In the workplace, your salary and benefits are the return for the service you provide to your employer. For most people, this means they want fair and equitable pay, acknowledgement of experience, and benefits that reflect a healthy work/life balance. To achieve a compensation package that matches your contribution to the company, it's likely that you will need to negotiate your salary.
Salary negotiation can be an intimidating process. There is a natural tendency to doubt your value and contribution to the company, or to be worried that your employer does not see your value in the same light you do. These are legitimate concerns, but the first step is to acknowledge it and get it out of your head.
Once you determine that you deserve a raise, don't be the fool that rushes in. Take your time to build a compelling case and proper approach.
Find the Right 'Money Moment'
You can ask for a raise at any time, but there are natural 'money moments' that are more logical for negotiating. Addressing your salary at the right time will leave a better impression with your employer than if you rush in without considering the 'big picture.'
Understand the goals of your team and the company -- being able to position yourself as an integral piece to helping them achieve their objectives increase your leverage in negotiating a raise. Also important is your company's financial calendar and current situation. If your company is nearing its financial year or quarter end and the outlook is rosy, that might be a good time to broach the subject. However, if numbers aren't great, it may be best to wait.
The New Job Opportunity
The most obvious occasion to negotiate your salary is when you're interviewing for a new job. But even if you've been with the company for years, there's still ample opportunity to negotiate salary. For example, the completion of a successful project, an increase in responsibilities, the start of a major initiative or your annual performance review are all good times to address pay.
Start early. The conversation between you and your boss is only the first step in the negotiation process. Executive decision making and budgeting take time. Plan to initiate a conversation before you are invited to attend your review. This will eliminate the excuse, "I would love to give you a raise but the budget has already been set."
Be Prepared
It isn't wise to charge into your boss' office and demand a raise. That isn't a negotiation. It becomes a stand-off and no one likes having their back against the wall. Good negotiation is creating a give and take, working together to find common goals and ensuring success for both parties. Employees often lose their negotiation power with a winner-take-all mentality.
Do your research and conduct a realistic self-assessment of your contribution and performance. Align your accomplishments with the direct success of the company and support your rationale using specific examples. Negotiations offer you the opportunity to open management's eyes to things that may have otherwise gone unseen. Be confident in your direct role towards the success of the company.
Know What You're Target Range
Resources like the salary calculator on Yahoo! HotJobs help you to determine what employers like yours pay employees like you in your city. By understanding your market value, you can set realistic expectations for your base salary and consider any trade-offs for benefits and work/life balance components of your compensation.
