Discussing Money at Work - Part 2: Negotiating a Pay Raise

I used to tip-toe around the subject of money with my managers, so as not to discolour the dedication to my work. I soon found that employers pay you only what they need to.

If you cannot discuss money confidently with employers, your good intentions can soon be turned against you when you are overlooked for a pay increase. Unfortunately, I learned this the hard way. I was a top performer but was seldom compensated because management knew I wouldn’t ask for more.

Honour, respect for your work, and a non-materialistic nature are noble concepts. However, learn from my mistakes, and remember that you are trading your valuable time for money. If you work hard and are underpaid, you may convince yourself of your dedication, when in reality you are disrespecting the value of your time.

Another lesson I had learned when it comes to the discussion of pay increases is that employers mirror the worth you see in yourself. If you are a productive employee and can confidently ask to be paid a specific increase, you will automatically increase your perceived value to the employer.

In contrast, a hard worker who shies away from the subject of money can be (and usually is) taken for granted by the employer. If you don’t value your time, then you cannot expect your employer to.

My previous manager (a good friend) had taught me a technique he used to approach pay increases in a non-greedy manner. I have since used this technique successfully on several occasions, and can vouch for its effectiveness. Admittedly, this works better in larger organisations but will suffice in smaller businesses.

Technique: Quarterly Reviews

Most often, employers perform “Annual Reviews”. This is the most appropriate chance employees get to discuss salary expectations. My old manager’s technique was to make an appointment to see his direct manager, and say the following in his discussion:

“Thanks for taking the time out to see me. I wanted you to know that I am quite happy with my work, my colleagues and you personally. However, I am aware that my contribution and dedication are currently not on par with my pay scale.”

Then, wait for a cue from the employer. If the employer hesitates, continue:

“If you are unable to offer an immediate pay increase, I understand. I am willing to settle for my salary and performance review to be done quarterly rather than annually. This will give you a better chance to observe my performance, and adjust the scale of my pay more frequently rather than in single bursts.”

With this technique, you have achieved several goals. Firstly, by saying some positive things about your work environment, you can avoid the appearance of being “all about the money”.

Secondly, rather than saying “I want a pay increase”, you are simply observing that your dedication is not “on par” with your pay. In the mind of the employer, this plants the seed of “to be on par, either his/her pay must increase, or his/her dedication will decrease”. The prior being the preferable option for the majority of employers.

Finally, you have closed with an alternative that is of equal benefit to you. This is an old sales trick, in which a salesperson would try to seal an appointment with a prospect.

Rather than asking, “Is it okay for me to come by your office and show our products?” (to which the answer can be yes or no), the salesperson asks “Which day suits you better, Monday or Wednesday?” By offering two alternatives rather than a yes/no yielding question, you can increase the odds in your favour.

In reality, most employers pick the second option: “reviewing your salary more frequently”. In most cases, your boss has a boss of their own. Justifying pay increases to their management on your behalf can be just as daunting for them. By going through the salary and performance review process, it will give them the documentation and evidence to confidently negotiate an increased salary for you.

Furthermore, employers are much like consumers. An item that costs $3,600 appears much more attractive when we can pay $150 per month over the next two years. With more frequent salary reviews, the increases in pay will be smaller and less taxing on the employer.

I hope this simple technique brings you the kind of results it has brought myself, and other colleagues I have shared it with. Please use the comments section below to share your experiences. As always, I value your feedback and appreciate the advice I receive from all of you.