Archive for June 2008

I write a lot about how to eliminate expenses and reduce the OUTGO from one's home economy, but there is another side to the equation and that is INCOME.  INCOME – OUTGO = EXACTLY ZERO works a lot better when the INCOME is increased!

This series is focused on one key way that INCOME can be increased and that is to Negotiate A Pay Raise.  In each part, I will be sharing how I have successfully negotiated pay raises in the past.  I hope this series helps you do the same!

Part 5 – "Negotiation"

Once I received a response from my manager, I took time to compare it to what I requested.  If it was everything I asked for (it never was), I obviously would have accepted it.  Since my offers were not exactly what I requested, I prepared for a negotiation.

As I entered the negotiation, I knew the following things:

• Which items were the most important to me, and which ones I was OK with leaving alone
• Exactly what I was willing to settle for
• The silent time was over – I was going to leave the meeting with an answer

Negotiations are tricky.  Every one has been different for me.  I have tried the compromise path.  I have tried the "I'm sticking to my guns" and "I refuse to budget" path.  The bottom line is that I knew exactly what was needed to call this a successful negotiation for me.

What I do know is that because I had done my homework, I was in a strong position to negotiate and that resulted in a successful pay raise each time.  One of them was immediate and another took six months to be implemented.  Both were worth it. 

So this concludes the "Negotiate A Pay Raise" series on JosephSangl.com.  If you are going to make the big ask, good luck and let me know how it goes!

Readers:  I know that there are several business managers reading this site.  Would you share your thoughts about this series from an employer's/manager's perspective?

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I write a lot about how to eliminate expenses and reduce the OUTGO from one's home economy, but there is another side to the equation and that is INCOME.  INCOME – OUTGO = EXACTLY ZERO works a lot better when the INCOME is increased!

This series is focused on one key way that INCOME can be increased and that is to Negotiate A Pay Raise.  In each part, I will be sharing how I have successfully negotiated pay raises in the past.  I hope this series helps you do the same!

Part 4 – "Receive The Response"

There WILL be a response.  It may not be the one you expected.  It may be way more than you expected (it happens!), or it may be way less than you expected (this happens too!).  Either way, there will be a response.

The best way to respond?  SILENCE

This is a negotiation.  SILENCE makes people uncomfortable.  If a manager knows that their response is less than reasonable, silence will allow them to rethink their position.  Many times, the manager has been provided some leeway in this discussion, and they have been authorized to adjust the numbers some to ensure an adequate and final response is obtained.

SILENCE has been my friend twice.  Both times, it resulted in a substantial increase beyond the initial offer.

Once the offer has been extended and appropriate silence has occurred, thank them and tell them that you will need twenty-four hours to review the offer (if it makes sense). 

This is Part 4 of a series featured at JosephSangl.com – "Negotiate A Pay Raise"

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I share my journey to achieve financial freedom and teach personal finance tools in my book, I Was Broke. Now I'm Not.  Check it out!

I write a lot about how to eliminate expenses and reduce the OUTGO from one's home economy, but there is another side to the equation and that is INCOME.  INCOME – OUTGO = EXACTLY ZERO works a lot better when the INCOME is increased!

This series is focused on one key way that INCOME can be increased and that is to Negotiate A Pay Raise.  In each part, I will be sharing how I have successfully negotiated pay raises in the past.  I hope this series helps you do the same!

Part 3 – "Make The Ask"

After you have "Done Your Homework", it is time to ask for the pay raise.  Before I review that part, I want to share a couple of things to think about.

If you have ever ridden on a jet, chances are you have picked up the airline's magazine and seen the advertisement from Dr. Chester Karrass for negotiating seminars.  There is a brilliant statement that stands out to me every time I see that ad.

His statement?  You don't get what you deserve.  You get what you negotiate.

Ponder on that thought for a minute.

It is important to understand that many things are negotiable including pay, benefits, time off, work location, and work hours.

As you prepare to ask for the raise, be sure to decide on what you will ask for.  

Remember that this is a negotiation.  Negotiating means that there will be give and take.

So now you have done all of your homework and decided what you are going to ask for.  It is time to take a deep breath and have the conversation with your manager.  Each time I have had this discussion, it has been a sidebar discussion and not a planned meeting.

Keep in mind the following items as you ask for the raise:

• Present your case clearly and succinctly.  I presented my case in less than three minutes every time.
• Be CLEAR with your requests.
• Do not make threats such as "Give me this raise, or I am leaving to the competitor."
• You can make statements (if they are true) such as "This request is very competitive with the marketplace."  A manager will quickly understand that you have done your homework.
• Your manager will probably not be able to give a raise immediately and will have to discuss with his/her superior.  This will take a little time.
• After you have made your case, SHUT UP!  You have said what you needed to say.  Let there be silence.  Silence is golden.
• When the meeting is ending, ask when you can expect to receive a response.
• Thank them for considering your request.

When the meeting is completed, take thirty minutes to write down everything that was discussed in the meeting.  This will allow you to review what just happened and can be helpful later when trying to recall exactly what was talked about.

This is Part 3 of a series featured at JosephSangl.com – "Negotiate A Pay Raise"

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You can receive each post from JosephSangl.com via E-MAIL by clicking HERE!

I write a lot about how to eliminate expenses and reduce the OUTGO from one's home economy, but there is another side to the equation and that is INCOME.  INCOME – OUTGO = EXACTLY ZERO works a lot better when the INCOME is increased!

This series is focused on one key way that INCOME can be increased and that is to Negotiate A Pay Raise.  In each part, I will be sharing how I have successfully negotiated pay raises in the past.  Here's to this series helping you do the same!

Part 2 – "Do Your Homework"

The key to any successful pay raise negotiation (or any negotiation for that matter) is to have completed your homework.  Information is absolutely POWERful!

• Be sure you have completed Part 1.
• Research comparable positions in the area to see what they pay (Salary.com is great, Monster.com is OK).
• Understand the demand for your skill set, education, abilities, and capabilities.  Job boards, on-line classifieds, newspaper listings, and recruiters are good places to start.  If you work for a larger company, be sure to check out your companies job postings and the pay scales.
• It might make sense to go on a couple of job interviews just to understand what education and skills are being sought by employers.
• Identify specific projects and activities that you have led or participated in that resulted in substantial benefits for your organization.  Objective and measurable results speak much more than subjective "kind-of sort-of possibly vague stuff".   If you work for a for-profit company, show how your efforts have led to cost savings, improved sales, improved productivity, and profits.  If you work for a non-profit organization, focus on how your efforts have furthered the organization's mission/vision/goals.
• Identify the upcoming projects and activities that you will be leading or participating in that will result in substantial benefits for your organization.

For me, it has always been extremely helpful to write my thoughts down over a one or two week period.  This ensures that I have been able to effectively think through the above items and organize the data into useful information for Part 3 – Asking For The Raise.

This is Part 2 of a series featured at JosephSangl.com – "Negotiate A Pay Raise"

Read recent posts 

You can receive each post from JosephSangl.com via E-MAIL by clicking HERE!