For many of us, one of the topics that often tiptoes on the thin line between anxiety and excitement is the discussion of a pay rise. It’s a conversation that holds the promise of acknowledgement for your hard work, dedication, and the value you have added to your organisation. However, making the most of these discussions requires a blend of preparation, timing, and tact. Here’s our 7-step guide on how to prepare for and manage your pay rise conversation.
- Understanding Your Worth
Before you even consider approaching the subject of a pay rise with your employer, it’s essential to have a clear understanding of your worth in the marketplace.
- Market Research: Conduct some research to understand the average salary for your role within your location and industry. Websites like Glassdoor and Check-a-Salary can provide useful data.
- Skill Assessment: Think about the unique skills, experiences, and qualifications you bring to the table. How have you contributed to your team and your company’s success? Have you taken on additional responsibilities since your last salary review?
- Achievement Log: Keep a running log of your achievements, big or small. It’s easy to forget the little victories, but collectively, they paint a picture of your dedication and impact.
- Timing is Everything
Choosing the right moment to discuss a pay rise is almost as important as the discussion itself.
- Company Performance: It’s sensible to consider the financial health of your organisation. Put simply, if the business is thriving, it may be a favourable time to discuss salary adjustments. If things are looking tough, perhaps hold the conversation for another time.
- Annual Reviews: Many organisations have a set time for performance reviews and salary discussions. If your company follows this pattern, ensure your achievements are well-documented and ready to be showcased at the appropriate time.
- Post-Success: It can also be effective to broach the subject of a pay rise immediately after the completion of a successful project for you or your team or after a significant achievement for the organisation (winning a big new client, for example).
- Preparing Your Case
A well-prepared case can significantly increase your confidence when asking for a pay rise.
- Documented Achievements: Have a short summary of your achievements and contributions ready. Be prepared to explain how these have added value to the company.
- Future Contributions: Be ready to discuss your future plans within the organisation and how you intend to continue adding value.
- Training and Certifications: If you have been through further training or certifications since your last review, make sure to highlight them.
- Practicing the Conversation: Practice may not make you perfect, but it certainly can help reduce some of the anxiety you might associate with asking for a pay rise.
- Role Play: It can be helpful to practice the conversation with a friend or family member. They can provide valuable feedback and help you refine your approach.
- Professional Tone: It almost goes without saying, but maintain a professional, respectful tone throughout the discussion. Remember, it’s a business negotiation, not a personal favour you are asking for!
- D-Day – Initiating the Conversation
Now that you’ve done your homework, it’s time to introduce the conversation. Here’s how to go about it:
- Request a Formal Meeting: Don’t ambush your boss; instead, request a formal meeting to discuss your salary. It shows professionalism and gives them time to prepare as well.
- Be Direct but Tactful: Start the conversation by expressing your enthusiasm for your role and the company. Then, transition into your request for a pay rise by presenting the data you’ve collected on similar roles, your achievements and so on.
- Stay Positive and Open: Be prepared for questions, negotiations, or even a flat-out no. Stay positive, listen actively, and be open to feedback.
- Negotiation: The Art of Compromise
Negotiations are a two-way street. Skilful negotiating is a huge topic in its own right, but two key points to note are:
- Be Ready to Compromise: If a straight salary increase isn’t possible, be open to alternative benefits, like more holiday days, flexibility in your schedule, or even a title change that reflects your responsibilities.
- Consider the Whole Package: Sometimes, benefits and company perks may add more value than a straight monetary increase (especially after tax!). So, be sure to evaluate the entire salary and benefits package that’s on offer.
- Handling Rejection Gracefully
Not every pay rise request will end in a yes, and that’s okay. Here’s how to handle rejection gracefully:
- Seek Feedback: If your request is declined, ask for feedback on how you can improve and ideally, agree on a date to revisit the discussion in the future.
- Stay Professional: Thank your manager for their time and consideration. It shows maturity and professionalism, even if you don’t feel the result is the one you wanted this time.
- Planning for the Future
Regardless of the outcome, use this experience as a stepping stone for future planning.
- Set New Goals: Work with your manager to set new performance goals. It will show your commitment to growing with the company.
- Continue to Document Your Achievements: Keep documenting your achievements and any additional responsibilities you take on. It will serve you well in future negotiations.
Asking for a pay rise is a task that requires a mix of preparation, timing, and effective communication. It is also worth remembering that every pay rise discussion, whether successful or not, is a part of the learning curve that gets you closer to your goals. So, prepare well, approach with confidence, and remember that if you can demonstrate your value, you will be ideally positioned to achieve your goals.