There's a right way and a wrong way. Once you find the right way, stick with it!
In all of the cases illustrated below, the two parties are identified as follows:
E = Employee S = Supervisor
CASE 1. GETTING AN ACCEPTABLE SALARY INCREASE
The Wrong Way
E: Say, Mr. S, can we get together? I'd like to discuss getting a raise.
S: Sure, why not? Come into my office now.
E: I haven't had a raise for a year. How about it? Aren't I past due?
S: It just so happens your raise is in the works, and you'll get it next month.
E: That's great! Now I have something to look forward to!
{Critique: So what went wrong? She got a raise! But she didn't bother finding out how much it was, nor was she prepared to negotiate to increase the amount if it was inadequate.)
The Negotiated Way
(The Preliminary)
E: Mr. S, at your convenience, I would like to discuss with you something of importance to both of us.
S: What is it?
E: I'd rather not discuss it out in the open because it's a private matter. If you could set up a time that is convenient to you, I'd appreciate it. It shouldn't take more than 15 minutes.
S: How about 3 o'clock this afternoon in my office?
E: Thank you, that would be fine.
(The meeting)
E: Mr. S, I haven't had an increase in salary in quite a while. Up to now, I was getting raises on an annual basis, but it has been more than a year since my last one. What's going on?
S: As you are aware, E, the company's profits have been down and the immediate future doesn't look too bright. As a result, the interval between raises has been extended.
E: As you know, I've been a loyal employee. But if the company is in such a predicament, perhaps it's risky to remain here. Don't misunderstand me, I want to stay with the company for many years to come, but I expect some recognition and remuneration in return.
S: You know I've been satisfied with you. In fact, I put you in for a raise, but it has been delayed along with the others. Let me see if I can get salary administration to expedite its approval. I'll get back to you as soon as I can.
E: Before we break off this meeting, can you give me an indication of how much of a raise I can expect and when it will be in my paycheck?
S: Sure, the increase is for $X, and it will be included in your paycheck one month from the time of approval.
E: But, Mr. S, that increase is less than the cost-of-living increase for the year. I feel I deserve more based on my record.
S: What amount did you have in mind?
E: (E is prepared with an acceptable salary range and now cites the top figure. He also provides backup by referring to his activity log book, which shows outstanding job performance and other positive factors.)
S: I must admit that I wasn't aware of all the outstanding things you've done over the past year, and I certainly don't want to lose you. I'll tell you what I'll do: I'll try to bump your raise up to $ Y. Is that satisfactory?
E: That's better, but it still falls $Z short of what I'd consider satisfactory. (Even though $Y falls within the bottom of the acceptable salary range, E tries a higher counteroffer.)
S: In that case, I think perhaps we may have to delay your raise until the next scheduled review. If you wait another few months, we may be able to get you a little more than $ Y, but I can't guarantee it!
E: (Thinking to himself: I had better quit while I'm ahead. A bird in the hand is worth two in the bush. Get that raise now, and plan for a better one in the future.) Although I believe-and it looks as though you recognize-that I deserve a larger raise, in consideration of the company's dilemma I'll accept the $ Y raise for now. Thank you in advance for any future efforts to provide more adequate increases! I certainly will be in there pitching to get the company over the hurdle. Please let me know when I can help and how.
S: Thank you for your consideration and cooperation. Keep up the good work, and together with the top-notch efforts of the other managers, we will help the company get over this tough time.
(Critique: In this example, the first offer is shown not to be the final one. Some employees believe a supervisor's offer is locked into one number, regardless of a company's financial position. Often, it is intimidating for an employee to make a counteroffer, especially if he or she likes the job and plans to stay for a long time. Nevertheless, there is always an opportunity to negotiate, particularly if done cooperatively without creating friction.)
CASE 2. GETTING A RAISE BEFORE IT'S DUE
The Wrong Way
E: Ms. S, this inflation is killing me: fuel prices keep rising, the cost of electricity is up, and the damn taxes just rose another 10 percent. I need a raise just to meet these increases.
S: I would like to give you a raise, but my departmental budget won't permit it. You've been here long enough to know that raises are given only on an annual basis.
E: I figured that would be your answer, but I decided to take a chance and ask you anyway!
(Critique: E was unprepared for the meeting (he should have been ready to argue his worth to the company) and gave up too soon.)
The Negotiated Way
E: In the six months since my last salary review, I have taken over the responsibilities of Mr. X as well as retaining my own duties. Since he left the department, you turned over his accounts to me. While this additional work is challenging and I enjoy it, I believe it warrants additional compensation.
S: I certainly appreciate your taking on a bigger workload and the satisfactory performance you continue to demonstrate. But there is no money available for raises at this time.
E: Nevertheless, as we are both aware, Ms. S, the company's revenues and profits are up sharply from last year. I feel that my work contributed to these increases and that a raise is justifiable for me at this time.
S: You've been here long enough to know that the company's policy is to award raises only once a year, and we're only halfway through that period.
E: But we both know that policies can be bent. Suppose someone decides to leave? Wouldn't management provide an interim raise to keep a good worker? Don't get me wrong. I don't want to leave. I like it here and enjoy my work.
S: Well, we could make an exception for a special case, but yours is not unusual.
E: Isn't it a special case if an employee is not being paid in accordance with what he is contributing? My workload has increased immensely, and I've taken on the additional responsibilities without griping. I know I'm doing an excellent job, and I'm sure the company and especially you want to continue to treat me fairly.
