Why Does Asking for More Money Make People Feel So Vulnerable?
A quick guide on how to navigate the process of asking for a pay increase by presenting facts and data.
When we approach an employer for a salary increase, we are essentially asking for validation.
Validation that:
1. We are valued and needed.
2. We are doing a great job, and it has been noticed.
3. That our employer is willing to assign a premium to our contribution.
Money is a deeply personal and sensitive topic because it represents who we are and who we think we are – which is why it can be so emotionally charged. Add to this the concept that typical employment requires us to exchange the ultimate resource, 'our time', for compensation, and we have a minefield of emotions.
In reality, money is almost never about the numbers…it’s about what we can and can’t do, freedom, access, power and powerlessness, and the stories we tell ourselves about the perceived success or failure of our careers.
The process of asking for more (of anything) can feel daunting, but there are a few instances when an employee should feel confident asking for a pay increase - these include:
1. When the market has shifted to such an extent that the assigned compensation is no longer fair and competitive.
2. When the role has evolved (usually over a longer period) into a completely different set of duties and responsibilities and now requires a re-evaluation.
3. When the incumbent’s skillset has outgrown the job and salary - This might mean a job hunt.
When asking for a pay increase, it is important to enter the discussion from a non-defensive and emotionally neutral perspective, equipped with quantitative supporting data.
This includes the following:
A summary of what your current role includes (a revamped job - spec, if you will). Sometimes, leaders are out of touch with the day-to-day responsibilities of a given job. This is an opportunity to provide updated information and highlights the value-add of a specific role.
Current market data from salary surveys (these are published by survey houses and publicly available; alternatively, reach out to a trusted recruiter for this information). This speaks to how the market values the role.
Historical data of your base comp, bonuses and total rewards (make it easy for HR to advocate for you). This information also creates context.
A summary of your performance reviews and 'wins' over the last 12 - 24 months. This is a great opportunity to highlight your success and contributions.
A proposal on what pay increase you think is fair with a business case to support it.
HR plays a vital role in being a conduit between employees and Executive Leadership and typically takes the lead in navigating these critical and sensitive conversations.
From an employer perspective, the most efficient way to keep ahead of this process is to follow a regular cycle of performance-linked pay increases while ensuring the organization’s pay structure is linked to the local market.