So there’ll come a time when most graduates will reach a point in their career when they feel they want a little bit more. That little bit more being in the form of Great British Pounds – and what better way to seek that extra paper than a pay review? Whether the pay review is part of your annual appraisal, or you’ve simply requested one, you’d better have a good case negotiating for that Rolex you’re planning to buy with it.
Of course, you don’t justify WHAT you want to do with that extra money, but rather WHY you should even be considered to receive it. Thompson (2005) actuates that ‘Negotiation is an interpersonal decision-making process necessary whenever we cannot achieve our objective single-handedly.’ This means that we need to get our manager or supervisor on side and Robbins (2012) can help us do just that with his five step plan.
Step one: Preparation & Planning
Do your homework! I’m not talking about writing an essay, but work out exactly what you want. You know you want a pay rise, but by how much exactly? What’s in it for your boss? Get a figure in mind and formulate your BATNA so you can determine your goal.
Step Two: Definition of ground rules
Who’s going to facilitate the hearing? When and where will this take place? If you’d like some privacy ask to hire out one of the function rooms, rather than discussing in the staff canteen. Make sure that the other party understands the sincerity of this review – a five minute meeting won’t be enough time to build your case. Glance down at your wrist – You REALLY want that Rolex!
Step Three: Clarification & Justification
Once you’ve pitched your case, make sure your facilitator is clear on what you really want and why you deserve this salary increase. Your boss may have to report to a higher authority and if you really want your case to have any chance of success, it’s important that you explain, clarify and justify those reasons. Leather wrist strap or tortoise shell?
Step Four: Bargaining & Problem solving
So, you may not get the £6,000 increase that you were hoping for, but this is the stage where you can ‘hash it out’ – come to a mutually acceptable agreement that will leave both yourself and your manager speaking the same language. This is where your BATNA comes into play – what are your alternatives? More River Island than Rolex? Well, that’s okay – use your bargaining power to re-convene in six months and assess your pay again?
It’s also important to note that using an integrative bargaining strategy that is beneficial to both parties is far more effective in building long term relationships and could mean the difference between facilitating working together in the future, or creating office gossip over the water cooler.
Step Five: Closure & Implementation
Formalise the agreement and propose a date for your next review. Work together on how to implement and monitor your progress over the next six months. Shake hands. You’ve got a rise and even though you didn’t get your ideal figure, your BATNA helped you to define your best alternative and your bargaining influence bagged you another review. Happy days.
Personally, I want the money, the cars and the clothes. I want to be successful. If you have got Champagne dreams with lemonade money, or purely think you are worth more than what you’re being paid – have you got any further ideas on how to negotiate or bargain to increase your salary? Alternatively, have you successfully negotiated a pay review and how did you secure that rise?
This video shares ideas about the right time and right situation to negotiate a salary increase.
So, come on and share your wisdom – I’ve got my eye on a suave Oyster Perpetual…
– JR –