Why should you go into pay raise negotiations?

According to salary.com and payscale.com more than 50% of people NEVER ask for a pay raise. Both sources also claim that by NOT negotiating your salary you can end up, up to 1 mln USD behind those who negotiate regularly, by the age of 60.

• No need to be one of them…

Now, how to do it?

In a nutshell? 

1. Understand where you are: Learn where your salary is in reference to others in similar roles and the market.
2. Prepare your environment before the salary discussion: Understand how to set yourself up for success.
3. Prepare your manager’s perception of you before the salary discussion and get feedback​: Status check and setting the scene – make sure they are aware of your achievements and how well you are performing.
4. THE Salary discussion​: use phrases such as “According to our previous discussions I have exceeded the expectations from when I was hired with this salary” and definitely do NOT use: “Person X is getting this. Why am I getting less?”

If you want to get insights on each of the points above, you can check out my course on salary negotiations here. This post is about the last point “The salary discussion”. In the course there is a different example than the one in this post – just to give you more possibilities to go by.

Chat GPT fun and what to expect from your manager?

Here is a little joker: I asked chat gpt to write a script of a successful pay raise discussion between an employee and a manager.

You can check it out below in blue – just be aware – clearly ‘successful’ was read as ‘extremely optimistic’. Even though I am a huge fan of using chat GPT and am sparring with it daily, here I don’t think it was that helpful. I have never been through a talk such as the one below. (Maybe I should prompt it to be more realistic 😉 – added to my to-do-list). 

Now, why is below example not realistic in my opinion? Because the manager is handling the conversation extremely well, and seems very well prepared for it. There are managers like that of course, but if more than 50% of people never ask for a raise – then how prepared for a salary discussion can your manager be? If some half of people never negotiate, and some negotiate very rarely it is possible that your manager has never been in a pay raise negotiation before; Or had few, possibly with people who were not sure how to handle it or who arrived at the need for a meeting late when already quite frustrated with what they are being paid. Bottom line – likely your manager is not prepared or might have had unpleasant pay raise conversations in the past. Many managers are also under-trained in terms of how to handle this type of conversions. 

When reading the Chat GPT scenario my immediate thought is – I have never had such a positive conversation about it. It has not been negative either  – so don’t stress – but it also required me to manage the conversation.

Before starting the process with your manager, make sure to review your performance, prepare a list of achievements and check salary levels for your role – if you are not sure how that can be done – you can check out the course.

Below you have the chat GPT script and after that you can find mine – more realistic version. Enjoy!

Chat GPT salary negotiation scenario

Employee (Alex): Good morning, [Manager’s Name]. I wanted to have a discussion about my compensation.

Manager (Chris): Of course, Alex. I appreciate your dedication to the team. What’s on your mind?

Alex: Thank you, Chris. Over the past year, I’ve taken on additional responsibilities and completed several projects that have positively impacted the team’s performance. For example, the recent project led to a 20% increase in client satisfaction, and I’ve consistently met or exceeded my targets.

Chris: I’ve definitely noticed your hard work and the positive outcomes you’ve achieved. Can you provide me with some more details on the projects you mentioned?

Alex: Certainly, Chris. One project involved streamlining our communication process, which reduced delays and improved overall efficiency. Another initiative increased our team’s productivity by implementing a new software tool. I’ve also been mentoring new team members, contributing to their quicker integration.

Chris: Those are indeed impressive contributions, Alex. I’m glad to have you on the team. Have you done any research on the market rates for your role and responsibilities?

Alex: Yes, I’ve looked into it, and based on my research, professionals with similar skills and responsibilities in our industry are earning [X%] more than my current salary.

Chris: That’s insightful, Alex. I appreciate your dedication and the effort you’ve put into this discussion. Let me review your accomplishments and the market data, and I’ll get back to you by the end of the week.

Alex: Thank you, Chris. I really value the opportunities I’ve had here and I’m excited to continue contributing to the team’s success.

Chris: Your enthusiasm and commitment are commendable, Alex. We’ll have a decision for you soon. Keep up the great work!

[End of Discussion]

In this script, the employee, Alex, opens the conversation by expressing their interest in discussing their compensation. They then provide concrete examples of their achievements, tying them to measurable outcomes. The manager, Chris, acknowledges Alex’s contributions and asks for more details. Alex shares their research on market rates, demonstrating preparation. Chris appreciates Alex’s efforts and promises to review the information and respond. The conversation ends on a positive note with both parties acknowledging each other’s contributions and commitment.

My salary negotiation scenario

Employee (Alex): Good morning, [Manager’s Name]. As I mentioned to you I wanted to discuss something with you besides my regular tasks. Do you have a moment?

(if they are busy, stressed – assess it yourself – postpone. You want your manager comfortable and in good mood if possible)

Manager (Chris): Of course, Alex. What’s on your mind?

Now, below part stays the same. You bring proof that you have moved from the salary you got by showing examples of how much you have grown since, what you have brought to the team, how you have improved company’s/department’s performance and what new responsibilities you were able to assume.

Alex: Thank you, Chris. Over the past year, I’ve taken on additional responsibilities and completed several projects that have positively impacted the team’s performance. For example, the recent project led to a 20% increase in client satisfaction, and I’ve consistently met or exceeded my targets.

Chris: I’ve definitely noticed your hard work and the positive outcomes you’ve achieved. Can you provide me with some more details on the projects you mentioned?

Alex: Certainly, Chris. One project involved streamlining our communication process, which reduced delays and improved overall efficiency. Another initiative increased our team’s productivity by implementing a new software tool. I’ve also been mentoring new team members, contributing to their quicker integration.

Chris: Those are indeed impressive contributions, Alex. I’m glad to have you on the team. I am wondering where you are going with this?

Alex: Yes, I can imagine. I would like to discuss getting a pay raise with you. Based on my research, professionals with similar skills and responsibilities in our industry are earning [X%] more than my current salary.

Now here there might be different reactions. If your boss reacts like the chat GPT fairy tale – great. What you might also experience is confusion, stress, frustration (Please remember: you are not doing anything wrong by having this conversation – it should be seen as a normal conversation to have).

Alex: I would like to get a pay raise of XX as I believe then my salary will fit my experience and level of responsibilities. I am wondering if you would feel comfortable having a conversation about it now, or if you would like me to book a meeting with you in a couple of days?

Now, no matter which the manager chooses Alex should say ‘thank you’. What is important is to show the achievements and base the salary negotiation on that, then is crucial to move into a ‘closing’ scenario where you discuss it, don’t leave the ‘next steps’ unclear.

Now either the manager agrees in the course of discussions to the pay raise suggestion. If they don’t- don’t give up. Simply move to understanding your situation.

• Manager: We don’t have the budget right now. re-Question: when will you be able to discuss it with me?
• Manager: 
  • I see the situation differently, you are already earning a top salary for your role. 
  • Or : you would be making much more than your colleagues.. 
  • You: “thanks for your consideration. Personally, I am not relying on what the salary ranges are for this role/ I am not dependent on my colleagues salaries. I know that I have outgrown the assumptions of the role under which I was hired when my salary was set. Could you suggest a way forward?”

Last but not least: 

When you prepare well for this talk, you will know what the industry is willing to pay you. That means that you  have a lot of power in the discussion. 

The conversation should feel like a win – win to ensure successful collaboration in the future.

If you don’t succeed in it, it doesn’t define you. Take a few months, prepare well and try again.

Remember: negotiating is a skill and like any other can and needs to be practised.

The more you negotiate the less stressful  it will feel.

Best of luck!