Are you being paid what you are really worth? Do you think you deserve a salary increase? The chances are that your boss won't voluntarily offer you a huge bonus or salary increase. Salary negotiation can be difficult, and many people handle it poorly, causing frustration and ill-feeling. People use different approaches: they can write; discuss informally; discuss with colleagues and hope the boss gets to hear; they ask the boss politely; demand firmly; go over the boss's head, or maybe even threaten to resign, secure another job offer, or simply resign.

To resolve this, you have to make the first move and it requires skill and preparation to effectively negotiate a salary increase. There are constructive ways to approach salary negotiation, and techniques to achieve good outcomes. John Lloyd (a speaker, seminar leader, marketing consultant and columnist) suggests the following tips for better salary negotiations:

1. Be honest with yourself.  Do you deserve an increase? You need to believe that you have delivered an outstanding and measurable performance within your company that deserves an increase. It helps if your company is doing well and that your boss is aware of your contribution.
2. Know the market value. Knowing relative market rates helps objective assessment of situations. It is important always to recognize the difference between the value of the role that you perform. If you continually feel frustrated about your pay levels despite trying all of the techniques and ideas for achieving a pay rise, it could be that your boss or employer has simply reached the limit of the value that they can place on your role, which is different to your value as an individual. You could have a very high potential value, but if your role does not enable you to perform to your fullest extent then your reward level will be suppressed. For example does a professor who sweeps the street deserve a street sweeper's salary or a professor's salary?
3. Have a plan. Successful salary negotiation requires clear and focused thinking. Be prepared for any objections and start the discussion by carefully explaining why you feel that you deserve an increase. Present your work accomplishments, especially records of good performance from customers and superiors. You should always keep a journal. Let your actions show that you deserve an increase.
4. Ensure that you set the correct tone. Avoid ultimatums and threats. Let your employer know that you will understand their point of view, but make it clear that you expect the same courtesy.
5. Be persuasive. There is a difference between being effectively convincing and annoying and obstinate. Attempt to persuade your employer the benefits of increasing your salary. Try not to argue, but be prepared with strong points on why you deserve this salary.
6. Aim high, but be realistic. Be reasonable and professional in your approach. Use a win-win partnership style of negotiation. Base your figure on what the market is offering someone of your experience. 
7. Be objective. Your presentation will be more powerful if based on objective criteria like what other related companies pay to people with similar experience.
8. Be positive, enthusiastic and confident.  People are sometimes reluctant and nervous to ask for an increase. Your research of the marketplace, coupled with effective preparation should give you the confidence to present your request for a raise. The worst thing that can happen is that your boss will say no, but you will have positively tabled your feelings, and this is valuable for your next meeting.
9. Be patient. Your boss is probably rewarded for controlling costs and not for awarding better than average increases. You may therefore not succeed with your first attempt, and the negotiations could result in a series of meetings. Be patient, and remember that good increases are achieved with effective strategy and a professional approach.
10. Aside from issues of exploitation and unfairness, if you find that the gap between your expectations and your employer's salary limit is too great to bridge, and then look to find or develop a role which commands a higher value, and therefore salary. You can do this either and both with your present employer by agreeing wider responsibilities and opportunities for you to contribute to organizational performance and profit, and/or perhaps with a new employer. However you must bear in mind that salary increase is not compulsory, visit labour relations amendment act

Sources:

• Businessballs
• labourprotect

Page Created: 26 October 2011