Question received…

I am tired of people being hired off the street and making more money than I do.  I work 60 hrs a week, 6 days a week.  I went to H.R. and she said “Don’t bring attention to yourself.  This is not the time to rock the boat”.  How do I ask for a raise?  What do I do if they say no?

Remember work goes on whether we are in a downturn or upturn.  The best performers especially those that can show what they have brought to the company and the value they have, are justified in asking for a raise. The trick is to show your Boss how much you are worth. The need to reward good employees does not change if the economy is in a recession or an upturn.

Here are the five steps:

1.  Like with any negotiation, know what you are worth. Find out what people are making in your market and your position.  A recruiter is a great source.

2. Once you know your value, request a conversation with your Manager. Don’t raise your voice or threaten. No emotions. Be professional and prepared.  Remind your Manager of the strong contributions you have made and the things you have accomplished and have them documented. Include the key projects you’ve completed and goals you have met.

3. Now provide your Manager with your research on what is competitive in the market.  Don’t say I am underpaid. Again keep it focused on the vital role you have had in getting the company through the recession. End it with I’d like to discuss my value to the organization

4. Don’t expect to be rejected, but be prepared.  I appreciate that finances are tough now, can we discuss non-salary perks.
 
5.  Another way to deal with rejection and show you’re serious is to ask what you can do in the next six months to make the next conversation successful.  Set your objectives and be specific.

Two key words in salary negotiation.  Preparation and rehearsal.  Do your homework.  It’s a chess game. You are trying to guess each other’s moves.

1. Research – There are a number of good web sites.  Salary.com, salary source, Indeed, Bureau of Labor Statistics.
2. Keep in mind some other factors for example,  the strength of the regional market, the size of the company, the size of the dept. the number of direct reports, financial well being of the company.
3. When companies are doing well, co’s tend to pay more than when times are tough.  Times are tough for most everyone. Companies have a new business model.  “Lean and mean” and bare bones. The Mantra is “doing more with less”.  Companies are trying to keep compensation costs from increasing and even laying people off in order to cut expenses. Everyone has to do their part.
4. When you complete your research, you will have a pretty good idea of what is competitive.  When they make you an offer, you will know where it falls in the range. Look at the median of the range (50%).That is where you should aim.  When it comes to salary negotiation, your leverage is one thing and one thing only…how important it is that you come to work for that person or company.  How bad do they want you?
5. Your greatest weapon in salary negotiation is two things: information.  The more prepared you are, the more control you have and compromise. Win-win.  Some companies always make sure they are competitive because they want to attract and keep good talent.  Others just want to pay as low a figure as they can.  Research the company and read between the lines.  Employee focused company or not. Look at benefits and perks you can convert to cash.

Remember – When it comes to the job market…put some muscle, time, money and energy behind your goal and you will achieve it.

Don't assume your skills, experience and education will automatically determine your salary. Salary is not based on the candidate. It is based on the requirements of the position. The Hay Compensation program is based on the position. The range allows us the flexibility to pay more if we need to. Your leverage is again based on how important it is that YOU come to work for the company. The longer you are in the interview process, in other words the more face time you have with the different levels of interviewers the more leverage you have.