It is natural for professionals to seek better pay as their careers advance to reflect their wider experience, skills and organisational contributions. Although it might be difficult, negotiating a pay raise is important for both career success and financial gain.
In this article, we’ll look at two effective methods for salary negotiation: making counter-job offers and using external offers as leverage.
The Importance of Salary Negotiation
It is essential to understand the importance of salary negotiation before diving into the tactics. Many workers are reluctant to start these conversations out of concern for being rejected or for risking their relationship with their employer.
It’s important to remember that companies expect their employees to stand up for themselves and understand their value. Confidence, professionalism, and dedication to professional development should be reflected in a reasonable pay raise request.
Using Counter Offers for Pay Raise
A counter job offer is a tactic where you present a competitive job offer from another company to your current employer. The goal is to present your value in the job market while giving your employer the opportunity to match or exceed the external offer. Here’s how to effectively use counter offers:
- Do Your Research
Before considering a counter job offer, research existing salary ranges for your position and experience level in your industry and location. Online salary tools, industry reports, and networking with colleagues can help gather valuable salary data.
- Approach with Care
Schedule a meeting with your employer or human resources department to discuss your salary. Express gratitude, and highlight your achievements and contributions to the company. Then, politely mention that you have received another job offer and explain the benefits.
- Highlight Your Value
Emphasise your loyalty to the company and your desire to continue contributing to its success. Focusing on how your skills and experience have evolved since your last salary review, and how your increased expertise benefits the organisation.
- Be Open to Negotiation
Your employer might not be able to match the external offer entirely, but they might offer other benefits, such as increased bonuses, additional vacation days, or flexible work hours. Be open to negotiations and consider the overall package offered.
Leveraging External Offers
Even if you haven’t received a formal job offer from another company, you can still use an external offer as a negotiating tool. Here’s how:
- Cultivate Your Network
Build a solid professional network, attend industry events, and stay in touch with former colleagues. Networking can lead to new job opportunities and provide you with potential external offers to use as leverage.
- Express Your Intentions
When discussing your pay raise with your employer, mention that you have been exploring career opportunities to continue your professional growth. This conveys that you are proactive about your career and open to considering other options.
- Showcase Your Achievements
During the negotiation, highlight the value you have added to the company, specific projects you have completed, and any recognition or awards you have received. Solid examples of your contributions strengthen your case for a pay raise.
- Stay Professional and Positive
Throughout the negotiation process, remain professional, respectful, and positive. Avoid making threats or burning bridges, as maintaining a good relationship with your employer is essential, regardless of the outcome.
Pay raise negotiation can be nerve-wracking, but it is a necessary skill that can boost your career and financial well-being. By using counter offers and leveraging external offers, you can show your value, demonstrate your commitment to professional growth, and secure the compensation you deserve.
Remember to be prepared, confident, and professional during the negotiation process, and remember that employers often appreciate employees who are proactive about their careers.