Strategy important in pay talks

A proactive and well-thought out approach can have a significant impact on the outcome of salary discussions.

You may have been in the same role for years, working away quietly and slowly growing embittered by what you see as a lack of appreciation. Or you may be relatively new to a role but feel that your salary is incommensurate with the value you represent.

Whatever the details of your dissatisfaction, you have two options: suffer in silence for fear of rejection, or arm yourself with knowledge and brave a meeting with the boss.

But when, where and how to broach the subject? And what are the best strategies for making your case effectively?

According to research commissioned by HR firm Robert Half, upper management believe that it's best to request a pay rise during your annual performance review. The completion of a project that's yielding good results for a company is also a good time to bring up the issue of pay.

"When the results [of such a project] can be fully appreciated, employers may well be in a prime position to demonstrate their value to the company, hence increasing their chances of successfully asking for a pay rise," says Megan Alexander, general manager of Robert Half in New Zealand.

She says that it pays to be strategic in your thinking around pay issues. "Successfully asking for a pay rise is not just about good timing."

A proactive and well-thought out approach can have a significant impact on the outcome of salary discussions.

"Employees need to be prepared to make a strong case to show how their performance has benefited the company and what value they will continue to bring."

Preparation is the key to successful pay negotiations. Employees need to be prepared to make a strong case to show how their performance has benefited the company and what value they will continue to bring.

It's also important to have an understanding of what is affecting the company's performance within the industry and being able to show you can make a contribution to strengthening this position.

"Employees who demonstrate their market worth to their employer will be in a stronger position during salary negotiations," she says.

It's pays to establish what you think you are worth in your current role. Again, research counts.

"Before asking for a pay rise, employees should look up comparable compensation figures for people in the same job role using tools for salary comparison, such as a salary guide," Alexander says.

"This will help them make their case with objective facts and figures serving as supporting material."

She cautions against water-cooler gossip about what others earn.

"Comparing salaries with a colleague who earns less than you can create feelings of animosity," she says.

"It's worth remembering that pay levels can vary depending on education, certifications and past experience. Falling into the comparison trap can prove highly demotivating."

"This can develop into resentment and affect everything from productivity to team morale."

It's also a dangerous game to play with your employer, who may have firm policies in place about the discussion of such confidential information.

Requests for pay rises can take time to process and in this case patience is really a virtue. Alexander cautions that the process can be longer than one would anticipate due to a variety of issues.

"Employees need to remember their supervisor probably cannot give them a definite answer immediately," she says.

"Even if you have made a convincing case, the boss will have to check with senior management or crunch the numbers before a decision is made. Also keep in mind that there's almost always a finite pool of money available for salary increases."

If the worst happens and your request for a pay rise isn't successful, it's a good idea to look at the situation rationally.

"Employees need to be able to look objectively at why the company can't proceed with a pay rise at a given time," says Alexander.

"Can their boss justify a salary increase higher up the chain? Can the company afford it? What will the company get in return? Are you too valuable to be refused?"

Finally, she says that if a company isn't in a financial situation to offer you more money, there may be other ways in which your contributions can be recognised.

"If the company is not able to fork out more cash, then offering the employee perks could be a better option. These could include allowing the employee more flexible working hours, training or a new position where they feel their skills can be better developed. Keep these alternatives on the table during negotiations."