Money is on everyone’s minds these days. Our lives are costing us more; even though January’s year-over-year increase of 5.4% was likely an anomaly, 2022’s annual rate will likely be higher than the 2.6% we saw in 2021. Surveys report that UK employers are set to offer their employees an average 2.9% in 2022. The picture is rosier in some sectors; increases in the technology sector, for example, are nearer the 3% mark.

With all that in mind, are you thinking of asking for a pay rise? Or perhaps asking for a larger one that’s been offered?

It’s a discussion that very few people look forward to. Money is a difficult topic at the best of times for most of us. But with some planning and preparation, you can put yourself in a good position to negotiate.

 Choose your Timing

What you’ll say is critical, of course. When you’ll say it is nearly as important. There are two aspects to consider when picking the right time to make your request.

The first is your own performance. To increase the odds of getting the increase you’re hoping for, make sure you’re asking at a time when your abilities in the job are clear, when you can show how you’ve gone above and beyond the minimum expectations, and when your tenure with the company (and the time since your last increase) is of an appropriate length.

It’s also important to consider timing from the organisational perspective. If the company is struggling financially, a request for a pay rise is not only unlikely to be successful, it also may be rubbing salt in a painful wound that your manager is already nursing. In this case, it may be better to hold off until the financial picture is rosier. If the company is doing well, it still pays to time your request with the annual budget cycle. If budgets have just been set for the year, your manager may not have as much flexibility as he or she would when the budgets are still being developed.

Plan Ahead

Before setting a meeting to talk about an increase, take some time to build your case.

The first step is to understand your value. You’ll want to go into the meeting with a range in mind; that’s the first question you’re likely to be asked in a negotiation, and you can’t be caught unprepared. Research salary ranges for your kind of job and company, and through that research determine your ‘bottom line’ – the number that you are determined to reach as a minimum – and an aspirational top figure to shoot for.

When determining your range, don’t overlook non-monetary aspects of compensation. If you’re not granted a salary increase – either at all, or at the level you’re hoping for – there may be other things you could propose as a compromise. You might consider a few more days of vacation time, for example, or perhaps more flexibility in remote or hybrid working arrangements. When it comes time to negotiate, having these cards in your back pocket can provide alternatives for your manager to consider other than a flat ‘no’.

Next, support your request with the business case. Although your own personal financial needs are likely foremost in your mind, the business case must be based on the value you bring to the company. In doing this, people tend to focus on their performance in the recent past. Certainly pointing out the ways in which you’ve been performing above expectation is important, but don’t only look to the rear-view mirror. A manager doesn’t necessarily want to pay you more for what you’ve already done. They’re more willing to pay for increased contributions and performance in the future. Consider and include a few forward-looking aspects as part of your business case.

Make your Pitch

When you’ve put together the aspects of your business case, it’s time to practice. Don’t plan to go into the meeting with a presentation, though; the meeting should be a conversation. The part to practice is your introduction, the first few things you plan to say. In addition to starting off with a well-structured intro with the key points you most want to make, this practice will help you move smoothly through the part of the meeting when you’re most likely to be anxious.

Finally, set the meeting. Don’t ambush your manager by walking into their office and expecting the meeting to take place then. Ask for the meeting ahead of time, being clear that you want to discuss your compensation. This will give your manager time to reflect and plan, which will make the meeting go much more smoothly.

Finish Strong

When planning for the meeting, plan also to be prepared for any outcome. If you’re granted the increase you were hoping for, that’s fantastic. Your manager may ask for some time to consider it, or they may say no. Be prepared with a ready response for any of these scenarios, and follow up points. If you weren’t granted the increase you wanted, for example, you should ask for feedback. What, specifically, can you do to demonstrate more value to the company and position yourself for an increase next time? If the ‘no’ was more about timing than it was about your own performance, when would it be appropriate to ask again?

Lastly, be ready to finish the meeting in an entirely professional manner. No matter the outcome, don’t apologize for asking. Compensation discussions are important in every employer-employee relationship; you never have to say sorry for making a well-supported request. Do say thank you, though, once again no matter the outcome. Show appreciation for your manager’s time and consideration (even if you’re feeling more disappointment than gratitude). Ending the discussion with consummate professionalism will leave a positive impression and pave the way for a more successful outcome the next time.