If you’re comfortable in your job in Trinidad and Tobago and happy to work for your employer, it makes sense not to ‘rock the boat’ with a salary increase request. Sadly, this is the attitude of too many employees, and it costs them a fortune. The sooner you learn to negotiate a raise, the easier it becomes in your career, and the faster you’ll earn what you desire.
If you ask for and receive, a $5,000 per annum increase near the beginning of your career, you’ll earn several hundred thousand dollars more in total. This is because you immediately increase your base earnings and set the stage for more lucrative salaries later on. Let’s start this guide by looking at simple salary negotiation tips.
1 – RESEARCH THE MARKET
For some reason, the most basic advice is often forgotten, and this is certainly the case with salary negotiations. How do you think things will go if you waltz in and pull a number from your backside? Find out the average pay for your job and take note of skills and experience.
2 – SHOW YOUR WORTH
It’s all fine and well to dive into the conversation by saying you want a 10 percent raise; but what have you done to earn it? Learn more about the issues your organization is facing and provide solutions to these problems. For example, if the company values reliability, you can mention the detailed work diary you keep which outlines what you achieved in any given week along with information about your next project.
If you’re really serious about showing your worth, go the extra mile by creating a proposal document. It should show specific areas within the organization where you can add value. Before you even mention a salary increase in the negotiations, show the manager your document.
3 – EMBRACE FAILURE & CAPITALIZE ON IT
When it comes to discussing the amount you want, always aim high; just not so high as to be ridiculous! Let’s say you want a 7 percent raise, begin by asking for a 10-12 percent raise and expect the manager to reject the proposal. The next step is to lower your demands slightly and if you’re confident enough and have shown your value, you should receive the increase you want.
4 – PRACTICE MAKES PERFECT
Even if you’ve prepared your proposal document and you ‘feel’ ready, it is important to get plenty of practice in first. The most conscientious employee can get tongue-tied during a salary negotiation if they have never had one before. Avoid this unfortunate fate by practicing with a friend or family member. Another great idea is to try bargaining with market sellers or people on eBay! Here are a few pre-prepared scenarios:
• How Much Are You Looking For? You should know your position’s asking rate and go slightly above it.
• We Can’t Afford It! Don’t accept this as fact because most companies just use this as a scare tactic. If it’s in your power, outline potential budget cuts that could pay for your salary increase.
• How Much Are You On Now? Your employer wants to know if you’re earning the industry average. If you’re not, they will want to know why you’re lagging behind. If you are, they will want to know why they should pay you more.
5 – DON’T FORGET OTHER BENEFITS
A basic salary increase is only one part of the compensation package. For example, you could convince your manager to allow you to work from home. Other perks worth negotiating include extra vacation days, an improved company car and stock options.
When asking for more money and better benefits, outline how they will benefit the organization. For example, working from home will lead to greater productivity and a higher standard of work. Make your case, try to sweeten the deal from their perspective and then keep quiet and allow them to speak!
THINGS TO CONSIDER
1 – HOW STRONG IS YOUR NEGOTIATING POSITION?
While everyone would love to storm into their manager’s office and demand a pay rise, how likely is it that you’ll get laughed out of the room? Have you already added value to the company in the past? If so, can you prove it? This may involve creating another document; this time outlining your achievements to date.
If you have gained widespread praise from senior members of staff; this will only strengthen your negotiating position. On the other hand, if you’re struggling to become a standout performer, your best course of action is to improve your performance and then look for a salary increase.
2 – WHAT WILL YOU ACCEPT?
As well as having an upper range, it is imperative to cement a minimum expectation. If you’re offered something below that amount, will you take it? If not, are you prepared to resign and look elsewhere for the salary you desire?
3 – GETTING YOUR TIMING RIGHT
Although it’s always a great time to ask for a raise from your perspective, it isn’t always the case for the employer. Good times to ask for an increase in your salary include:
• Immediately after a work anniversary.
• After you’ve successfully handled more responsibilities for several months.
• During your annual performance review. This is arguably the best time (as long as you’ve performed well) because your manager is willing to discuss career development and your future at the organization.
• When the company enjoys an excellent quarter or year as evidenced in its annual or quarterly profit forecasts.
THE ART OF NEGOTIATION
The vast majority of employees have much to learn about how to negotiate and what they can negotiate. Did you know that items such as rent, credit cards, gym membership, cell phone plans and even car insurance are all negotiable in the real world? If you never negotiate with these companies, now is the time to start as it will give you the practice you need to walk into your manager’s office and get the raise you deserve.
As long as you make the request in a calm and non-confrontational manner, the worst answer you’ll get is ‘no.’ Even in this case, at least you’ve laid the groundwork and let your manager know where you stand. A ‘no’ can easily become a ‘yes’ in a few months. Finally, never threaten the manager to get your way. If you are thinking of threatening to quit be sure to take into account that there are certain things to consider before you resign because, what will you do if the manager calls your bluff?
