your mind of wanted salary increase
Before the conversation, do market research:
2) Network: ask people from your industry about it; for instance, you can write to people on LinkedIn or discuss it with your Marketing Mentors in a free 1:1 mentoring session.
YOUR MANAGER SAYS NO
In an ideal situation, your manager says "yes" to your salary increase request. But your manager can say "no". What to do in this situation?
Do not take it personally.
If the company says no, consider if this "no" means “not right now”.
Think from the company’s perspective: is there room for the company to pay you more? If the organization is not in the best financial situation, it is normal not to offer salary increases.
You need to understand how the company is making money and bring new ideas on how to boost its revenue flow.
Understand the feedback and be proactive.
Think about grey areas and suggest other solutions that could work for you. You need to be transparent about what you need.
Here are some ideas for other solutions:
One-time bonus (based on your or the company's performance)
Option of remote work (the same salary but allowing remote work and you can move to another area)
Working fewer hours (e.g. 4 days per week)
Based on the feedback and flexibility of your manager, you have to decide what you want.
You can decide to stay with the company and wait for a better time to receive a salary increase. If not, then you can start looking for new opportunities.
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If you are interested in discovering more about this topic, watch our webinar How to Negotiate your Salary. It is available on YouTube.
To receive a piece of advice firsthand, schedule a free mentoring session with a mentor of your choice from our platform. The mentors will be happy to talk about their experience in salary negotiation and share more helpful advice for your discussion with a manager. Schedule here.