4 Bold Pay Raise Strategies That Actually Work
Getting a pay raise is a struggle, not yours, though.
Money, money, money
Must be funny
In the rich man's world
ABBA’s classic song never gets old. It does place the important issue:
”If I had a little money…”
What would you do if you had a little money? Or, better yet, how do you make sure you get a little money (e.g., a pay raise)?
Discover four strategies that will have your boss saying 'yes!’
Btw. founding members now have a new pay raise checklist available. Check the folder and get ready for your salary negotiation:
Saved in the folder, as always:
Sell your ‘new’ skills unconventionally
You get a job and probably follow a job description for a while.
Then, you start doing more and more because you are more experienced and involved in the daily life of your company.
Inevitably, you learn and deliver a lot more than you were hired for. Think about it. What do you do? Or what would you like to do more?
All these reflective thoughts will help you get ready for your salary negotiation. For instance:
Do you train new colleagues?
Do you improve processes?
Do you constantly exceed your goals?
Do you help your boss with the team?
Did you get a new client?
So far all these are just facts, now add the spice on. It is all about framing your value for the team and the company. Highlight how your skill has saved time and money (leaders love hearing about efficiency and well, money).
E.g., I have taken an initiative and trained the new managers in leadership skills. As a result, they are more engaged and consistent with team management.
This is saving us 10.000 EUR on external training. Plus, we now have the structure for the future promotion. Having said that, I’d love to continue doing it and align my compensation with this new impact.
Two things to remember:
Sell your impact
Make it about the future (what do you want to continue doing or want to do)
The cost of losing you
Your salary is nothing compared to the money invested in hiring someone instead of you. Namely:
Duties handover (more overtime, training others on projects): other colleagues, boss
Writing a job ad/hiring: HR, boss
Onboarding: boss/other colleagues
Supervision: boss/other colleagues
Hours are wasted on hiring and training someone new. Let’s face it. The current staff is always cheaper. Your salary is probably even lower than a newcomer would have asked for.
Put down a few numbers.
Without threatening, show the company the costs of replacing you, both financially and in terms of lost productivity and team trust.
Present a hypothetical scenario of what it would take to replace your expertise, skills, and knowledge. Needless to mention your contribution to the team culture.
It might feel cheeky to use this technique, but it is sometimes necessary to earn a little money.
Turn your request into a win-win negotiation
You have heard this one before, I am sure. It’s a technique flying all over self-help books, ChatGPT, and of course LinkedIn.
In short, instead of asking for a raise, propose a series of performance milestones that trigger incremental raises.
You want to turn the conversation into a shared and interesting goal. Think ahead to impress and please your boss. Asking for a little money is not a one-time event. It’s a campaign, baby.
Bosses like committed colleagues.
Asking for a pay raise is not begging your company to notice you. You are not a victim of your boss, don’t wait for their mercy. Be proactive and think about mutual success.
Yes, hard to consider these days. But works in the long term.
Offer to take on more (I’ll take that job, sir!)
Have you heard about the principle of reciprocity? When you give value, people feel inclined to give back. For example:
You pay for lunch for someone. Likely, they will pay the next one for you.
If you help someone, they will feel obliged to help you in return when you need something.
In many companies, the salary is linked to the position. They have a range for each job and that’s it. When you reach the top, there is nothing more they can do for you.
Unless…
Rather than just asking for more money, suggest a new role that you would be willing to step into, or offer to take on additional responsibilities (ideally, take something off your boss’ shoulders).
You’re kind of doing a favor to them if you’re ready to expand your role in exchange for compensation. Sweet deal.
You take the job and you get little money. Fair and in favor of the relationship.
TL;DR
Own your worth. It is all about how you frame and position your job, value, and future development. You get a raise for your impact. Communicate it clearly.
You will practice this and a lot more in the online course The 4 Pillars of Leadership Communication, which starts in May. Get your seat and work with me.
Lastly, if you don’t ask, you don’t get it. Once a year, you should ask for a little money.
Good luck and have a good one, Ivona
On the menu:
Thursday Newsletter: Lead Your Team with Transparency, Not Bossiness
Monday Case Study: Groupthink Is a Problem