Don't be shy when negotiating a pay raise

Don't be shy when negotiating a pay raise

Don't be shy when negotiating a pay raise

Talking about compensation can be nerve wracking, but most employers expect it, especially in Houston’s strong job market.

“As the job market continues to grow, employees have more negotiating power,” said Caroline McGlaun, the Houston-based regional vice president for Robert Half International, a professional staffing and consulting services firm.

So when negotiating your starting salary, or asking for a raise, don’t be shy.

McGlaun walked me though the best strategies for taking on this potentially awkward or scary scenario.

First, do your homework, she said. Find out what is the fair, standard pay for someone in your position and with your amount of experience. Current resources such as industry reports and Department of Labor data can help with this. Robert Half International, McGlaun’s firm, also puts out free, detailed reports on salaries in many industries.

Also, talk to colleagues in the profession or recruiters for insights into current trends. And research questions such as whether the firm is growing. Are there staff reductions? How is the industry growing?

Knowing this information can give you bargaining power, McGlaun said. Plus, you’ll show the employer that you take initiative by doing the research and making an effort.

If you’re looking for a raise, start the conversation by asking for a performance review. You will have a good snapshot of your contributions to the organization. Ask about your work performance, highlight your contributions to the organization and your impact on the bottom line. This will give you a segue into the salary discussion.

When you pop the question, be confident and keep the statement positive. Don’t say, “I don’t feel that I’m being paid fairly,” McGlaun said.

Instead, McGlaun suggests something like, "Based on research of these sources, I’ve found that skillsets such as mine typically earn [insert dollar range]. I’d like to know how I could get closer to that."

This phrasing has several benefits. “By asking employers what they think you can do, you will learn how you can increase your salary and help with professional development,” McGlaun said.

Your boss will either give you some suggestions on how to improve or realize that your payscale isn’t competitive in the industry.

If you’re negotiating a signing deal, weigh more than just salary in negotiations, she said. Consider all aspects of the job, including responsibilities, advancement potential and benefits.

Next, get the agreement in writing. Ask your employer to draw up a letter with salary and other special arrangements to prevent misunderstandings.

Last, always be gracious, professional and courteous no matter what happens in the conversation.

Have a backup plan

McGlaun also offered some tips for what to do if you're deadlocked in the negotiation.

Before you begin, figure out what items are most important to you, like benefits or flexible work schedule, and be prepared to give in on the less critical ones.

No matter how far apart you’re sitting, keep the door open.

If an offer is made that is less than you think it should be, point it out politely. Counter it by saying, “Here’s what I would propose based on research,” McGlaun said.

If you’re deadlocked, to break it, agree to a salary with a contingency plan, such as a performance review in six months. Or compromise in other areas, like vacation.

Again, McGlaun said no matter what happens, always be professional. It’s not what you ask for but how you say it.

Do you sit on the other side of the table? McGlaun has tips for employers, as well. Here's what to do if you think your top employee might be jumping ship.

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