What is my work worth? Am I possibly selling myself far below value? How can I convince my boss to give me a raise? Probably every employee asks himself these questions. In fact, you should prepare well for the upcoming salary interview with your manager or supervisor.
When is the right time for the salary interview?
There are no fixed rules for when salary negotiations take place. However, the topic of salary is usually addressed during the job interview. Future salaries are also negotiated after a successful probationary period, between two fixed-term employment contracts, during the transition from a fixed-term to a permanent employment contract, or in the event of a promotion or transfer to another department. A good opportunity can also be the annual appraisal interview. If this does not exist in the company, experts advise a salary discussion only every 18 to 24 months.
Be sure to take into account the current situation in your company! If the company is doing badly at the moment, perhaps even in the red, this is the worst possible time. The manager will hardly have a budget for a significant salary increase. If, on the other hand, business is booming, the stock is good. Nevertheless, you should come up with some arguments before the interview. (Source: https://www.cnbc.com/2019/11/11/biggest-salary-negotiation-mistake-i-ever-seen-after-20-years-of-hiring-and-interviewing.html)
The principle of a salary negotiation
Whether you are entitled to a raise has nothing to do with your personal situation. It doesn’t matter if you have an expensive loan to pay off or maybe you’re going through a tough time. Your boss is under no obligation to pay you more money. He will only do it if he sees an advantage in doing so. Because really, it’s a simple trade-off. You get more money and in return you deliver even more commitment and an even higher work performance. The key here is to convince the boss.
Work hard and talk about it! Team leaders are often so busy that they are unable to assess the performance of individual employees. Those who appear modest and do not loudly brag about their achievements can easily be overlooked. Therefore, you should document your work and performance as comprehensively as possible. Write down at regular intervals what they have achieved. Especially if you have shown above-average commitment on the job. Among other things, you should consider:
• What successes you have achieved for the company.
• What continuing education courses you have taken to increase their expertise.
• How and by what means their performance has increased since the last salary negotiation
• Why you are particularly valuable to the company.
• Whether you perform better than the average in the company.
• What your professional goals are and what benefits you will bring to the company in the future
• What the company can expect in return for the salary increase
Do not make excessive demands
If you make unrealistic demands, you are not doing yourself any favors. Therefore, you should definitely research what you can demand in your profession, with your qualifications and professional experience. You can find relevant information on the Internet. The website of the Federal Statistical Office is particularly helpful. Industry and professional associations also publish up-to-date salary tables. In any case, you should definitely factor in inflation of around 1.5 percent. For long-term employees, the rule of thumb is around three to ten percent salary increases at intervals of 18 to 24 months. Those who move up to a higher position can expect a salary increase of ten to 15 percent. Also be sure to consider the tax consequences! Sometimes, unfortunately, more gross means less net in your wallet in the end. It’s best to work this out with your tax advisor beforehand.
Of course, there are better things than haggling over money with your boss. And you certainly go into the meeting with a queasy feeling. But he or she can’t really do more than say no. With a little intuition about how the manager or team leader is feeling at the moment, it can even be a very inspiring conversation. You have prepared well and collected arguments as to why you deserve a salary increase. Despite your self-confidence, be open to criticism. To avoid jumping right in, you can first offer to talk about your achievements or the project you completed. If the conversation goes in the right direction, the time has come to talk about money. However, if there is no room for a raise and the manager is being hardheaded, don’t fall into a whining position under any circumstances. Remember, they are getting more salary only as a reward for your performance or as an advance for your future commitment. But not because they want or need more money because of whatever. Also, avoid at all costs comparing yourself to other colleagues or worse, gossiping about their miserable performance. Always remain polite and never become insulting!
There is more than money
Even though it may not have worked out this time, don’t bury your head in the sand and try again at the next performance review or in 18 to 24 months. Your boss may also offer you other benefits. A travel allowance or a company car. However, these so-called non-cash benefits must also be taxed. A good alternative to salary increases could also be a company pension plan or shares in a successful startup company like https://www.betting.co.uk/us/.