WANT
A RAISE? LOOK AT THE BIG PICTURE
Asking
for a pay increase can be an ordeal so be sure to get your
timing right and present an objective case, writes BARBARA
McCARTHY
DEMANDING a salary increase can be risky — unless
you happen to be a star of a hugely popular sitcom such
as Friends. When the show was launched in 1994,
each of the actors was signed up for five years at about
€17,300 per episode, according to Time magazine.
Over the years, the friends banded together to negotiate
increases, and by the last series each was getting €770,000
a show. They had plenty of leverage, given that syndication
rights were being sold for about €3m per series in
countries around the world. While threatening to strike,
or even leave, worked well for the glamorous thespians,
it may not be a good idea for everybody, according to Michael
McDonnell, the director of the Chartered Institute of
Personnel and Development.
Threatening
to walk out can lead your boss to question your loyalty,
says McDonnell, who advises adopting a strategic approach,
drawing up a plan of action and getting the timing right.
“Do your homework first and know the marketplace,”
he said. “Make your request when you have
a list of achievements to back you up, such as after the
completion of a big project or when you are celebrating
an anniversary within the company.” After
you have quantified what you have been doing for a certain
period of time, it is important to benchmark your salary
within the organisation and the industry, according to McDonnell.
“Work out how much you earned when you joined the
company and see if the gap between you and another person
has narrowed in any way,” he said.
Finding
out what other people in your position earn outside of the
company will also give you an indication of what you could
be earning. This can be done by talking to a recruitment
consultant or by looking at various salary surveys in newspapers
or on the internet.
Colette
Clail, who runs the Career Coach, agrees that it
is better to ask for a pay increase when things are buoyant.
“Your boss may be much more approachable when
the company has just released good end-of-year figures and
when things are looking up,” she said. Even then
it can be hard to get more money, so it is important to
focus on what you will bring to the organisation in the
future. Highlighting past successes can help your argument.
“Ask for an increase after you have celebrated an
achievement because you will have demonstrated your worth
within the company,” she said. It is better to
present your case face-to-face rather than in a letter.
“Salary negotiations can be difficult, and many
people handle them poorly, causing frustration and low self-esteem
(if rebuffed),” she said. So decide when the
time is right and then ask your boss for a review meeting
to discuss your responsibilities and remuneration. Make
sure not to approach him on a day when he is run off his
feet, as neither of you will be relaxed. “In the
meeting, be confident and approach the subject positively
and constructively,” said Clail. “Look
for opportunities to make your boss’s task in dealing
with your approach as easy as possible, especially given
that resolving salary requests are difficult for your boss
too.”
Once
you have his or her full attention, remember to be reasonable,
and don’t make ridiculous demands. Follow the rules
set out by the Chinese philosopher Sun Tzu in The Art
of War, who said if you want to go into a battle unafraid,
you should: “Know yourself. Know the terrain.
Know the enemy.” If you are asking for an increase
of 25%, it is unlikely you are following those rules. Rowan
Manahan, the managing director of Fortify Services, the
career management and outplacement company, agrees that
it is a mistake to be arrogant. “Most people have
a disproportionate sense of their own importance within
an organisation and they think the company would go under
without them,” he said. “That is not
necessarily the case. Only a minute percentage of people
are indispensable and, statistically speaking, you are not
likely to be one of them.”
The key to getting what you want is to be aware of the company’s
position and your own. Rather than saying, “I
need a 20% increase”, try saying, “I
have increased sales by 20%”, before stating
what increased remuneration you would like. This should
provide a good platform for sensible discussions and will
enable you to present a stronger case.
It
is a good idea to run through what you are going to say
before attending the meeting, says Neil Pope, the managing
director of Merlin Associates, an executive recruitment
firm. This way you can ensure that you have a strong argument
and that you will be able to present it logically. “Once
you have discussed your contribution, it is very difficult
for your boss to turn around and say that you are not worth
more,” said Pope. “That is especially
so if your job specification has changed since your contract
was signed.”
The good news is that up to two-thirds of those who ask
for a pay rise get one, says Manahan, although many people
just sit there and fume because they have not been offered
an increase. “If you want it, ask for it,”
said Manahan.
If
the cash is not there, you need to be prepared to be open
to other types of offers, says Tony Donohoe, the head of
research and information services at IBEC, the employers’
lobby group. “There are always other options,”
he said. “Employees should be aware that
employers are becoming a lot more flexible when it comes
to negotiating packages and they are now offering ‘cafeteria-style’
benefits which closely match the employee’s circumstances.”
These can include stock options, profit sharing and performance-related
bonuses. According to IBEC’s 2004 management
survey, 45% of companies have performance-related pay schemes.
When a pay rise is not available, the individual can create
a package suitable for their needs. This can include overtime,
time off in lieu, car and travel allowances or other fringe
benefits such as childcare vouchers or additional leave.
So start polishing those negotiation skills.

Success
that can be measured will always put you in the
frame for a rise as the cast of Friends
discovered.
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Original article here