Knowing How to Negotiate a Raise
9 July 2015
Read by 3027 persons
1-Choosing the right time
The annual review is a fairly natural opportunity to discuss salary with your manager. The year's achievements have just been assessed, the objectives for the future have been set, and so the question of financial compensation for this work comes quite logically. However, waiting for a different time of year, such as a job change or the acquisition of new skills, also allows you to better highlight your particular case. In general, any achievement that goes beyond your assigned task can be an opportunity (exceeding set objectives, obtaining a major contract, or resolving a critical problem).
2- Determining the amount to ask for
A golden rule: remain realistic. This requires some prior research into company practices and constant monitoring of salaries in your sector and profession, taking into account, of course, the various salary supplements you receive. Then, it's all a question of strategy. As in any negotiation, you need to ask for more to get what you want. Allowing your manager the possibility of lowering your demands helps to turn the exchange into a "win-win" agreement.
3- Highlighting the right arguments
Asking for a raise is above all about knowing how to sell your work and skills. Don't hesitate to detail what you have done and achieved, as well as the professional and managerial skills you have developed, with supporting figures (savings made, increased notoriety, time saved on processes, improvement of performance ratios...). In general, it is a question of presenting the raise you are asking for as an investment by the company. The message to convey is "Look, I've worked hard. If you invest a little more in me, I'll go even further."
4- Mistakes to avoid
Emotional arguments should be used with discernment. Avoid putting forward arguments that do not directly concern the company, such as moving house or the arrival of a new child. Another pitfall to avoid: justifying your request by the discrepancy between your own situation and that of your colleagues, which would amount to trying to sell yourself by discrediting others. Similarly, the argument of seniority in the company is no longer a relevant argument today. Favor arguments that highlight cooperation between the company and yourself. Emphasize your experience, specifying that you have regularly updated your skills.
A raise should not be claimed as a right but as a reward for a significant contribution.
5- Creating the conditions for a good negotiation
To improve your chances, it is best to pay particular attention to the negotiation framework. Choose the right time, taking into account your manager's state of mind, even if, if you see them stressed or in a bad mood, you postpone the meeting. The tone during the interview should never be aggressive but should remain determined. Don't look for conflict, without appearing weak. Show that you have carefully considered the issue before discussing it. Finally, avoid appearing too rigid so as not to block the negotiation. Putting too much pressure on the result beforehand does not allow you to approach the interview in favorable and serene psychological conditions.
6- Knowing how to respond to objections
A commonly raised objection to a request for a raise is the poor health of the company. Even if it is considered unfounded, it is difficult to challenge it. However, if your results justify it and your position allows it, you can highlight the fact that you can contribute to the company's recovery.
As for the objection of the rigidity of the salary scale or the envelope allocated to increases, it is essential to anticipate it by highlighting the added value of your contribution. Failing that, it is possible to consider other forms of remuneration such as benefits in kind. Thinking before the interview about an alternative that matters a lot to you and little to the company allows you to emerge victorious from a poorly started negotiation.
7- Reacting well in case of refusal
If, despite everything, the answer remains negative, or at least below your expectations, remain professional, especially if your hierarchical level is high. If the decision seems particularly unjustified, it is always possible to knock on other doors, such as that of your N+2 for example, but this approach should be used with caution and should only be used if things have become very heated, beyond the issue of the raise.
The resignation card should also be played with caution. Your manager might take you at your word and, if you don't want to leave, your collaboration could become particularly difficult. In this case, a calm attitude is necessary. If your manager announces a refusal, prefer a phrase like "I take note" which commits you to nothing and forces your manager to reflect on its underlying meaning.
Finally, if, despite all your efforts and a difficult negotiation, you do not get your way, look on the bright side. You will have gained additional experience and therefore an opportunity to learn. This should not prevent you from investigating the causes of this failure in order to bounce back better next time. Moreover, it will be a strong signal sent to your manager... with a view to a new negotiation in the future.
Philippe Montant CEO ExeKutive.biz
