How to get a better than Average Raise
Salary negotiation during your annual job review, can be a difficult task particularly as it's in your employers best interest to pay you what they think fit rather than what you are worth. This article seeks to examine some basic tips to give you the upper hand in salary negotiation to ensure you get that better than average raise.
Always turn down the first offer
This needs to be done diplomatically. When your company offer you a raise, thank them for the offer and stress how much you enjoy your job, but explain that you need to think it over. Speak to them the following morning and explain that whilst you like the job and the organisation the amount offered was a little lower than expected. Tell them that if they make a final improved offer that you will be pleased to stay with the firm.
This works like a charm and I've seen people get up to $4,000 more on their basic salary for politely turning down the first offer made to them.
Provide Evidence of Market Rates
Usually employers make a salary offer based on what they think you are worth to their organisation. If you want to get an improved salary you need to demonstrate that what you are asking for is not unreasonable and is the going market rate. Visit an online job search site like www.monster.com and check out what other people doing your job are being paid by other companies. Print off this information and take it with you to salary negotiations to evidence your claims.
Be Persistent
During salary negotiations ask your employer on at least three occasions for the salary you want, don't give up if they turn you down after the first attempt. Research shows that asking three times communicates the importance of something to you and your employer may be willing to give into your demands.
Ask for a salary you stand little chance of getting
This is an excellent negotiation strategy. Start by asking for a salary level that you stand little chance of getting but be persistent so that your employer believes that you want this. When this is turned down proceed to the salary level that you do really want. The chances of you getting that salary are much higher because your employer will feel that they need to concede something to you in return for them having declined your first request.
Stage negotiations in a hot office
If you have the opportunity to arrange where salary negotiations take place then aim to find a hot office or turn the air conditioning off in that room. It's proven that negotiations are resolved more quickly when the environment is more uncomfortable. You employer will be willing to concede to your demands more quickly if they are desperate to get out of a hot office.
Ensure a third party minutes the negotiations
This is essential as minutes are a formal record of what has occurred. If you manage to agree an salary but it hasn't been documented it's much easier for an employer to go back on their promises. Whilst minuting the meeting won't make it legally binding in a contractual sense, most managers are unlikely to go back on written agreements without losing face.
Appeal at the highest level
If you have put together a good business case justification for getting additional salary, which gets turned down, then appeal to a higher manager. Keep appealing if you continue to get turned down until you get to the top. There are people who have forced changes to the way companies consider salary levels, which has directly benefited not only themselves, but other employees. A word of caution about this strategy. Only do it if you have a good case for arguing for additional salary. Don't just do it for the sake of it. Whilst senior managers will be impressed by a good argument, they will equally be unimpressed by a poor one that lacks sufficient evidence to support its conclusions.
Read Recruitment Magazines in the office
If you are already in employment and are approaching a salary renegotiation period start taking recruitment magazines into work with you and reading them during your lunch break in the office. Ideally circle a few jobs similar to your own and leave that page open on your desk. I guarantee that word will soon spread that you are keeping a look out for a new job. When it comes to your turn to negotiate salary you will have put yourself in a strong position with management to get an improved basic wage.
Offer your resignation as a last resort
This strategy should only be used as a last resort where you feel that you are totally under valued and there is a good prospect of getting another job elsewhere if you have to. It is a high risk strategy. If you can't agree on a salary wait a few days and tender your resignation and make it clear that it is linked to the company's unwillingness to meet your demands. If they value you it is likely they will reach a suitable compromise, if not then do you really want to work for a company that doesn't understand your true value?
