The conversation around motivating for a salary increase or improved compensation can be nerve-wracking and can give employees anxiety.
However, it is essential to get over fears surrounding the money conversation, to ensure that your value and contribution is fairly recognised and rewarded, according to Advaita Naidoo, Africa MD, Jack Hammer Global, an executive search firm.
Naidoo said: “The first step you must take, is to get over your fear of having the conversation. Particularly in the current economic climate, where budgets are tighter than ever before, the fear of rejection looms large.”
“But accepting the potential for rejection right from the start, making peace with it, and entering the negotiating room with alternative options, will ensure that regardless of outcome, you will be in a better position than before.”
Naidoo said that it is in the best interest of your employer to ensure your contribution is recognised and fairly compensated, just as much as it is in your own interest.
“It is therefore important to have an open two-way discussion, where the needs and constraints of both parties are disclosed.
“This approach will help minimise tension and open the door to a positive, mutually-beneficial outcome.”
Naidoo offers advice for those who are seeking an improved compensation package:
Understand your value
It is important to know and articulate the value you bring to your organisation. This involves:
– detailing your accomplishments
– quantifying your impact
– demonstrating how your work benefits the company.
Be thoroughly prepared
Proper preparation is key to successful salary negotiations.
Being prepared means researching industry standards, practising your talking points as well as anticipating potential questions and counter-arguments.
You could try roleplaying with a trusted friend or colleague to build your confidence and composure.
Think of alternatives
You may find yourself in the situation where your company legitimately is not able to accommodate a salary increase at the moment, due to financial constraints.
Therefore you should approach the negotiating table with alternatives which your employer will be able to accommodate.
Other incentives including: performance-related bonuses, extra stipends for further studies, or project-based incentives could add value to the company. Another option could be flexible working conditions.
Providing your organisation with potential solutions that are doable and will benefit both you and the company.
“Alternative solutions are particularly relevant when navigating salary increase negotiations within larger corporations. It's essential to understand the structural constraints that often come into play,” Naidoo said.
“In many cases, the overall increase pot is pre-determined and must be distributed among a larger number of employees. This can significantly limit the wiggle room available for individual salary adjustments.”
Approach the negotiations carefully
Heightened emotions can cloud judgment during negotiations therefore it is essential to take a clinical approach.
Focusing on the specific value you bring your employer and the solutions that benefit both parties. You could propose creative solutions that are valuable to you but don’t cost the company a lot of money.
Manage your rejection constructively
It is important that you are prepared for your request to be turned down. If you are rejected, remain calm and seek clarity.
Then ask for specific feedback on what you need to do to earn a raise and under what circumstances an increase might be available.
With this approach you can have an understanding of the perspective of the company which can lead to a clearer path forward.
IOL Business