Want To Earn More Money? How To Negotiate A Raise
While undergoing my first annual review at work, and subsequently receiving a significant promotion and raise, I realized I was totally unprepared to negotiate. Not only was I unprepared, I was incredibly intimidated by the process.
I am not alone in this. According to Lisa Gates of Ask The Negotiators, the career advice section of themuse, “The fears women have about negotiating are legendary. Women are four times less likely to negotiate than men, and on top of that, tend to work 10% faster and 22% longer for the same reward. But, remember this: When you fail to ask for what you’re worth, you stand to lose up to $1 million over the course of your career, thus solidifying your own wage gap and, often, your early exit from the leadership track.” To read the rest of Gate’s tips on how to negotiate a raise, click here.
After all was said and done, I had a much better idea of how to fight for myself and will be able to be more confident and competent in future negotiations. It is fairly simple, just be sure to:
Use Your Annual Review
Timing is everything. Use your annual review to negotiate a larger than normal raise and/or a title change. Performance reviews are a great chance to shine, to demonstrate your skills, and to point out the benefits that you have brought to your company in the past year. They are also a time when employers anticipate giving raises, and budgets have been allocated for this specific function, so they may have more wiggle room and means than during any other time in the year. Be sure to keep in mind that the average annual raise at most companies is between 3% and 5%, so if you are able to negotiate more- props to you! You can read this for more information on average salary increases.
Know Your Worth
Take the time to do some research and find out what people in comparable roles are paid. Some great tools for this are Glassdoor and PayScale, two websites where you can view jobs and compare salaries. You will be able to use this as a negotiation point and have some legitimate numbers to throw out as examples. Be sure to take into consideration the way that your specific company has historically compensated employees, as well as the average salary for someone in your role within your geographic area. Smaller companies tend to pay less and location is a significant factor.
Be Confident, Not Demanding
When asking for a raise, be professional and respectful. Keep emotion out of your negotiations. Remember, you are conducting a business deal, so you should be patient, respectful, and open-minded. Come prepared with specific reasons and examples as to why you have earned the raise, and be sure to provide a solid number that you have in mind as fair compensation for the work you do. Mind everything from the way you talk to your body language. Books like [amazon template=product&asin=0553804723] can help you understand how you come across. The way you handle yourself during this process is an opportunity for you to demonstrate your maturity, business acumen, and professionalism.