Times are tough, but is getting a pay rise completely out of the question?
It may be harder, but it’s not impossible to negotiate.
Here’s how…
It’s important to be realistic in the current economic climate, but we shouldn’t be bulldozed by a blanket response that there are no increases or bonuses to be had right now. Look at your company’s results. Your understanding of the economy, the effect of Covid, how your business sector is affected and how your company is performing will put things into perspective.
If you don’t ask, you don’t get…
Kim Meredith, Director of The Dealmaker Company, an integrated strategy and negotiation skills consultancy has this to say, “The gender pay gap in South Africa stands at 25%. She points out that women have failed to narrow the gap largely because they’re poor negotiators. Conflict is inherent in negotiation and because women prefer to avoid conflict, they don’t get the deals they want.”
I agree with Kim that women have to work harder than men to establish credibility. We’re often perceived as emotional, irrational and illogical, and if we’re to win in the workplace, we need to work on these perceptions.
The woman who knows what she wants will get what she wants,” says Kim.
Be prepared…
Before asking for a pay rise, ask yourself two questions:
- Is your company in a position to give you an increase?
- Do you deserve one?
In answering the second question, it’s useful to evaluate your intrinsic worth and value to your organisation. It’s important to quantify your contribution to your company’s bottom line by proving that your cost to company is minimal to the revenue you generate. Then qualify your other contributions – mentoring a team, cementing good client relationships etc.
Value -added employee…
It’s hard to negotiate a pay increase if you don’t know what fair market value is. Most people are totally ignorant of what their market value is.
I suggest you look at comparative industries and earners relevant to your own qualifications, experience and expertise to benchmark remuneration. If you can provide evidence that others in your position are earning more and that you are producing better results, the better for you to negotiate. Have a look at our recent salary survey – https://www.adtalent.co.za/find-a-job-bak/salary-survey-2022/
Kim says, “Being a value-added employee is key – getting the job done, being consistent, working hard and smart, taking on responsibility and treating others with respect will earn you respect, give you the edge and up your bargaining power. And don’t sell yourself short! In these tough economic times, companies will pay a premium for those they value. If you don’t value yourself, don’t be surprised if the company doesn’t.”
She adds, “ A monetary increase isn’t the only way to up your pay package. Including many variables in a salary negotiation is what a skilled negotiator would do. In the current climate angling for benefits or perks in lieu of cash is a clever approach – asking that your remuneration package be structured in a tax-efficient manner could result in a 15 – 20% “cash-in-your-hands” increase.”
You may want to risk a little to gain a little. Consider reducing your basic salary and negotiating more money based on productivity and performance.
GOOD LUCK!
Be honest, open and direct without being threatening or manipulating.