Negotiating a salary increase is something that many people don’t enjoy doing. However if you want to be paid what you’re truly worth, sometimes it’s necessary to pursue that a little more aggressively than you might be used to.
In the US, the average salary increase is around 3-4%, and this is usually considered as a cost-of-living increase. If you think your performance warrants an increase on top of that, you’ll need to spend some time preparing your case—most employers won’t give you more money without a good reason, particularly if the economy is poor.
Before you ask for that increase, you must be clear on why you want it, and why you think you deserve it. In addition, you must decide whether or not this is a make-or-break issue for you—do you plan to seek other employment if you don’t get the salary increase you want?
Preparing your case is made much easier if you’ve taken the time to track your performance over the previous year.
When you accomplish something important, such as increasing sales in your department or finishing an important project or achieving a company goal, note it down. Then when it comes time for that salary review, you’ve already got a good list of “evidence” for your case. Including anecdotal evidence can be useful, too. This might include the results of customer evaluations, and praise from management or peers.
Using salary calculators to determine the current market rate for your skills is another important aspect of making your case. Salary calculators use factors such as your geographical location and your qualifications to determine how much your skills and experience are worth. When you actually get to the review meeting it’s always best to have a firm figure in mind. Once you’ve determined the current market rate and completed the rest of your preparation, you’ll have a good idea of what percentage you want to ask for.
If you end up in a situation where your employer simply refuses to agree to the raise you ask for, and you still want to continue working with the company, ask if you can review issue in six months. However, make sure that your employer does not see this subsequent review as a replacement for your next annual review.
Alternatively, consider negotiating for other benefits instead of an increase in salary. This might include more vacation time, more flexibility in your work hours, or other perks.
Still Stuck? Try using the “The Job Interview Secret”
Also, please review our Free Interview Tips section.