Negotiating pay rises
Earlier this year, a staggering 92% of households in the UK reported that their cost of living had increased compared to the previous year.
While it's encouraging to see an average 8.2% pay increase in salaries, it's important to note that this is not the case for all workers, and negotiating pay raises can be a challenging task for many. During tough economic times, negotiating a raise can be a daunting task. However, there are several ways you can navigate negotiations effectively. Below are a few methods that can assist you in managing this process.
Research and preparation:
It is crucial to research industry standards and salary benchmarks for your role and experience level. This information will help you justify your request and enable our consultants to give you a rough guide on the average salaries for your position. Additionally, you should gather data on the current cost of living in your location to get a better understanding of salary increases and your requirements, including housing costs, transportation, and other essential expenses. This will help you make informed decisions during the negotiation process.
Timing is key:
Timing is crucial when it comes to negotiations. It is best to have the conversation during performance reviews or after successful completion of a significant project. Additionally, it is advisable to choose a time when the company is financially stable.
According to a Speakers' Corner survey of 500 UK business owners, more than half (56%) were open to granting pay raises to financially insecure employees. This statistic shows that although timing is important, most businesses care about their employees' financial well-being.
Quantify your value:
Clearly articulate your contributions to the company. This includes any recent accomplishments or projects that have positively impacted the organisation. Ensure that these achievements have occurred since your last pay review or increase. Showcase how your skills and experience align with industry standards and how your role contributes to the company's success. You could also research the market, comparing your salary, role, and requirements.
Although, data has proved that 36% of employees say feel appreciation is best demonstrated with money if a salary increase is not immediately possible, consider negotiating for non-monetary benefits. Flexible working arrangements, additional annual leave, or professional development opportunities might be an alternative solution to consider.
When initiating a conversation about salary increase, it is crucial to maintain a positive and professional tone. Avoid sounding confrontational or entitled, and instead approach the conversation with a constructive attitude. Additionally, it is recommended to use "I" statements to express your needs and contributions without making it sound like a demand.
To increase your chances of success, you may suggest flexible approaches such as phased or incremental salary increases over time, especially if the company is facing financial constraints. Alternatively, you could discuss the possibility of performance-linked bonuses or incentives tied to achieving specific goals. These approaches can help you negotiate a salary increase while considering the company's financial situation and performance expectations.
Be open to negotiation:
When negotiating your salary with your employer, it's important to listen actively to your company's perspective and concerns. Be open to their suggestions and try to find common ground that benefits both parties.
If your employer is unable to meet your salary expectations, it's important to explore alternative solutions or compromises that could be beneficial for both you and the company.
Before entering negotiations, it's also important to know the minimum acceptable increase you would accept or conditions that would make you satisfied. This will help you make informed decisions during the negotiation process and if you are still unsatisfied you should consider discussing actionable steps to achieve a salary increase or consider other opportunities that will offer more for your skillset.
If you're not sure about the best approach or need guidance, consider seeking advice from our team of experts. Remember, negotiations are a normal part of professional life, and by presenting a well-researched and reasonable case, you increase the likelihood of a successful negotiation.