Requesting a salary increase is a daunting challenge, with anxiety often causing employees to delay or avoid the conversation for way too long – sometimes years, even forever.
However, Advaita Naidoo, Africa Managing Director (AD) at Africa’s largest executive search firm, Jack Hammer Global, said that 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.
“The first step you must take, is to get over your fear of having the conversation,” said Naidoo.
She said that in today’s challenging economic climate with tighter budgets, the fear of rejection can be overwhelming.
However, by acknowledging this possibility and preparing alternative options, one can enter negotiations more confidently so that, regardless of the outcome, you will be in a better position than before.
Naidoo explained that the money conversation is more than a negotiation and not just about asking for more money; it is an opportunity to express your value, seek clarity, and find creative solutions that benefit both you and your employer.
“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,” said Naidoo.
“It is therefore important to have an open two-way discussion, where the needs and constraints of both parties are disclosed [which] will help minimise tension and open the door to a positive, mutually-beneficial outcome.”
The following approach can help guide those who fear asking for an improved compensation package:
- Understand your value
Naidoo said that 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.
- Be prepared
Preparation is key to successful negotiations, said Naidoo.
This involves looking into industry benchmarks, rehearsing your main points, and preparing for possible questions and opposing viewpoints. Practicing with a reliable friend or colleague can enhance your confidence and poise.
- Consider alternatives
If a salary increase is not feasible due to financial limitations, Naidoo said that it is important to come to the table with alternative solutions that are viable for the company.
Consider options like performance bonuses, study stipends, project incentives, or flexible work arrangements.
Do not leave all the brainstorming to your manager—offer practical ideas that benefit both you and the company.
She said that this approach is especially useful in larger corporations, where salary budgets are often pre-set and must be spread across many employees.
Understanding these constraints makes exploring creative alternatives, like leveraging discretionary budgets, more effective than pushing solely for a raise.
- Approach negotiations clinically
Heightened emotions, while entirely natural under the circumstances, can cloud judgment during negotiations.
It is vital to focus 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,” said Naidoo.
- Constructively handle rejection
Naidoo said that it is crucial to be prepared for your request to be turned down.
If the worst-case scenario occurs, stay calm and seek clarity. Request specific feedback on how to earn a raise and the conditions for an increase. This will provide insight into the company’s perspective and outline a clearer path forward.
Managers could 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,” said Naidoo.
Going forward
The MD said that “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.”
“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,” said Naidoo.
Original article published in Business Tech on 24 November.