S: Others in our department are contributing more than what is expected of their positions, and they're satisfied; they aren't asking for raises.
E: (At this point, the activity log is displayed and thumbed through.) I'm sure that you can be proud of your department's output, but I cannot speak for others. The extra work I've undertaken imposes more responsibilities for additional skills and requires devoting spare time to study things more carefully.
S: I guess I haven't fully realized the situation and its impact on your workload. Give me some time to talk it over with salary administration to see whether there's a chance of getting an interim raise for you. I'll get back to you within the week.
E: Thank you, Ms. S, I appreciate your consideration.
(The next meeting, a week later)
S: I'm pleased to inform you that you are being considered for a promotion and, of course, an accompanying raise within the normal review period. But in appreciation of your excellent performance, I have stressed to salary administration that you have earned a raise and they concurred to grant an interim increase of $X. I hope this is satisfactory.
E: I really am pleased, especially in looking forward to that promotion! Thank you, Ms. S!
(Critique: The supervisor was forced to reveal that a promotion was being considered. Gaining an interim raise on top of a coming promotion certainly was a coup. Also, the employee did not require an extensive effort to convince his boss of the outstanding performance. Probably the activity log helped to promote the interim raise.)
CASE 3. NEGOTIATING THE RAISE ACCOMPANYING A PROMOTION
The Wrong Way
S: I thought that getting the promotion you've been promised would please you. And the increase in salary is indeed commensurate with the new title. I can't understand why you're not satisfied. What salary would you be happy with?
E: I'm making $XX,XXX now and would have expected at least a 10 percent increase.
S: Well, a 6 percent increase is standard policy with any promotion in this company. You do want this promotion, don't you?
E: Sure I do! Oh, well, I guess I'd better be satisfied with the regular increase.
(Critique: E gave in too easily and did not show confidence in her own worth.)
The Negotiated Way
S: I thought getting the promotion you've been promised would please you. And the increase in salary is indeed commensurate with the new title. I can't understand why you're not satisfied. What salary would you be happy with?
E: I think you can understand better than anyone else, what raise should accompany a promotion-certainly not one that is just equal to a merit raise. I request that you reconsider what may be suitable.
S: I think you should consider the promotion and not be too concerned with salary. After all, the promotion does place you in another bracket and provides you with a broader salary range and chances for more raises!
E: Certainly you are right, but I don't want to wait another year until the next merit review before getting another raise. I would feel cheated by losing out on a whole year's difference in salary.
S: I hate to think how grumpy you may be until next year when salary review occurs again. Of course, you realize that you wouldn't have gotten this promotion unless I thought you had earned it. So let's hear what salary would satisfy you.
E: Before getting back to the salary, I'd like to know more about my new job responsibilities. Tell me more about how the departmental structure will change and who will report to me. Also, what are some of your plans for the growth of our department in the near and far future?
S: The main objective this coming year is to increase the number of subcontracts and purchase orders we process. For this reason, we are computerizing and automating the issuance of requests for quotations and purchase orders. Some of the people who are your peers in your current position will be reporting to you. You will be performing some of my duties, relieving me of those responsibilities and giving me time to plan the expansion and reorganization of the department.
E: It all sounds great. But let me return to the subject at hand. In the new position, what is the salary range? And, will the frequency of salary reviews be the same as in my current position?
S: Your performance will be appraised and your salary reviewed annually. If you are performing as well as you are doing now, there's no reason not to expect annual increases. As for the range, it has been established by salary administration and falls between $XX,XXX and $XY,YYY But let me point out that, if you had an MBA, your starting salary for the new position could be on the higher, not the lower, end of the scale.
E: Apparently you're not convinced that I've been doing more than just a satisfactory job. Let's take a moment to review what I've accomplished since the last performance appraisal. (E's activity log is presented and reviewed; her outstanding accomplishments are emphasized.) According to my job performance, I think you might agree that the salary should be toward midrange. Certainly my qualifications and accomplishments warrant a better increase than 6 percent.
S: But you don't have an advanced degree, and you must be trained for the new position. The company will provide you with training on company time; that's a major concession.
E: Well, I haven't brought you completely up-to-date on my background. As for the MBA, I expect to complete my studies and be awarded a degree next year. Also, in my spare time, I have been attending various workshops and seminars under the auspices of the NCMA that cover contractual matters.
S: Well, as I said, the company has established $XX,XXX as the starting level for the new position, but let me advise salary administration of your additional qualifications, of which I must admit I was unaware. I'll get back to you later this week.
E: I know that I may have put you in a difficult position, and I do appreciate your efforts. I certainly can wait a week for your response. Thank you.
S: Okay, see you then.
(A phone call two days later)
S: Would it be satisfactory to you if we started you at $XX,XXX with the agreement that you will receive an increase at a level closer to your expectations after a six-month trial period?
E: That sounds fair enough. Thank you.
(Critique: This case exemplifies a salary offer-and-counter offer procedure. Note that E was aware of what constituted a more acceptable percentage for a raise accompanying a promotion. She had done her homework and was prepared to defend her worth. In contrast, S did not prepare adequately and he was unaware of E's pursuit of education. After all, S had been approving company-sponsored tuition-reimbursement checks for E's graduate work for a number of years and should have found out just what E was doing. As E pointed out, the additional training received outside of working hours would be cost-effective in that the company need not conduct a training program for the new job, and E's time could be spent more productively.)
