How to Negotiate a Raise (Tips, Tactics and Examples)

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Reviewed by Chris Leitch

How to negotiate a raise

Knowing how to “sell” or “talk yourself up” is (unfortunately) useful when it comes to advancing your career. However, many people struggle with it, either because they don’t realize their full worth yet or because they fear that they’ll come across as arrogant or ungrateful should they strive for more.

If you’ve already initiated the process of asking your manager for a raise, then congratulations are due: you’ve completed that first uncomfortable step! Now it’s time to prepare for the actual negotiation that’s coming up.

Read on for some actionable advice on what to do and some tips on what to avoid when negotiating your salary!

What to consider before negotiating a raise

Considering the following four points can help you justify the salary range you’re targeting for, as well as better understand your manager’s perspective:

  • Your work performance and contributions. Be as objective as possible when assessing the quality and output of your work, relying on figures and feedback.
  • Your duties and responsibilities. If your role demands you to carry a lot of responsibility, or if you’ve taken on additional duties since your last salary increase, take note of this.
  • How long it’s been since your last salary increase. Determine how much time has gone by, and check your contract for any mentions of potential pay raises.
  • The company’s finances and performance. Considering the broader context you’re in will help you decide on the right time to ask and how much to ask for.

How to negotiate a raise

The following 10 steps can make the negotiation process easier, from before you’ve scheduled a meeting with your manager to the moment your salary negotiation comes to an end.

Step 1: Do your research

Before you enter your boss’s office for your scheduled meeting, it’s imperative that you do your research. Even if you’ve already covered this step before, when you first raised the matter with your boss, you’ll want to refresh your memory and ensure that all the numbers you’re using to support your demands are the latest.

Besides looking at salary comparison websites, you’ll also want to take a close look at your contributions and achievements in the workplace.

Step 2: Define your target salary range

Websites like Glassdoor are designed to give you an estimate of how much you should be making based on your expertise and industry. To increase your chances of reaching a mutual understanding with your boss, determine a reasonable, fair salary range to communicate with them.

Step 3: Schedule a meeting

Timing can make a big difference in how your negotiation efforts go. For example, if your team has an important deadline coming up, you may want to wait until it passes before speaking with your manager.

Of course, there will be no such thing as the perfect time to ask for a raise. However, some periods will certainly be worse than others.

Step 4: Start with your higher number

As we’ve seen, you need to know the exact salary range you’re aiming for prior to entering your meeting. Making a specific request will show your manager that you have carefully thought about your situation and taken steps to arrive at an informed conclusion.

Instead of sharing your target salary range, however, you may be better off stating the number at the higher end of your scale. Doing so will earn you some wiggle room: if your employer counters with a lower figure, you’ll have some room to push the figure towards the middle of your range.

Step 5: Justify your request

Let your manager know that you have done your research and determined the average salary range for professionals with your qualifications and expertise. Then, be sure to remind them of your own performance and achievements: you may have consistently managed projects that drew positive feedback and exceeded expectations, for example.

If you’ve also taken on additional responsibilities since the last time that you had your salary reviewed, mention this as well. After all, it’s only fair that you’re compensated for successfully carrying out extra duties.

Step 6: Be ready for counteroffers

In a perfect world, employers would be handing out pay raises, no questions asked. But that will hardly be the case when you bring up the topic.

Knowing how to respond to counteroffers effectively is a vital negotiation skill. It requires active listening, quick and accurate processing of information, and the ability to manage your emotions so that you’re reacting calmly and rationally.

If you don’t agree with what’s being proposed, reiterate your value gently but firmly. If your boss won’t budge, request an alternative: a shorter timeline for your next salary review or additional benefits, for example.

Step 7: Be prepared to answer difficult questions

Besides asking you a very direct “Why should we give you this pay increase?”, your manager may press for other answers, too.

For example, they could inquire about any job offers you may have received. Or they may ask if you would be willing to take on additional responsibilities should you be given your pay increase. Finally, they may ask how you would respond if they weren’t able to give you a raise at this moment in time.

Reflect on these questions in advance so that you’re not caught off guard!

