Negotiate a Higher Salary
Companies - our employers - have dual obligations: maximize shareholder value and provide a good working environment for employees. How they balance these two sometimes competing objectives is unique in each situation.
But those of us who have worked in corporations know that almost everything is negotiable for those who ask. It is true that you could work at a lower pay than your colleague simply because you didn't ask. It is also true that you could be working at a higher salary simply because you asked.
But it's not just about asking, is it? That's part - maybe the most important part - but it's not everything.
Keeping in mind that your boss has dual allegiences: minimize costs for the company (and your salary is a cost) and maximize profits (which come from people). So the solution is to understand the dynamics your boss is facing and plan accordingly.
At this point it's good to say that there are limits. You can't necessarily have whatever you ask for. There are ranges for certain skillsets. At some point you'll hit a cap no matter how persuasive you are.
But there are some things you can do:
1. Know the market. Be aware of what your skills would pay in other companies in your geographical area. Be honest when you review the typical pay for others who have the same job in your industry.
2. Know your value. Understand how what you do contributes to the bottom line for your company. If you work in a large company, you may need to understand the role your department or division plays. Make sure you have an unbiased opinion of how your performance on the job contributes to the company's objectives.
3. Practice. Know your talking points in advance. It's better not to read from a piece of paper when talking to your boss about a raise. Memorize what you would say - maybe three key points at the most - and be comfortable saying it even if you get interrupted or distracted.
4. Be professional. This should not be an emotional conversation, but one based on facts and numbers as much as possible.
5. Know the time. There definitely is a right time and also a wrong time for this conversation.
6. Be willing to listen, maybe willing to wait, maybe willing to compromise. Don't be locked in on a certain idea. Maybe your boss will give you feedback about what you should do. So the answer could be "no" this time, but you may have an open door for what you can do to improve your chances next time.
7. Whatever happens, be all-in. Be 100% committed to your company. If the answer is "no" this does not mean you work less. You never know what may be in the works in the background. Many an employee has killed the chances of a promotion when it was being reviewed but not discussed openly.
8. There is a time to walk away. Some companies will just not meet your expectations. This is not a step to take lightly, but after you have done all you can do, sometimes you just have to move on to advance in your career.
These steps will help you be thorough and not rushed when thinking through this very important decision.
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3800941