Annual review: our 6 Tips for tackling the salary issue and deploying your negotiation strategy!
The annual interview at the end of the year is more than just a formality. It's an opportunity to formally take stock of your expectations, needs and feelings, and to address the famous question of your salary.
As Jim Rohn, famous entrepreneur and author, points out, "Your salary is what you get paid for following orders. Your wealth is what you get paid to think." This is where employees and employers can constructively discuss compensation and establish fertile ground for negotiation.
In order to best prepare you for thisdecisive step, discover our six key points that will guide you in negotiating a pay rise during your annual performance review.
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1 - Know your market value
2 - Identify your added value for the company
Make a detailed inventory of your skills and achievements, drawing in particular on the minutes of annual appraisal interviews. As businessman and investor Warren Buffett points out, "The best investment you can make is in yourself." Highlight your added value to the company by demonstrating the positive impact your contributions have had on its objectives. For example, if you've significantly increased your team's sales or implemented more efficient processes, this can be highlighted. A thorough understanding of your added value will strengthen your position during the negotiation.
You can also address your wishes for development, particularly through training, if you have areas you'd like to explore further, skills you'd like to develop to grow professionally?
Did you know? Our training center Alphéa'Cademy accompanies you in your rise to competence with its panel of more 150 tailor-made training courses.
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Also read:
Ten indispensable qualities an executive must master!
4 effective methods for finding an executive job
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3 - Determining your salary range
Clarity is crucial in any salary negotiation, hence the importance of establishing a costed proposal in the form of a range. As Jack Welch, former CEO of General Electric, puts it, "Your salary keeps you going. Your benefits keep you here." As Jack Welch points out, a number of elements can come into play in negotiations (telecommuting, bonuses, RTT...).
When it comes to your compensation, delineate a minimum acceptable salary and a maximum conceivable salary. This pragmatic approach provides a solid basis for discussion, avoiding unrealistic expectations.
The costed proposal in the form of a range is essential for a good negotiation. The salary range represents the gap between the minimum salary and the maximum salary awarded for a position. The aim here is to set a consistent range. In other words, the salary you would accept and the maximum amount you think you can claim. Bear in mind that in the case of renegotiation, it is rare for the progression envisaged to exceed 10 or 15% of the remuneration gross reference. |
4 - Find out about the company's financial health
Knowing the company's financial health is a major asset. Analyze internal communication to understand the current situation. This information is invaluable for choosing the right moment for negotiation. If the financial situation doesn't allow it, wait for a more propitious moment by capitalizing on your involvement within the company.
5 - Don't use personal arguments when asking
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6 - Conducting successful salary negotiations
For starters, avoid formulating a request for a salary increase by e-mail. Instead, schedule a meeting and take the time to prepare for your meeting so you don't forget any details. Remember to respect the hierarchy and procedures specific to your company.
The way you approach the negotiation greatly influences its progress. Prefer direct communication by organizing a dedicated meeting rather than formulating your requests by e-mail. Prepare thoroughly, respect the hierarchy and be transparent about your salary range from the outset to save time.
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