Mclaren Consultancy

After getting your year-end bonus, do you feel that it is time to ask your boss/ HR for a salary promotion? Do you know how they decide if you are worth the pay raise? And how can you show them your value? Here are some tips for you in this battle.

 

How does your boss decide your salary?

 

Business is about ROI. You need to prove your value to your boss before you ask for a salary increment. Salary is, in the first place, proportional to the value you brought to the business. A CFO that makes critical decisions for the company must be given a higher compensation than an accountant.

 

Other than that, the more quantifiable, the better. For example, a salesperson generating $100k revenue per month while costing the business $20k per month represents a good ROI to the business. Therefore, there is a much bigger room for salary negotiation.

 

So, when thinking about asking for a pay rise, justify your ROI to the business with quantifiable figures.

 

What to avoid mentioning during pay rise negotiation

 

Even if you have the justification for a pay rise, it is still an art to negotiate.

Here are some red flags that you should always avoid:

 

“I am an old staff and have served the company long enough”

 

“Why do you increase his salary but not mine?”

 

“If you do not raise my salary, I will jump to another company.”

 

“Please, I really need more money to support my family, do me a favour.”

 

The above ways are not only unable to prove your ability and indispensability, but can also make you look bad. Your company is not doing charity, they unfortunately won’t be merciful because you are poor. You are not irreplaceable, the business can still operate with or without you. Ultimately, what moves them is your value. Hence, no matter if you are a new joiner or an experienced employee, If you are valuable for the company, don’t hesitate to voice out and negotiate; if not, hold back and be prepared for the next opportunity.