TODAY spoke with career and change leadership expert Michelle Gibbings revealed her top five tips on negotiating a pay rise. Watch the segment here.
Lots of us feel uncomfortable when asking for more money, but if you don’t ask you’re unlikely to be given more.
Asking for a pay rise can be an intimidating, brow sweating situation. But in some cases, if you don’t ask you may not get.
1. Be prepared
Know what you want and don’t be afraid to ask for it. It can be a case of ‘don’t ask – don’t get.’ Have your case clearly planned out and know why you deserve one. Know the going rates in the industry and be clear on what value you offer, and why you deserve the rise. State your wants objectively in a way that will resonate with your boss.
2. Pick your timing.
Pick your timing in three ways. Firstly, organisations often have performance and pay review cycles, so you need to know how that works. Secondly, pick a time when you know your boss is going to be receptive. Lastly, make sure you are also in the right head space. Don’t go in grumpy or tired.
3. Remain emotionally detached
Practice slowing your mind down so that it doesn’t over-react to unexpected comments or outcomes during the conversation. When you are calm and prepared, you are far better able to sell the business benefits of giving you a pay rise.
4. Find the points of leverage
If you are in the profession or trade which is in high demand, and supply of labour is low, you are in a better position to negotiate. Similarly, if you know your boss relies on you, and you have options outside staying and working for them, they’ll be more receptive to listening.
5. Know your trade-offs
Pay negotiations involve compromise. Consequently, you need to know when to push and when to yield. It’s hard to do this is you are not clear on your boundaries and priorities. For example, if you are negotiating working conditions you may be willing to trade off money for flexibility, or money for extra holidays.