FYI Magazine
Negotiating a salary increase
- Created on Friday, 13 January 2017 00:11
- Published on Friday, 13 January 2017 00:11
- Hits: 2751
For most of today's workers, simply having a job is something to be grateful for. With an unemployment rate still hovering around nine percent in the U.S. and roughly 7.6 percent in Canada and the United Kingdom, it's hard to question workers who are simply content to be among the gainfully employed.
For some, however, the need to start gaining more is growing. In the past, yearly salary increases were normal. However, in recent years salaries have begun to flatline, at least for lower- or middle-income workers. A study commissioned by and published in The New York Times earlier this year found that the median pay for top executives at the country's largest companies in
2010 was $11 million, a figure that's 23 percent higher than the previous year. However, the Bureau of Labor Statistics noted the average American's weekly pay in the fourth quarter of 2010 was just 0.5 percent higher than the year before. In addition, a UK-based think tank called the Resolution Foundation warned low- and middle-income workers that their pay will flatline until 2015.
For some, the prospect of working without the prospect of a pay raise is difficult to fathom. Many workers who managed to keep their jobs during the recession took on more work as a result and could feel the time for financial recognition has come. To those hoping to negotiate a salary increase, consider the following approach.
- Do your homework. Workers might feel they have a firm grip on their value in the marketplace, but that's not always the case. If necessary, consult an executive search firm to determine your true worth. Employees who have been with the same company for several years are often pleasantly surprised to learn their value in the marketplace. When researching your value, examine compensation surveys and utilize resources such as newspaper classified sections or online job boards. This will paint an accurate picture of what the job market is like and some job postings will even include compensation package information.
- Consider adding more responsibility. Simply put, the more valuable you are to your company the more likely they are to meet your salary demands. Pursue any ways you can become more valuable to your company before discussing a salary increase. Propose ideas on new projects or offer to help other departments when possible. Many of today's companies are understaffed because of the struggling economy. The more hats you can wear for your company, the more valuable you will be and the more likely you can receive a raise.
- Don't be afraid. A growing mentality among today's workers is to simply be happy to have a job. While that's understandable in light of high unemployment rates across the globe, that attitude won't help you get a raise and should not keep you from requesting one. Employers recognize the cost of hiring and training your replacement is likely substantially more than meeting your salary demands, especially if you have been with the company for years. If you have truly earned a raise, don't be afraid to ask for one.
- Don't be threatening. Some workers feel they must present their employer with an ultimatum when requesting a raise. Terms like "or else" or "if I don't get a raise" should never be brought up in a salary negotiation. If the company truly cannot afford to meet your salary demand, you will have painted yourself into a difficult position. What's more, the company likely won't respond well to threats and might deny your request simply because of that. When negotiating a salary increase, be assertive but non-threatening. If the company can't meet your salary demands, they might offer other benefits, such as an extra week of vacation or the opportunity to work from home a few days a week. Such offers are far less likely, however, if your tone is threatening.
- Be specific. It doesn't hurt to be specific, both with a figure and a timeframe you expect to hear a decision. If you're open-ended, you're likely to get less money (and appear ungrateful or unhappy if you then request more) and the company might take its time considering the request.