Step 8: Stay on top of your emotions

It can be disappointing to have your request rejected by your manager. This is especially true when you’ve been going above and beyond to prove your commitment to your company, and it can be even more disappointing if you’re also struggling financially.

Becoming (visibly) angry or upset, however, isn’t going to change the outcome of your discussion with your boss. If anything, it can harm your relationship.

Staying calm regardless of what they say to you will demonstrate confidence, emotional maturity and acceptance on your part. This is important if you’re hoping to try negotiating again in the future!

Step 9: Consider the bigger picture

Before agreeing on anything, take a moment to reflect on what has been said. Your boss may have given you an alternative — additional paid leave and the option to work from home more often, for example.

While this is not the same as getting a raise, working remotely can translate into fewer hours stuck in traffic, less money spent on lunches and coffee, and more time with loved ones. This may just be sufficient in boosting your work satisfaction and work–life balance until your next salary review.

Step 10: Get it in writing

Once you have reached a mutual agreement with your boss, request that the terms are reflected in an updated copy of your employment contract.

Upon leaving the meeting, consider sending them an email to quickly summarize what was agreed upon, and thank them once more for their time and the offer they made you.

Raise negotiation tactics

The following tactics can improve your chances of reaching the outcome you’re hoping for:

1. Don’t rush into quoting the salary

When negotiating, we’re eager to make our point and be understood by the other party. Unfortunately, this can cause us to rush, which makes it likelier to blurt out the wrong thing, falter, or fail to consider the other person’s perspective — which may be just as valid as ours.

Instead, pay attention to your pace. Your manager has blocked out a timeslot for you, so there really is no rush. Start by going over your achievements and contributions, and push any mention of your salary aside for the time being!

2. Use positive language

Replacing negative sentences like “I’m not happy with that” with positive ones, such as “I would prefer this instead”, can communicate friendliness, flexibility and an open mind. So, as much as possible, try to phrase things in a way that focuses on the positives!

In addition, try to maintain a tone that hints at being appreciative throughout the exchange. Even if you don’t get exactly what you’re hoping for, it can help alleviate any strain placed on your relationship with your manager, meaning you can try negotiating again more easily at the next opportunity.

3. Don’t forget body language

Body language is powerful, so much so that it can negate the words leaving your lips. If you’re using the sort of vocabulary that conveys patience and flexibility, yet your arms are crossed, your jaw is clenched and you’re avoiding your manager’s eyes, they will “listen” to your stance more than your sentences.

Instead, try to sit up straight and maintain eye contact, keeping your shoulders level and your arms and legs uncrossed. The occasional smile and nod can also indicate friendliness and understanding, which your manager will appreciate.

4. Use silence as a tool

Used sparingly and at appropriate times, keeping quiet can better your chances of arriving at the agreement you’re hoping for.

Firstly, remaining silent helps you absorb and process the information that’s presented to you, whether that’s a proposed salary figure or an alternative means of being compensated, such as a bonus.

The more time you buy yourself to think, the more accurately you can identify windows of opportunity to steer the conversation back towards what you’re aiming for.

Plus, if the first counteroffer you get is significantly lower than what you had expected, a momentary pause can hint at your dissatisfaction and cause your manager to reconsider what they just said.

5. Leverage the power of other offers (carefully)

While it’s fine to mention an offer from another company during your salary negotiation, make sure that the information you communicate is accurate. That is: don’t exaggerate the amount you have been offered in hopes that your boss might offer you an even higher salary, because they may want to see some proof.

Also, take care so that your mention of another offer doesn’t come across as a threat. “If you don’t give me this raise, someone else will!” is never how you want to wrap up your chat with your boss.

Example scripts for negotiating a raise

Let’s look at three scenarios that could unfold during the salary negotiation process:

When the higher number is accepted

Employee: Thank you for taking the time to meet with me, Grant!

Manager: No problem at all.

Employee: As discussed, I called this meeting to talk about my compensation. I have been with the company for three years now, a time during which I have consistently met my targets and eagerly looked for opportunities to take on additional duties.

