With Christmas and the New Year fast approaching, it’s a great time to reflect and review on your last 12 months. Many Recruitment Consultants will undertake performance reviews with their Managers in the next few weeks and start to set some targets for 2020.
Interestingly, a recent survey on salary.com showed that 44% of respondents had never brought up the issue of a salary raise during their performance review.
Many Recruiters, Team Leaders and Managers approach us at this time of year and ask: “What am I worth in the market?”.
If you are thinking about asking for a base salary increase in your pre-Christmas performance review, there are 5 important things to consider.
- KNOW YOUR VALUE
As part of knowing your value, you need to have done your homework and know your exact billing numbers over the last 12 months plus any additional responsibilities you’ve taken on and benefits you’ve brought to the business.
You need to have been with your current employer for at least a year and have exceeded your revenue targets. The Golden Rule is that you need to have billed in excess of a three-time multiple of your salary package in the last 12 months before considering asking for a pay increase.
- START AT THE TOP OF YOUR RANGE
Be prepared for a for a negotiation with your Manager as they will no doubt come back with a counter offer. Therefore, I suggest you start at the top of the range that you are willing to accept so that you will have some wiggle room.
You can also consider other benefits other than just base salary. For example, it could be a lower threshold, a higher percentage commission or a more flexible working week.
- BE PREPARED TO WALK AWAY
As in all negotiations, you need to be prepared to walk away. You need to decide what you are willing to accept and what your “bottom line” is. If you are billing good numbers your Manager is not going to want to lose you which puts you in a good negotiation position.
- PRACTICE MAKES PERFECT
One important thing to remember is that the negotiation with your Manager is a collaboration and not a fight. It’s important to stay positive and not too pushy. You don’t want lingering resentment even if you are successful in getting your raise.
Therefore, you need to prepare and practice your spiel and have every scenario or outcome covered. Think of all the questions you are likely to be asked and practice your response that you’ll deliver in a precise and considered manner. If you think you’ll be nervous going into the negotiation, the more you’ve rehearsed the more composed you’ll be.
- DON’T MENTION PERSONAL NEEDS
Some of the best reasons I’ve heard for a pay increase are:
- My rent has gone up
- My child’s day care costs have risen
- My husband has just started a landscaping business and I need to cover the shortfall in the family’s income
Whilst you may get some sympathy from your Manager for any of the above reasons, they are not really valid when negotiating a pay increase. Again, at the end of the day, it all boils down to your performance over the previous 12 months and whether or not that performance warrants a salary rise.
In summary, if you aren’t successful in getting the salary increase you are after, don’t be afraid to ask for a review in six months’ time. In this situation, you need to have a very clear and written agreement on exactly what needs to be achieved over the next six-month period. That way both you and your Manager are on the same page.
In a worst case scenario, where you’ve done your research, you’ve hit all of your revenue targets and you can’t negotiate your base to your acceptable “bottom line”, it might be time to look for something new. An environment where you’ll be appreciated and adequately remunerated for doing a great job!