Asking for a salary increase can be a difficult conversation for many people. Regardless of the seniority of your role, talking about money and asking for more can feel confronting. That conversation can feel even more awkward when you know the economic climate is challenging for your employer. Often in these circumstances, people choose to remain silent about their dissatisfaction with their remuneration. But continuing to work in a role where you feel underpaid is unsustainable. Put simp
imply, if you believe you are not being paid at a level that is a fair reflection of your contribution, your engagement and commitment to the organisation are likely to be impacted.
All too often, people choose to leave the organisation they work for in pursuit of higher income, and in doing so miss the opportunity to explore whether their current employer is willing and able to meet their pay expectations. If not immediately, over a reasonable period of time.
Put your hand up
Regardless of the economic climate, if you believe a salary review is reasonable, ask for one. As the age-old saying goes, ‘If you don’t ask you don’t get’. If a salary increase is what you want, speak up and let your direct report leader know you would like to have that conversation.
While of course it’s ideal that your employer drives the process of ensuring you receive fair compensation, if they fail to, for whatever reason, don’t be hesitant in coming forward. Do something before you feel totally undervalued and aggrieved.
Be clear about what you are asking for
Know what you ideally want before commencing negotiations. Have a clear view of not only what you believe you should be paid but also why. Simply saying you want or need more money to live isn’t enough to convince most employers of the need to give you a raise.
Most people who argue for a salary increase on the basis of the rising cost of living do so with the unconscious intention of sending a signal that ‘I’m only asking because I need to’. Unfortunately, this approach tends to have the opposite impact on how the organisation perceives the reasonableness of the request. While your employer may empathise, it’s not what’s going to get them to pay more.
Understand the value of your role and contribution
Form realistic expectations of your earning potential by doing your research. For example, speak to recruiters about their understanding of the market value of your role. Tap into freely available salary surveys, such as those published by many of the large executive search firms. Talk to peers in your industry.
When it comes to comparing your income with peers, a word of caution: Not everyone will be entirely honest about what they earn, and of course they may not feel comfortable sharing that information with you. The best way to get confident about your market data is having multiple sources to compare.
Have reasonable expectations
There’s no point going into a salary negotiation kidding yourself about what you can expect to earn in your role. Understand that there is a ceiling to what any employer will pay for a particular role in your industry. Face the reality that you may need to earn a promotion to increase your income.
Consider the standard of your performance and extent to which you are delivering the level of contribution of which you are capable. In other words, you are going to be in a much stronger negotiation position if you have clear evidence of the results you have achieved, and the difference you’ve made to the organisation’s success.
Consider also how you compare with your peers, inside and outside of your organisation. In many senior leadership roles, the market range can be very broad. Where your pay falls within that range will depend on the knowledge, skills and experience you have to offer.
Ask yourself, ‘Has the depth of my experience, strength of my capabilities or level of my contribution grown over time?’ If so, that justifies an increase in remuneration. If you are unsure, ask for feedback so you can better understand how your employer sees your worth to the business.
Argue with reason
Like any negotiation process, you are more likely to achieve the outcome you want if you are perceived as being fair and reasonable. Among the most important things you can do to influence that perception is to keep emotion out of your discussion and focus on why you believe an increase of your remuneration is justified.
Remember also that regardless of the market value of your role, and the standard of your contribution, the reality is your employer’s capacity to pay is an important consideration in deciding how you approach the negotiation process.
Understand that your employer may not be in a financial position at the time to adjust salaries or go all the way to meeting your expectations in one step. Demonstrating that you understand and appreciate the economic circumstances that your employer is operating in might affect the likelihood of them staying at the negotiation table.
Empathy in any context has a powerful disarming impact on most reasonable people. This can be especially important if you are working in the small-business sector. Many small retailers struggle to earn a salary, and in many instances paying higher salaries means taking home less themselves.
Be open to exploring incremental changes that can be made over a period of time. If the ultimate answer is no, negotiate a point in the foreseeable future when your employer is willing to look at it again. In summary, be calm, rational and patient. Hold reasonable expectations and be open to reaching alternative yet mutually agreeable solutions.
This story first appeared in the August 2023 issue of Inside Retail Australia Magazine.