Beyond smart saving and investing, one of the best ways to increase your net worth is to steadily increase your income.
And with annual performance reviews on the horizon and companies finalising their budgets, now may be just the time to put in your request for a raise. While negotiating for more money is often scary, following these simple strategies can help you get the pay increase you deserve.
Ask for an odd, extremely precise figure.
While most people ask for a rounded number, say a 5% increase or $US5,000 bump, you may be better off asking for a strangely exact figure, like $US64,750. Based on research from Columbia Business School, Erin Greenawald at career site The Daily Muse says: “When employees use a more precise number in their initial negotiation request, they are more likely to get a final offer closer to what they were hoping for. This is because the employer will assume you’ve done more extensive research into your market value to reach that specific number.”
Highlight past achievements and your value to the employer.
It’s important to help your manager understand, and perhaps make the case to their boss, why you deserve the bump in pay. Rather than frame your request looking forward, Alison Green at U.S. News and World Report recommends listing out responsibilities that you’ve successfully mastered, your past accomplishments, and specific metrics of growth you’ve contributed to. It should never be about why you need the money or how your paycheck compares to coworkers, but instead “about why your value to the company has increased, and why your compensation should reflect that,” says Green.
Do not wait for the annual performance review.
According to Liz Ryan at Bloomberg Businessweek, “Managers often budget next year’s salaries months ahead of time and only deliver the news at the annual review meeting.” That means if you want more than the standard raise, you should request it ahead of your review. It might also help to time the ask to immediately follow a big achievement or successful project, so your manager will have extra incentive to keep you onboard.
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