How To Negotiate Salary During Performance Review

How to Negotiate Salary During Your Performance Review

Your annual performance review is more than just a chance to hear about your accomplishments—it's a prime opportunity to advocate for a salary increase. Successfully negotiating a raise requires preparation, confidence, and a strategic approach. This guide will walk you through the process, helping you confidently navigate the conversation and secure the compensation you deserve.

Before the Review: Laying the Groundwork

Before you even step into that performance review meeting, you need to do your homework. This preparation is crucial for a successful negotiation:

• Research the Market: Use resources like Glassdoor, Salary.com, and Payscale to understand the average salary for someone with your experience, skills, and title in your location. Knowing your market value is your strongest negotiating tool. Don't just look at averages; pay attention to the range and identify where you fall within that spectrum based on your performance and achievements.
• Document Your Accomplishments: Create a detailed list of your accomplishments throughout the review period. Quantify your successes whenever possible. Instead of saying "improved efficiency," say "increased efficiency by 15% through implementing X process." Concrete examples are much more persuasive.
• Identify Your Strengths and Weaknesses (Honestly): A self-aware approach is key. Knowing your strengths allows you to highlight your contributions. Addressing potential weaknesses honestly shows maturity and a willingness to improve. This balanced approach builds trust.
• Determine Your Desired Salary: Based on your market research and accomplishments, determine a specific salary range you're aiming for. Having a clear number in mind prevents you from undervaluing yourself. It's also helpful to have a "walk-away" number – the lowest salary you're willing to accept.
• Practice Your Pitch: Rehearse how you'll present your accomplishments and salary request. This will help you feel confident and prepared during the meeting. Consider practicing with a trusted friend or mentor.

During the Review: Making Your Case

The performance review itself is where you'll present your case. Remember to be professional, confident, and assertive:

• Start Positive: Begin by acknowledging the positive aspects of your review and expressing your appreciation for the opportunities you've been given. This sets a positive tone for the conversation.
• Highlight Your Achievements: Clearly and concisely present your documented accomplishments, emphasizing the quantifiable results. Connect your accomplishments directly to the company's goals and objectives.
• State Your Desired Salary: Confidently and directly state your desired salary range. Don't apologize for asking for what you deserve. Support your request with the market research you've conducted.
• Be Prepared to Negotiate: Your initial salary request might not be accepted immediately. Be prepared to negotiate and compromise. Consider offering concessions in exchange for a higher salary (e.g., taking on additional responsibilities).
• Listen Actively: Pay close attention to your manager's responses. Be open to their feedback and address any concerns they might have. Active listening demonstrates your professionalism and willingness to collaborate.
• Don't Be Afraid to Walk Away: If the offered salary is significantly below your expectations, be prepared to walk away. Sometimes, the best negotiation is knowing when to say no.

After the Review: Following Up

Even after the meeting, your work isn't finished:

• Send a Thank-You Note: Send a brief thank-you email reiterating your appreciation and summarizing the key points of your discussion.
• Document Everything: Keep a record of the agreed-upon salary and any other benefits discussed.
• Continue to Excel: Continued strong performance will solidify your worth to the company and pave the way for future salary increases.

Negotiating a salary increase can be daunting, but with thorough preparation and a confident approach, you can significantly improve your chances of success. Remember, your value is reflected in your contributions, so be prepared to articulate them clearly and persuasively. You deserve to be fairly compensated for your hard work!