Research consistently shows that women are less likely than men to negotiate their starting salary or ask for a rise. According to a study led by Cambridge psychologist Dr Terri Apter in collaboration with LinkedIn and the educational charity The Female Lead, women fall behind men at every stage of pay and promotion negotiations. They take longer to ask for a promotion, are less likely to negotiate a new role, and nearly half of women polled had never negotiated a pay rise with their employer.
Part of the reason is the so-called entitlement gap – the feeling that they simply don’t deserve it. However, everyone has the right to fair pay and if you’re taking on additional responsibilities or have expanded your role, you’re perfectly entitled to ask for, and get, extra compensation. MD of Tiger Recruitment Rebecca Siciliano explains that the key is to broach the subject in the right way, having done your homework.
Know your worth
Whether you’re negotiating for a new role or a promotion, it’s important to arm yourself with the facts and a clear idea of the salary you want. This will make you feel more confident and less emotional and is more likely to result in a successful outcome.
Research the typical salary range for your role using PayScale or Glassdoor and find out what other companies in your industry and geographic location are offering their employees in terms of pay and benefits. However, don’t just rely on a few sources. Your employer will expect you to have done the proper due diligence so also look at independent salary and benefits benchmarking reports and bring relevant documentation with you to the discussion.
Build your case
To successfully negotiate a raise, be prepared to quantify your performance. What additional responsibilities have you taken on? How have you contributed to the company’s success? Draw up a list of your accomplishments and any positive feedback you’ve received. The more concrete evidence you have, the more convincing your case will be.
It’s good practice to keep a record of your achievements on an ongoing basis, to help strengthen any future conversations you have about salary or benefits.
Choose your time
Arguably, the easiest time to negotiate your salary is after you receive a job offer. Once you’re in a job it can be more challenging unless your company reviews salaries after probation or on a regular basis, as part of an annual performance review.
If it doesn’t, it’s important to choose your time wisely. In the middle of a pandemic is not ideal, particularly if your company has been badly affected. Instead, start planning ahead for better economic times, gathering the information you’ll need when the time is right to broach the subject with your boss.
Talk before you leap
That said, if you feel you’re so underpaid that you want to leave your job, talking to your current employer is recommended. All too often, not earning enough is one of the reasons candidates give for moving on, which could so easily be resolved with an honest conversation.
Bear in mind that there’s more to compensation than salary, so consider your entire package before making any hasty decisions. You may be better off than you think.
Don’t be disheartened
If your request for more money is met with a ‘no’, don’t be discouraged. Have a plan B in case the company simply can’t afford to increase your salary at this time. Think about some of the other benefits you could negotiate that would make you feel rewarded and valued. This might be more days working from home (which would save you money on travel costs), extra paid holiday or, if you’re in a sales role, a bonus for bringing in new business. And schedule an appropriate time to revisit the conversation.
If your employer feels your performance doesn’t merit a pay increase, ask what more you need to do and what specific targets you need to hit in order to qualify, and agree a time to check back in on your progress.
Salary and compensation conversations don’t have to be daunting. With the right research, timing, and approach they can work in your favour. And if you feel you’re losing your nerve, keep this in mind: your employer might say no but they might also say yes. So, have confidence in your own ability and go for it!
