In this article while the title is self explanatory we begin with an illustration of an Executive appraisal and Pay hike. The Executive is slogging over a project, fighting off his fatigue and trying to complete the task within the time limit allotted to him. He appears not minding the hard work because of his perfectionist/hard worker traits in him. Came appraisal time and unfortunately those extra hours have not resulted in extra pay in the form of rewards. A thorough disappointment for the executive and for brevity let us call him EE.
EE is working in the same company at the same position for over two years. While EEâ€™s responsibilities have increased, his salary is at a standstill. He needs more money to maintain and save for a decent standard of living.
Most employees find it tough to ask for a pay raise. They are held back due to fear, apprehension and self doubt. However, if an Executive like our EE is competent and confident deserves a raise there is no reason to feel hesitant about it.
But before asking the employer an employee must find out the â€˜market pay rateâ€™ for his/her type of job as well as the remuneration paid in similar companies.
An employee should learn about his/her companyâ€™s remuneration policies and standard appraisal practices. In any good organization Merit based evaluation forms the crux of negotiating a successful pay raise.
Therefore an employee must be smart enough to prepare the relevant data and documentation like.
1. Projects accomplished
2. Cost savings.
3. Extra hours at work that he has put in voluntarily for timely completion pf projects.
4. Number of satisfied clients
5. Initiatives/solutions suggested and implemented by him.
6. Additional responsibilities and special projects that the Executive have worked on.
Supposing that the employeeâ€™s current job doesnâ€™t require him to do much of the above tasks for the given responsibilities, being capable and confident, the employee still needs a pay raise. Now he can ask his employer for additional responsibilities to justify a higher pay.
The employee must keep a specific and reasonable target in mind taking into account the benefits, bonuses, perks etc offered by his company (employer).
On many occasions, employers are not able to provide higher pays, as and when demanded.
Sometimes an employer is unaware of an employeeâ€™s contributions towards the company because the concerned authority (in short Boss) is busy caught with other issues. In that case the employee should fix up a meeting and bring his efforts to employerâ€™s notice.
Threatening to quit doesnâ€™t go down well with employers. Now employer knows that the employee is looking out for other opportunities outside and will hesitate from assigning projects or training. In most cases the employer doesnâ€™t give in. Moreover, he may turn unnecessarily hostile, said a law graduate.
Asking for a pay raise isnâ€™t easy, even for deserving employees. Thatâ€™s why it is important to plan, prepare and learn negotiating skills. Be confident and polite, while requesting for a pay raise.
Request for a meeting as it allows for a flexible, two-way communication process giving the employee scope to present his thoughts and ideas.
If say our EE after all the above efforts havenâ€™t been able to get that dream salary at his workplace he need not frustrate. He can still negotiate with the boss for some perks which, although not direct cash, can push up the value of employeeâ€™s total package. A bit of intelligent bargaining can get EE some fabulous incentives which donâ€™t directly pinch the bossâ€™s pocket.
However, one must be aware that bonuses are offered to only those people who display excellence in the workplace. Quantify your efforts in terms of tangible results to raise pay package.
Extras that can be bargained:
Health insurance: What can be better than a health insurance scheme where company takes care of employeeâ€™s health and pays the entire premium for the policy that Executive hold? Executive can also talk to his boss about covering preventive health services such as immunizations or regular check-ups.
Companies use Employer Stock Option Plan (ESOPs) to make their employees owners of the organization and also thus motivate them to work better. Many companies offer special services like laundry, repairs, meal vouchers, banking services, entertainment passes etc.
Company sponsored flat along with carâ€™ Rent and petrol constitute a major bulk of the monthly expenses for any family. If EE is able to get his organization to add these to the total package he is getting then it actually translates into a substantial pay hike.
If an executive and his/her spouse are working, then one can also ask for baby care services. Many companies also offer services for the elderly as well as for pets (this is not yet implemented in India). In such a case an employee can go to work tension free, and also save in terms of expenditure.
Quality education is again a big expense. So, if not a monetary pay hike, EE can negotiate for education allowance for his/her children.
Others can include holidays along with vacation packages, gym membership and flexible working hours.
Tips on how to ask for perks:
Employee can negotiate the bonus items during review time, or whenever he/she feels that there is an opportunity like when the boss is praising the employee for his splendid performance. Ask for perks in a one-to-one personal communication.
Be precise about what you are expecting as a perk i.e. pay raise holiday, fuel allowance etc. and be ready with alternative suggestions so that, if one is not feasible, the company can think about the next one.