Picture this: It’s performance review season. You’ve had an outstanding year, and you’re looking forward to a big raise to reward your hard work. But, despite a strong review, your manager gives you the same 2% merit increase you got last year.
When you want to negotiate a higher salary after a job offer, your instinct might be to go directly to your boss and demand more money. Instead of rushing that conversation, consider how your manager arrived at the raise they offered, and quantify the value you add to the team to negotiate a better salary.
How do you negotiate a higher salary than what you were offered?
Let’s face it: Arguing for a raise in addition to your annual merit increase can be tricky. Follow these six steps to negotiate beyond the amount you were offered.
1. Adjust your expectations
No matter how much you contribute to your team, a bigger raise may not be possible right now. By the time your manager tells you about that 2% raise, the company’s merit increase budget has already been allocated. The most common exception to that rule? You might be able to negotiate your salary if you have another offer.
2. Do your homework so your manager doesn’t have to
Before you ask for more money, prepare for the salary talk by establishing three things:
- Your target salary. What is the specific raise amount you feel you have earned? Start with your market value — see salary ranges for your job to help — and then adjust your market value for your specific situation.
- Your accomplishments. What are the responsibilities you’ve taken on that were unanticipated when your salary was last set? Make sure to identify specific accomplishments and the business value of each one whenever possible.
- Your accolades. What awards or recognition have you gotten from colleagues, other managers, or clients? These can help your manager understand the value of your work even if they’ve been focused on other things.
It’s important to have the supporting data to make your case before asking your manager for a raise. Not sure where to find the information you need? Consider asking Glassdoor community members, whether you post an anonymous question in your company bowl, or start a conversation with other professionals in the same industry. In some cases, peers from your own company may be able to weigh in with more information to help you decide how to proceed.
3. Consider bonuses in addition to base pay
Managers have more flexibility to offer job candidates signing bonuses instead of additional base pay. If you’ve got the data to show you’re worth more, maybe a performance bonus or additional stock options could bridge the gap between your target salary and what you’ve been offered.
4. Start the conversation
Armed with your target salary, accomplishments, and accolades, approach your manager about an additional raise. Here’s how you can begin that conversation:
“I’m grateful for this merit increase, and I appreciate you looking out for me. Based on the market research I’ve done, I was hoping for a raise to [target salary ] since I’ve taken on a lot of new responsibilities this year. What can we do to adjust my salary to reflect my contributions to the team?”
5. Set a goal and establish a timeline
If the budget has already been spent for this cycle, you’ll need to wait until there’s money available to increase your salary. If your manager suggests deferring a larger raise until later on, work with them to establish:
- What you need to do to earn the raise you’ve requested
- A check-in schedule to discuss your progress and make sure you’re on track to achieve your goal
6. Work with your manager
Once you and your manager establish a goal and a timeline, it’s up to you to keep it on your manager’s radar. Make sure to check in at regular intervals to discuss your progress, get feedback, and confirm that you’re still on track.
Remember: You may also run into structural barriers that prevent you from getting a large raise. (This is sometimes the case at large companies with rigid guidelines for raises and promotions.) If you follow these steps and find that more compensation isn’t available within a reasonable timeline, consider looking for new opportunities that pay you what you’re worth.