Top tips when negotiating a pay rise

It’s never easy approaching your boss to discuss a pay rise. Most people avoid it hoping their boss will instead come to them about increasing their package. This rarely happens.

The main reasons people avoid initiating a negotiation are:

• They’re afraid and embarrassed to hear “no”

• They don’t know how to approach or structure the conversation

• They’re unsure of how much to ask for

With the right planning, strategy and mindset you can start tackling these negotiations confidently and earning the remuneration you deserve.

Here are some of my top tips when asking for a pay rise:

1. Planning

Most of the work for a negotiation is done before you actually speak with the other person. It is so important to make sure you have all of the relevant information as knowledge is key. Ensure the salary you’re requesting is fair and on par with industry averages (check out Payscale or Business NSW), have a clear idea of what you are asking for (base salary, super, bonus structure plus any additional benefits specific to your role), and collate some data and examples of the value and contribution you’ve made to the business (particularly outside of your job description). You need to show justification of why you deserve the pay rise.

2. Strategy

Negotiations don’t always go to plan so make sure you’ve created a strategy to help guide the conversation towards achieving the outcome you want. In addition to the plan above, have some other creative ways to achieve a remuneration package you want. It isn’t just about base salary and bonuses. Look at other elements which are important to you and would give you the balance you want, and include those in the conversation (such as flexible working hours, remote working, training and courses the company fund). I recommend starting the negotiation at the top or higher end of what you’re looking for and be VERY clear on what your bottom line is.

3. Timing

This is a critical element to a successful outcome in a negotiation. Don’t ever surprise your boss with a conversation about a pay rise. Much like you need to do some planning, respectfully, so will your boss. You both want go into the conversation knowing what you’ll be discussing and prepared for that conversation. I would suggest allocating at least 30 mins (up to 60 mins), preferably do it in person otherwise a video call and schedule it for a time when you’re both focused on it (ie not end of month if that’s a busy day in the business, or right before a management meeting). This is a very important conversation and you don’t want it to be unsuccessful purely because the timing was wrong.

Keep these tips in mind next time you’re preparing to ask your boss for a pay rise as they will help guide you towards achieving the outcome you want and negotiating successfully.

If you need some personalised help with an upcoming negotiation, or ready to invest in your future and learnt to negotiate successfully today please get in touch as I’d love to work with. Contact me at kate@katelalak.com and we can organise a convenient time to have a chat.