As an employee, you may feel hesitation to ask for a raise, and it's not just your problem, most of are going through the same. The good news is it's possible in every company; be it's a bad or good company though you may feel a little bit pressure at the offer stage. However, most of the candidates fail to ask for what they deserve, and it may affect their performance due to unsatisfaction. There are two things to remember while negotiating for a raise; the company who doesn't listen to the employee is bad for sure, and secondly, the employee has to justify his/her negotiation. The former depends on the management whereas the later is on your hand and here, you should be careful while asking for it. If you are doing it for the first time, it would be like fighting a battle without any preparation, and in case you don't know; every serious employee deserves a hike for their efforts. The discussion is not about the usual increment that companies pay to adjust the market cost; it's about the reward for your efforts and contribution.
The million dollar question is how to ask for a raise? Here are 4 ways to win in a salary negotiation deal as an employee.
Make a better pitch
A pitch is suitable for raising funds or selling something; if you think so then you are wrong. Whenever you demonstrate your achievements, by default you act like a salesperson because people do it for a reason, and it could be anything; like improving their image in front of others or getting something done. Once you start trying to impress someone is itself a part of selling. Just like you mention all your achievements in the resume, you should prepare a list of your contribution from the beginning of your joining. If you didn't do then start doing it immediately and make a list of everything you contribute from the day one which includes your role, how you save company cost by using your additional skills, your contribution for other projects, how you boost company's sales and marketing campaigns. Make it detailed for a clear explanation and if your positions changed during the tenure, mention it how you did in these periods. If you obtain a professional degree which could help your company; don't forget to mention it and also try to gather all the positive feedback from clients and colleagues that you get for your performance. Invest some time to make it professional just like you are doing for a sales pitch as it will represent your achievements. Remember, companies want results, not your efforts, and you have to prove that you are eligible for a good pay raise. Your contribution decides your pay raise, and here, you must be careful of everything.
Compare the market rates
Sometimes most of the people make a mistake by telling it from the beginning and left the money they deserve and of course, who wants to pay more than you ask? The best way is to wait for it till the discussion and do a research about it and compare with others working in your field so that you can have an idea for negotiation.
Pick an odd number
Have you ever noticed most of the companies don't round off their products' and services' price? It's a psychological trick to attract customers as the round off price looks more than an odd price tag. For example, INR 50 looks high, but 49 is less according to their marketing strategy, and here, they can claim that the product is less than fifty rupees. Same trick you can use while negotiating with the company though in a different way. An odd number always gives an impression that you did your homework whereas the round-off number may not make the same impact. If you are familiar with the Indian style of bargaining, an odd figure will always become round-off during a deal. It depends on the performance also, and if you are excellent at your job, the company may agree with your demand.
Give them a range
According to a study, a deal works better if you give a price range rather than a fixed number depending on the circumstances. For example, if your salary is INR 3.5 lakh per annum and you are looking for a raise; instead of asking for a fixed number give them a range of 12 percent to 14 percent.
The bitter part: If your company refuse
The worst nightmare for an employee is to be turned down by the boss, and it happens in most of the companies, but first, you need to identify the real reason.
Sometimes, the company doesn't have enough funds to give a salary hike, and in this case, you can ask for a higher position to negotiate in the future once the fund is available. In this scenario, if they impress with your work, the chances of offering an upgrade position is more, and in the future, they may raise your salary too.
In the second scenario, if the company refuses even after having enough funds, ask them what you should do for getting a raise and do it. By completing their target within an assigned period or reaching near it will create an impression that you are a deserving candidate and are adding value to their organization.
If they still refuse to give a raise in both cases, it's time to change the option and join in an organization where you will get respect for your work.