Salary Increase Negotiations: The Employer's Point of View

Negotiating a salary increase from your employer is very difficult and can taint the employee-employer relationship. I've been on both sides of the salary increase negotiation, and they are always stressful and difficult for everyone involved. Before you decide to give your employer an ultimatum attached to a salary increase, please read this article and build a reasonable case for your salary increase. Few employees do the proper research before asking for a salary increase.

Consider the points below to put yourself in the proper mindset before approaching your employer for a salary increase. Each point represents the point of view of the employer, rather than the employee.

Salary Increase Negotiations - Employer Point #1: Very few employees should be paid the maximum amount for a position

Whether your company's pay program is based on your performance or on your seniority, chances are that you don't deserve to be paid at the highest possible rate for your position. So, don't enter into salary increase negotiations expecting to make the most possible for your position.

However, to help increase your worth to your organization, spend time improving your skills and efficiency as a worker, further your education, or pursue certification in your field. Reference a previous article of mine for similar ideas. During the salary increase negotiation, remind your employer of the progress you have made.

Salary Increase Negotiations - Employer Point #2: The organization has limited resources

They don't always act like it, but organizations have a limited amount of money to allocate to their workforce. A salary increase may not be in the company's best interest. And if a salary increase is not in the company's best interest, it probably isn't in your best interest.

Everyone wants to be paid fairly, but if your organization freely hands out salary increases, your organization may eventually need to cut back on some of those same salaries. Keep in mind that your organization may have a very small, or no budget for salary increases.

Salary Increase Negotiations - Employer Point #3: You must be paid fairly when compared to other employees in your job

Imagine you've been with a company for ten years. A co-worker with five years of experience asks for a salary increase and receives a salary higher than yours. Naturally, you'd want an increase to ensure you are paid fairly compared to your co-worker.

This is the kind of issue your employer must consider when negotiating a salary increase. Your salary does not exist in a vacuum. Your salary is one of many that the employer needs to consider. Keep this in mind during the salary increase negotiation. Be willing to accept a lower salary increase than you think you deserve.

Salary Increase Negotiations - Employer Point #4: You probably don't know what the "fair" pay is for your position

With all due respect to sites such as salary.com, they do notreport the "fair" pay for a job in a given geographic area. The information may be helpful, but it should be considered as one source of many.

Likewise, trade and professional journals should be taken with a grain of salt. These sources are often not very valid and usually report a higher salary. Do not walk into your employer's office demanding an increase to an over-inflated number.

Finally, always ask an employer why they are or are not willing to grant you the salary increase you want. They should be able to explain what the organization values (e.g. performance vs. experience) and can give you tips to improve your value to the organization.

Hopefully these tips will help you keep perspective and be successful during your next salary increase negotiations. Remember that you want to be a partner with your employer, not an adversary. Whether or not you receive a salary increase, read my previous article on improving your job satisfaction. There is a lot more to your job than your salary.

Sources:

Salary.com