How to Negotiate a Pay Raise

A company has several ways of recognizing the work of its employees. For employees, negotiating for a higher salary is one of the most crucial skills they need in their careers. This skill requires professionalism and self-assurance in your value to your company. 

Ahead, we will explain the steps you can follow to negotiate a pay raise successfully.

1. Research Salary Data For Your Position

Before discussing a raise, you should do your homework. You need to know about the average salary range or your position and your experience level. First, you could ask your colleagues in similar posts or have a similar experience how much they make. 

Second, you can do research online to figure out the average salary for your job and location. For example, you can search through a Salary Comparison Tool. The tool allows you to calculate the average salary range based on your industry, location, and work experience. The Salary Comparison Tool is updated annually to reflect current industry trends and average salaries in the current market. 

Third, you can take your research to a higher level by simply talking to experts. It could be someone in your industry or a recruitment consultant who can give you the latest updates. 

2. Understand The Company Success

To prepare for the negotiation, be sure to study your company’s financial data and performance during the last few quarters. In doing this, you will weigh things out – whether or not your organization is growing. A company experiencing sluggish growth may not be in a position to offer salary increases. 

This research will also influence the actual negotiation process. For instance, if your company is growing, the rate of growth is slow, you might consider aiming for a lower raise. If your company is rising more quickly, you might aim for a higher increase. 

3. What Did Your Performance Account For?

The most effective means to convince your boss that you deserve a raise is to tell them about your accomplishments that helped the company achieve its goals. It would help if you showed that the value to the organization is worth your decision to negotiate a pay raise. You may also grab the opportunity to discuss the raise when your team asks you to perform additional responsibilities or roles. If you are being asked to perform additional responsibilities, it may also be time to ask for a promotion.

4. Decide On Your Target Range For The Increase

You should remember that convincing your employer that you deserve the raise is just the beginning. Prepare to discuss the actual amount of that raise, so you need to set a realistic range.

The raise should start with the lowest amount you would be satisfied with and end with the highest amount that is reasonable enough. If your employer agrees, you will use this range to negotiate the amount. 

Likewise, identify other benefits you are willing to accept instead of the raise. Sometimes, employers are hesitant to increase your salary but are still willing to offer you different benefits.

5. Prepare Your Presentation

When you are already meeting with your boss, get ready with a convincing story. As mentioned above, you should connect that to your accomplishments as much as possible. It is helpful to organize all of your points in the form of a presentation or sales pitch.

6. Practice 

Request a friend or family member to practice the negotiation before the actual meeting. If possible, pick someone with similar experience or in a management position so that they can provide positive feedback about your plan. 

7. Schedule Your Meeting

For the last step, you should take note of the proper timing because it is imperative when you negotiate a pay raise. Getting it right lets you deal while your employer is in the best possible mood. It will increase the probability of receiving a nod from your employer and receiving the amount you hoped for.