Asking your boss for a raise is never an easy conversation. The key to negotiating your salary is gathering as much information as possible before negotiation begins.
Understanding the company's finanial situation and presenting a clear and confident argument for your pay rise can help ensure a smooth and successful negotiation.
Here are the 4 top questions you should be able to answer before entering into any negotiating talks.
How is the company doing?
It is important to understand how the company you are interviewing with is performing. Have they posted record profits for the previous year, or is their financial performance below their targets? Have they made many redundancies in the past 12 months? All of these factors will have an effect on whether the organisation is going to pay above/below or on the market rate salary for a role.
How much do employees with similar skills earn?
Research the market and find out how much employees with your level experience and responsibilities are earning. The key is to demonstrate your views with good examples of similar functions in your specific industry. The Robert Walters Salary Survey provides detailed information on salaries across a wide range of sectors and is a useful tool to utilise.
What are the market conditions?
Is there a shortage of candidates with your skill set in the industry you work in? Have general salaries been rising or falling with in the sector? Are there a high number of roles appropriate to your skill set available in the sector? It is important you know the answers to all of these questions so that you understand what level of salary you are able to request and what is realistic.
Are there are any salary trade-offs?
Try not to be lured into a false sense of satisfaction by the top-linesalary figure. Make sure you do your salary sums because you may have increased costs in your new job. For example, you may need to travel further to reach your new office or workplace and you might lose out on other benefits too. Of course, the reverse can be true. Your new salary may not be as high as you'd like but there could be other advantages; a company car, free health insurance, gym membership or other perks. Never forget, however, that this is the wage you're going to be living on. So the greater actual salary you earn the greater your financial security.
Find out how much you're worth and download our free Salary Survey app for iOS or Android.