Every professional will need to negotiate their salary at least once during their career. This article will provide you with all the tips to navigate asking your boss for a pay rise to ensure the most successful possible outcome.
1. Understand Your Value in the Open Market
Undertaking market research is critical to getting the best outcome when having a salary discussion with your employer. Before initiating a salary conversation with your employer, ensure you undertake your market research to benchmark your current value within the open market. As part of your market research, consider the following:
- Review salary benchmarks. Specialist recruiters publish salary guides annually, which is a great guide to benchmark your remuneration in the market
- Speak to your industry colleagues. Ask them what their remuneration package is and what other benefits their organisation provides i.e. Extra week of annual leave
- Ask a specialist recruiter for their insights, including what salary and benefits you could expect if considering an external position.
2. Understand the Value You Bring to the Organisation
It’s easy for your direct report to get caught up in their own responsibilities and lose sight of the value you bring to the organisation. If your employer does not notice the value you bring to the organisation, it is important for you to bring this to their attention in a respectful way. Make a list of the value you bring to the organisation, which can include:
- Increasing business revenue by 20% in the last 12 months
- Mentored two juniors who have since been promoted
- Ran an internal project i.e. CRM transition
- Introduced a new process which increased productivity by 10% across the business.
Undertaking this preparation will show your manager you are serious about your salary review and help your manager to understand the value you bring to the organisation.
3. Be Professional and Direct
When you approach your manager, be clear and confident about your request. Organise a meeting with your manager and make sure your manager is aware that the meeting is to discuss your performance including your remuneration.
Most importantly, make sure this meeting is an open discussion, rather than a demand. In other words, don’t ‘put a gun to your manager’s head’ and demand a salary increase. Provide factual information including the value you have brought to the organisation, and show proof of salary benchmarking. This will provide your manager evidence to support your case for a salary increase. This keeps the conversation positive and focused on facts rather than emotions.
It is important to make your manager aware of all the reasons why you enjoy working at your current organisation, and you are only seeking to be paid what you are worth in the market and to the organisation.
4. Time it Right
Make a professional assessment of when you ask for a performance and remuneration review. Timing can be the difference between a ‘yes’ and a ‘not now.’ Ensure you consider the following factors:
- The company’s performance. If the company has reported strong financials, it may be a great time to ask for a review
- When you are scheduled for your annual performance reviews. If your company conducts formal performance evaluations, use this opportunity to request a salary review
- After a substantial achievement. This can include successfully finishing a project or assisting with the acquisition of another business
- If you have been promoted. A promotion should come with a pay rise, although if it does not, make sure you have a salary review with your manager.
Make it as easy as possible for your manager to increase your salary in line with your expectations by ensuring the timing is right.
5. Be Prepared for Any Outcome
Do your best to eliminate your emotions from the outcome. Do not have a knee-jerk reaction if your performance and remuneration review is not in line with your expectations. Take 24-48 hours to digest the outcome, before determining your next direction.
If your employer does not offer you a pay rise according to your expectations, ask your manager, for my salary to increase by X, what do I need to do to achieve this?
Research, preparation, and professionalism are key to ensuring the best possible successful outcome. Negotiating your salary is not only about earning more, but it is also about ensuring your compensation reflects your value to the organisation and the open market.
If your salary review is not in line with your expectations, and you have decided to seek a new opportunity, please feel free to contact us via LinkedIn, on 0434 943 647, or email us at enquiries@rivarecruitment.com.au for a confidential discussion.
RIVA Recruitment specialises in financial services recruitment across Australia. If you are seeking a new employee for your business or you are seeking an new employment opportunity, please feel free to contact us.
