On the table, one can put alternatives such as performance-related bonuses, extra stipends for further studies, or project-based incentives that add value to the company.
Asking for a salary increase or improved compensation package is one of the most nerve-wracking challenges employees can face.
Some employees will put off the idea of asking for an increase because of the anxiety surrounding the idea of initiating such a conversation.
Advaita Naidoo, Africa MD at Jack Hammer Global says it is important to get over the fear surrounding money conversations, to ensure that your value and contribution is fairly recognised and rewarded.
Fear of rejection
She acknowledges that employees have a fear of rejection, especially because of the current economic state with most workplaces having their budgets tightened.
“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.”
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Money conversation
She views the money conversation as more than just a negotiation, but as an opportunity to express one’s value, seek clarity, and find creative solutions that can be beneficial to all the parties involved.
“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.”
Naido advises employees to walk into the salary increase conversation with an open mind and ready to have a two-way discussion, where the needs and constraints of both parties are disclosed.
She gives five tips on how to approach the conversation, especially for those with fear:
Understand your value
She says it is important for everyone to recognise and articulate the value they bring to the organisation.
“The value involves detailing your accomplishments, quantifying your impact, and demonstrating how your work benefits the company.”
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Prepare thoroughly
She advises the employee to prepare, as this can pave way for a successful negotiation.
“This includes researching industry standards, practising your talking points, and anticipating potential questions and counter-arguments”
Naidoo adds that roleplaying with a trusted friend or colleague can help build confidence and composure.
Consider alternatives
She says one must walk into the room with alternatives to put on the negotiation table if the company cannot afford a salary increase at that certain moment due to financial constraints.
On the table, one can put alternatives 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.
“Do not 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.”
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Approach negotiations clinically
Naidoo says heightened emotions can cloud judgment during negotiations. Therefore, it is important 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
It is important to leave room for disappointment, as there is a possibility that your request can be turned down. And if this happens, one must remain calm and ask for 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.
“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.”
