Motivating for a salary increase or improved compensation package is one of the most nerve-wracking challenges employees can face. The anxiety surrounding the mere idea of having the conversation can be so debilitating, that this important act of self-advocacy often gets put off for way too long – sometimes years, even forever.
However, it is crucial – and entirely possible – to get over fears surrounding the money conversation, to ensure that your value and contribution is fairly recognised and rewarded, a leadership expert says.
“The first step you must take, is to get over your fear of having the conversation,” says Advaita Naidoo, Africa MD at Jack Hammer Global.
“Particularly in the current economic climate, where budgets are tighter than ever before, the fear of rejection looms large. But accepting the potential for rejection right from the start, making peace with it, and entering the negotiating room with alternative options, will ensure that regardless of outcome, you will be in a better position than before,” she says.
The money conversation is more than just a negotiation. It is an opportunity to express your value, seek clarity, and find creative solutions that benefit both you and your employer, she says.
“Having the money conversation is not just about asking for more money; it’s about finding mutually beneficial solutions. It is in your employer’s best interest to ensure your contribution is recognised and fairly compensated, just as much as it is in your own interest.
“It is therefore important to have an open two-way discussion, where the needs and constraints of both parties are disclosed. This approach will help minimise tension and open the door to a positive, mutually-beneficial outcome.”
Naidoo says the following approach can help guide those who fear asking for an improved compensation package:
Understand your Value
It is essential to recognise and articulate the value you bring to your organisation. This involves detailing your accomplishments, quantifying your impact, and demonstrating how your work benefits the company.
Prepare Thoroughly
Preparation is key to successful negotiations. This includes researching industry standards, practising your talking points, and anticipating potential questions and counter-arguments. Roleplaying with a trusted friend or colleague can help build confidence and composure.
Consider Alternatives
It may very well be the case that your company legitimately isn’t able to accommodate a salary increase at the moment, due to financial constraints. Therefore you need to approach the negotiating table with alternatives which they will be able to accommodate.
Think creatively about other incentives such as performance-related bonuses, extra stipends for further studies, or project-based incentives that add value to the company. Alternatively, more flexible working conditions could be an option.
Don’t leave the creative thinking ball in your manager’s court – provide them with potential solutions that are doable and will benefit both you and the company.
Alternative solutions are particularly relevant when navigating salary increase negotiations within larger corporations. It’s essential to understand the structural constraints that often come into play. In many cases, the overall increase pot is pre-determined and must be distributed among a larger number of employees. This can significantly limit the wiggle room available for individual salary adjustments. Given these constraints, it may be more effective to explore creative solutions that leverage discretionary budgets rather than pushing only for a salary increase.
Approach Negotiations Clinically
Heightened emotions, while entirely natural under the circumstances, can cloud judgment during negotiations. It is vital to take a clinical approach, focusing on the specific value you bring and the solutions that benefit both parties. Propose creative solutions that are valuable to you but cost little to the company.
Handle Rejection Constructively
Be prepared for your request to be turned down. If this worst-case scenario does materialise, remain calm and seek clarity. Ask for specific feedback on what you need to do to earn a raise and under what circumstances an increase might be available. This approach will help you understand the company’s perspective and can lead to a clearer path forward.
“Managers might be more open to discussing alternative benefits, such as additional vacation days, flexible working arrangements, professional development opportunities, or one-time bonuses, which can be funded from discretionary budgets. By thinking outside the box and proposing solutions that align with both your needs and the company’s financial realities, you can often achieve more satisfactory outcomes in your negotiations.
MD: Africa at Jack Hammer Global
“Whether that path forward is to follow the guidelines of the company to eventually achieve a raise, or whether it is an understanding that you have reached the limits of where you can go within the company, you will at least have learned where you stand and what choices lie ahead,” says Naidoo.
“So regardless of outcome, facing your fears and having the money conversation instead of putting it off will almost certainly result in improved outcomes for yourself and your career prospects.”
