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Take a hike: The 2023 guide to asking for a raise, and getting it
Salary negotiations are tricky. Don’t shy away from a good haggle, even in the job you’re in. You’re totally worth it
In the corporate world, it’s always hiring season. Existing employees leave (or are politely shoved out). New projects require new teams. Resumes pile up. Interviews go on and on. Salary negotiations are hush-hush. Somewhere, a candidate ends up getting a raw deal.
In India, women workers earn less than men for the same jobs. Those in smaller towns take home lower pay than their big-city counterparts. For the first few years of their career, at least, graduates from top-rung colleges command better salaries, even without work experience.
In the European Union, it is now mandatory for companies to disclose all salaries paid by them. In the US, the Transparent Pay Law is valid in New York state, Colorado, California and Washington. Employers there must, by law, inform candidates about the salary ranges and job descriptions, to close gender and racial wage gaps.
India isn’t following suit any time soon. So, it’s more important than ever to negotiate for better pay. Because there is always wiggle room when it comes to talking money.
When applying for a job.
Stalk dream companies online, not old friends. Read up on the products, services, culture, mission, senior management and recent news within the company. Brush up on the annual reports to know exactly how a company operates and rewards its people. “Crucially, understand the role you are applying for, so your responses show how your experience and skills align with the job requirements,” says Leena Wakankar, chief human resource officer at Mumbai’s ASK Group.
At the interview.
Dress well, arrive on time, look interviewers in the eye, smile and appear confident, so there’s less room for them to cut corners. Hiring managers ask behavioural questions to figure if the candidate fits the role and the organisation, says Farzeen Khan, chief human resource officer at Being Human. “Give super specific examples of the value you have added to prior jobs,” Khan says. “Understand the competitive position of the company in the industry. Use this information to figure how much the company can pay.”
Companies pay more for specialised skills, Khan adds. Consider finishing a course when serving notice at the previous job. And build up a strong bank of former supervisors and team members as references, so it seems like you’re best person they’ve met.
The money discussion.
The key is to seem excited about the company but not too eager. Take into account a move to another city, a new office location, flexibility, timings and impending promotions as a salary offer is made. Counter offers are typically 10% to 50% higher, depending on a candidate’s recent achievements and the new role. “Discuss salary expectations early in the process,” says Wakankar. Remember that it doesn’t all have to be a base amount. If an employer can’t meet a counter offer, “discuss other forms of compensation such as guaranteed bonuses, stock options, and other benefits.”
Regardless of whether the job works out, don’t burn bridges. Decline gracefully and be ready to walk away. It keeps the doors open for another opportunity later.
At appraisal time.
Annual raises range from 7% to 10%, with bigger rewards reserved for exceptional work, and the company’s own success. To haggle better, set up a meeting with a supervisor. “Go armed with proof that your efforts have helped the company meet their objectives, even if your work has reduced expenses or the time taken to complete a project,” says Khan.
Timing matters. Employees who’ve stuck on for two to three years demonstrate stability and are better placed to ask for greater responsibilities that lead to better pay. Job switches on the other hand, can be positively presented if they can be “aligned to personal and professional goals”, adds Wakankar.
A good argument to make is if there has been an increase in responsibilities or work completed outside of the initial job description, especially if you are filling a crucial role left vacant by a colleague. Prepare for counter arguments, hesitation and concerns. “Be open to other forms of recognition, such as a salary change without a promotion,” advises Khan.
In many teams, unmarried or male members are asked to stay back or work extra without compensation. No company wants to be seen as discriminatory. But it’s tricky territory, says Wakankar. “Document the instances and request a private conversation with your reporting manager,” she says. “Make it clear that your personal time and space need to be respected. If the problem persists, speak to HR.” If nothing works, consider moving to a firm that is more equitable and mention in your exit interview that you’re moving for fairer compensation.
What not to do.
Don’t quote how long you’ve been in a company unless you’ve grown in it. Loyalty pays only if there is productivity.
Don’t prepare an “I need” narrative. Switch it up to “I deserve”. Humanitarian reasons work against a worker in the long run.
Don’t be overenthusiastic. Employers view it as desperation and offer less. Show genuine interest in the position and the firm. Relay the idea that the money is secondary.
Don’t expect rewards for temporary tasks. Filling in for a colleague for a few months rarely warrants a permanent hike. Ask if the responsibilities can become a permanent part of your role, before discussing money.
