How to negotiate a raise? The expert advises asking two questions
Ron Seifert, a senior client partner at Korn Ferry who also serves as North America compensation and employee benefits leader, tells Business Insider that both new hires and current employees should always ask two additional questions if their request for a raise is denied.
According to Seifert the first question should be about how the company approaches compensation decisions.
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It reads:
“How does the organization make compensation decisions for this position—taking into account market data, internal pay fairness, job performance, responsibilities, and deadlines?”
The purpose of this question is to better understand the company's compensation philosophy and the criteria for making pay decisions. Well-run organizations should be able to explain the principles behind compensation decisions.
“It's not about defensively questioning the employer's decision,” Seifert adds. “It's about understanding whether the decision is based on clear and consistent principles,” he explains.
Seifert also argues that if an employee is “significantly underpaid” compared to the market rate or his or her contribution to the company, this poses a risk to the employer. This can lead to lower engagement, less effort at work, or greater openness to offers from recruiters.
As the expert emphasizes, asking about the remuneration philosophy encourages employers to show “a bit of self-awareness” and consider whether they are underestimating the candidate's value.
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Back to the salary conversation
The second question that Seifert suggests is:
“What would have to happen for my salary to be re-examined and when should we arrange to revisit this conversation?”
He explains that simply meeting expectations does not always justify a raise. By asking this question, the employee is provided with a clear timeline and specific goals to strive for if they decide to accept the position. At the same time, it creates an opportunity to start talking about salary again.
The candidate should ask about specific deliverables, expanded responsibilities, performance milestones, and market changes that might cause the company to reconsider compensation.
“This gives the employee a clear set of expectations and creates a natural moment to resume the conversation,” explains Seifert.
Setting specific goals
Raising specific goals during salary negotiations can also help lay the foundation for future salary discussions.
John Gates, founder of Salary Coach, previously told Business Insider that Candidates should try to tie their request for a raise to a specific goalto better align the motivations of both parties.
Meanwhile, Patrice Lindo, CEO of Career Nomad – a platform that helps professionals transition careers – previously stated that Contributing to company goals can make it easier to justify an expected raise.
It's a strategy that has also proven effective for some of the world's best-compensated leaders, such as Elon Musk, who tied his trillion-dollar compensation package at Tesla to the company hitting certain milestones.
Before starting any negotiations Seifert also recommends conducting market analysis and thoroughly understanding your own market value. Candidates should know the salary ranges for comparable positions and the business value they bring to the organization.
— Always come back to the data, the situation and the value you deliver and create for the organization, concludes Seifert.
The above text is a translation from American edition of Business Insider
