The first rule to follow when looking to renegotiate your salary is to acquire as much information as possible in advance before any discussion begins.
Consider the situation the company is in. Have they posted record profits, or is their financial performance below their targets? Have they recently made redundancies or are they increasing headcount?
These factors, among others, will impact if the organisation is going to pay above, below or on the market rate salary for a role.
What is the current market rate for your role?
While employers will not often disclose the salaries your colleagues earn it is still possible to gauge the average market rate for your job.
When you are determining what you think is a reasonable expectation for your salary increase, make your research as broad as possible.
"You should certainly consider your specific role, but also factor in the industry you work in. These factors can both have a significant impact on the salary you can expect."
The Robert Walters Salary Survey provides detailed information on salaries across a range of sectors and is a valuable resource when it comes to negotiating your pay.
What are the market conditions in your sector?
Make yourself aware of the conditions in your industry. Is there a shortage of candidates with your skill set? Have salaries been going up or remaining largely static? Are there a large number of roles available in your sector which need the skill set you possess?
Finding the answers to these questions will help to shape your expectations for any salary increase and leave you well-equipped when you enter into negotiations.
Use trade press publications as the basis for your research. Being aware of the news that impacts your profession will help you identify which skills and experience you possess that justify a salary increase.
Determine whether there are any salary trade-offs
When negotiating for an increase in your top line salary, be aware that there are potential trade-offs which you should be aware of and factor into your negotiations.
Particularly in roles where bonuses are common, employers may offset the increase in salary against your bonus. During your negotiations it may be worth asking your employer to clarify what you will need to deliver in terms of performance in order to maintain your usual bonus.
If your employer is unable to offer you the salary you are seeking don’t necessarily regard the negotiation as unsuccessful. Consider whether there are other perks or benefits that you would consider an adequate trade.
Ultimately, if your current employer is unable to meet your expectations, it may be time to consider a new job.
Feel free to contact us to discuss your salary negotiation with one of our consultants.