How to negotiate a pay rise

Negotiating a pay rise can be difficult and maybe even awkward. Concepta Cadogan, Director at Lincoln Recruitment Specialists, outlines nine tips to make the process easier and get you closer to that bigger pay packet

The art of salary negotiation is a crucial career skill that will stay with you throughout your working life. 

To succeed during a salary negotiation, you will need a little preparation, rehearsal and correct positioning to ask for and receive the pay you deserve.

Most companies will have a standard annual pay rise for all employees to cope with inflation, but what do you do if you think you are worth more? 

We’ve put together some tips for when you want to ask your employer for an increase but can’t decide what is the best way to go about it. 

Good preparation and research

Benchmark yourself. Look at fellow employees and people in other organisations doing similar jobs. How do you compare? 

Benchmark your role

This should be based on similar roles in your firm and against market rates. 

Suppose you work in a fairly structured area such as accounting. In that case, this is as simple as looking at job boards and comparing your salary against others advertised but remember to use companies of similar size and in the same location as yours. 

Decide what you feel is fair

Once you have seen what the market is paying, set a top rate and a bottom rate that you think are a fair reflection of your value to the organisation and that you’d be happy to accept.

Don’t just focus on the money

Is only money important to you, or would you prefer shorter hours, training opportunities, flexible working or a promotion? 

If your firm cannot offer more money, it may be more amenable to non-cash benefits that would increase your total package but would cost it little or nothing to provide.

Put together your business case

Treat your salary negotiation like any other pitch you make in your job. 

Put together a compelling argument as to why you are worth investing in. Think about how your job has developed, where you have contributed above and beyond your pay grade and how it makes sense for the company to reward you. 

Practise arguing your case several times in front of a mirror and then on someone else. Ask them to judge whether it makes sense and if it is compelling.

Get your timing right

If you march into your line manager’s office and demand an increase when they have assembled a complex budget, you may get a less favourable reception than you’d want. 
Alternatively, the upcoming company-wide pay round or your appraisal meeting are perfect opportunities to speak with them and put your case.

Keep your cool

Negotiating a pay increase is a stressful and emotional time. From your point of view, you aren’t being valued enough, but there is a possibility that from your employer’s standpoint, times are hard, and the last thing it needs is staff unrest. 

Try to focus on the facts wherever you can, and don’t take the results personally.

Be ready to negotiate

Any manager worth their salt will come back with a counteroffer. If it’s not what you want, ask for time to consider it (it doesn’t hurt to let them stew a bit!) and decide if you want to stand your ground.

Get it in writing

Finally, once an agreement has been reached, ensure you get a letter stating what you have agreed. 

If your manager is too busy, write it yourself and let them know that you are doing this to ensure that both sides understand what was actually agreed.

By being professional and organised, you can prove to your employer that you are worth investing time and money in and by following our tips, you should get the desired result.