Manager: Indeed — we greatly appreciate your effort and high standard of work.

Employee: Since my last salary review about a year ago, I have successfully launched and managed our affiliate marketing program, improving our sales and online engagement. This is why I believe that a 10% increase in my salary would be fair.

Manager: I agree; your work ethic and commitment have been admirable. I am therefore happy to offer you the 10% increase you rightly deserve.

Employee: That is fantastic news, I really appreciate it. Would we be able to have this change reflected in my contract?

Manager: Absolutely, I will arrange for that to be prepared by the end of this week.

When an alternative is agreed upon

Employee: Hi, Melissa. I appreciate you making the time to discuss my salary.

Manager: You’re welcome! So, talk me through your thoughts.

Employee: I requested this meeting as my last salary increase was nearly two years ago. I understand that everyone has been on the same boat, as things had been challenging for our startup financially.

Manager: Correct — although we have seen significant improvement over the last six months. Your consistent effort as our lead developer has played a big role in that.

Employee: Thank you. As your feedback has been positive, and with things looking up on the revenue front, I wanted to ask whether a salary increase of 10% would be possible.

Manager: I’m afraid an increase of 10% would be difficult to arrange. However, I am happy to give you a 5% increase and a bonus in recognition of your hard work.

Employee: I appreciate that. Would you also be willing to hold my next salary review in 6 months’ time instead of 12?

Manager: Yes, that can also be arranged.

When a job offer is mentioned

Employee: Hi, Todd. Thank you for agreeing to meet with me.

Manager: Of course. Tell me what’s on your mind.

Employee: Firstly, I would like to thank you for all the training and support you’ve been providing. Working here has helped me grow as a professional, and I always strive to give back. Over the last year, I was able to meet or exceed my targets while also assisting in areas that have not been my direct responsibility. Based on some salary research I did, I believe it would be appropriate to review my compensation so that it better reflects my contribution and expertise.

Manager: I understand where you are coming from. May I ask if there has been any other job offer on the table for you?

Employee: There has, from ABC Company.

Manager: Can you tell me more about the offer?

Employee: I was offered a monthly wage that is 6% higher than my current salary plus the chance to work on a hybrid basis, which would allow me to spend more time with my children.

Manager: As we prefer our teams to work in-office, we could offer you a pay rise of 10%. We would really like for you to stay.

Employee: Thank you, I appreciate that! Could I have until the end of the week to consider your offer?

Manager: Sure. Let’s catch up on Friday morning.

Mistakes to avoid

Some mistakes to avoid during your salary negotiation include:

  • Making unrealistic demands. A raise of around 3% keeps your compensation in line with the rising costs of living. Aiming for a 5–10% pay increase is perfectly reasonable (and even 10–20% can be justified).
  • Comparing your salary to your coworkers’. Your salary negotiation needs to focus on what your employer is paying you in relation to what you bring to the table.
  • Being aggressive. Staying on top of your emotions is essential for successful negotiation.
  • Being entitled. There’s a fine line between demonstrating confidence and coming across as arrogant. Know where it lies, and tread carefully!
  • Using ultimatums. Even if you have another job offer, blackmailing or threatening your current employer is only going to reflect badly on you.
  • Bringing up personal financial issues. Sadly, many people are stressed about money. Rather than delving into that, keep the focus on your work performance, achievements, and the average salary range for people in similar roles as you.

Key takeaways

In the words of actor Luke Roberts, “Conflict is good in a negotiation process. It’s the clash of two ideas, which then, all being well, produces a third idea.” Indeed, even if you don’t get what you initially had hoped for, you may still end up better off than before.

Remember:

  • Pick a good time (a period of relatively low stress) to initiate the negotiation process.
  • Before meeting with your boss, do your research to determine your worth, considering your educational and professional achievements.
  • Working on your communication and emotional regulation skills will always come in handy in a negotiation setting.
  • Always get things down in writing to eliminate misunderstandings.

Have you negotiated your salary or benefits before? What was the outcome, and what helped you achieve your desired goal? Share your thoughts in the comments section!

This article is a complete update of an earlier version originally published on March 11, 2019.