Plead your case
It may be difficult to convince your boss for a better compensation. If you ask him curtly to raise the package, you may spoil your working relationship with him. Try to build a case by telling him politely and persuasively that by paying him more will benefit the company as well.
Aim high, and be realistic
It is proved that there is a correlation between people's aspirations and the results they get from negotiations. Suggest only such ideas to which your boss realistically reacts to give his nod for your plea.
Have the right tone
Give hints that you are not averse to your boss's viewpoint. You tell him that you appreciate him if gives due weight to your point of view and discuss the issue amicably. Avoid giving ultimatums.
Explain your needs
Instead of asking for a straight raise, explain why you want a better compensation. Tell him about your needs. Make it clear that you have other options to a salary hike like profit sharing, stock options that vest immediately, bonus, greater responsibilities, a quicker promotion schedule, vacation or flexible working hours.
Preempt your boss's objections
Anticipate what your boss would say to your pleadings and then build your case. You can tell him that you understand his concerns and speak to him in such a manner that he will accept your request.
Joint brainstorming
Joint brainstorming is the best method to reach an agreement. Talk about common solutions and then select the one that takes care of concerns of both sides.
Focus on objective criteria
You can easily win over your boss if you base your proposal on objective criteria. You can tell him what other companies pay its employees in a similar situation as that of yours.
Backup plan
You must have a backup plan if you fail to convince your boss. Part of the plan should focus on what you would do if you have to walk away from the table.
Thoughtful preparation
Before you start your negotiations, spend time on thinking of all aspects of your negotiations and their consequences, only then you will have the advantage of these tips.
Learn a lesson
You can improve your negotiation skills when you learn a lesson from your experience. After the negotiations, reflect on what you did well and how to do better next time.
