When thinking of reasons to ask for a salary increase, there seem to be countless. Every year, the cost of living and the cost of care increase, for example. In negotiations, however, it depends not on outside factors, but on your performance and making the right arguments. Can you prove that the success of the company is influenced by your commitment and performance? Is the team you lead more efficient, more motivated and generally happier since you’ve been the boss? Consider these questions and formulate convincing arguments to present to your boss if you wish to demand more salary in 2018.
Demand more salary – only with good work performance
Since employers want to keep their personnel costs as low as possible, they seldom offer a salary increase voluntarily. So most of the time you have to make an appointment yourself for a salary negotiation.
As an opportunity for discussion, you should first specify your performance and prospects when making an appointment, instead of immediately proposing a salary increase.
Negotiate cleverly. The basis of a salary negotiation is only your work and performance; no external reasons, such as dependent relatives or the birth of a child, should be cited as reasons for an increase. The only thing that matters to the senior manager is your concrete contribution to the company’s success, which can be proven with facts and figures.
With the following four arguments, you can best prove your contribution to the success of the company:
You contribute to the cost savings of the company
- Negotiating favorable terms with suppliers
- Taking over activities that were previously done externally
- Improved flow of goods
- Use of cross-departmental synergies
- The introduction of new, time-saving work processes
You increase the revenues of the company
- Development of new business areas
- Regional expansion of the company
- Acquisition of new major customers
- Winning competitive contracts bids
You take over…
- Special tasks and special projects
- General management responsibilities
- Management of a project
You expand your qualifications for the benefit of the company
- Acquisition of expert knowledge in project management
- Acquisition of know-how in the field of new and promising trends
- Learning a foreign language that promotes the company’s regional expansion
- Learning communicative skills to deal with difficult customers
Demand more salary without exaggerating
Before a salary negotiation, you should be aware of what realistic amount you can ask for without exaggeration. So it’s worth finding out:
- How much is earned in comparable positions at other companies, using our salary calculator
- What the salary situation in the industry looks like
- Whether there are regional salary deviations
Experience has shown that a four to seven percent increase in salary can be demanded. An increase in salary of ten percent will predominantly only take place if one has made a significant contribution to the company’s success.
Demand more salary at the right time
Not every moment is suitable for a salary negotiation. Good times include:
- When the company is doing well economically
- One to two years after the probationary period
- After the probationary period, when both parties have agreed to have a salary negotiation
- After successful completion of a project
- If the employee has taken on more responsibility
- If the employee has increased his or her capacity since the last increase
- When the leader is the most responsive.
Asking for more salary after an initial refusal
If your request for an increase has been refused or postponed by your supervisor, don’t resort to attacking or threatening to denounce him/her. Instead, ask about the reasons for the rejection or postponement, and inquire as to what conditions need to be met for a salary increase. Then, after working on the given suggestions, arrange a new appointment for a salary negotiation.
You can also give your supervisor (as well as a headhunter) the opportunity to increase your salary in a more creative way – a company car, company pension plan or a bonus after meeting agreed upon goals, for example.