Seeking a salary increase above the inflation rate is never easy. And yet it’s essential, for at the “inflation rate”, after taxes, you may end up with no more money; perhaps less. Here’s what some Human Resource sources suggest you can do to get an above-average raise in good times and bad.
Follow these salary increase questions steps to get you that pay increase.
- Trumpet your worth – All too often your employer is not aware of how much profit you delivered to your company. If you cut costs $150,000 in your department, but your department’s bottom line shows exactly what you budgeted, he may not realize you did it. You had taken serious “defensive” moves to protect the corporation’s profitability. Tell your boss about this saving!
- How much you want – Your best move is to table, in point by point form, the $150,000 cost cuts you made and how you did it. In writing! Ask for a meeting with your superior. Point out what you achieved. And in a business-like manner, discuss the value you gave. If your boss then realizes your value – especially you pulled this off year after year – he might then realize your worth. He might realize your salary increase is worth 4% of this $150,000 amount, or $6,000.
- Take on more responsibility – Salary increases are based on profit accomplishments and merit. Never on what you think you need. One way to seeking a salary increase is to take on more responsibility, with no immediate pay raise.
- Ask for the payback – Get a written agreement that if you perform at peak performance, a salary increase of a certain percentage will be discussed seriously at a specific time – six months or one year. If you reach your objectives at that time, and you are refused the salary increase, you have a true picture of your value to your superior and how your company treats his it’s employees. It might be time to consider moving on!
- An option to “NO” – Sometimes companies have legitimate budget concerns that necessitate them saying “No” when you are seeking a salary increase. An option, which would cost them less, involves their agreement to pay your share of your life insurance, medical, dental or similar benefits. Although your share of life insurance may be only $1,200 annually, it would be pre-tax money that drops right into your pocket. Depending on the nation, state, province, it might result in a lower tax rate on the amount. Check with your accountant.
- Value your potential – Perhaps you have a very high potential to provide profit but you are not in a position allowing you to perform to your fullest extent. If you have gotten the right training, or the firm will give it, and you have the right temperament, you might switch to another department. One that pays more, such as shown in the following step.
- Go where the money is – For example, move from accounting to sales or marketing. There in addition to your base salary, your income usually comes from commissions and performance bonuses. Your income could be substantially higher. There are risks: you could fail in this new position. But is it worth the risk?
Following these salary increase, questions give you an opportunity to get the pay increase you deserve!
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