December 15, 2021

What Is A Salary Increment, And How You Can Negotiate For One

Being passionate about the job you have and witnessing your own growth is easily one of the most satisfying feelings. After all, it takes hard work to be successful in what you do. That being said, are you sure you’re getting properly financially compensated for it? 

If you have a feeling that you’re putting in more effort than what you’re getting in the bank every month; it’s time to ask for a raise. Here’s a complete guide on salary increments, and how to negotiate for one!

What Is A Salary Increment? 

To put it layman’s terms: It’s a raise! A salary increment is an addition to an employee’s monthly/yearly salary. An employer can increase the amount that an employee receives as an annual salary, which doesn't include bonuses

Types Of Salary Increment 

There are several types of salary increments that you might be entitled to receive at work:

  • Completion: Typically awarded once you’ve completed your probation at a new company
  • Incentive: A yearly increment based on your performance
  • Counter-offering: Matching a new salary at a new position to avoid losing employees

Why Do We Need A Salary Increment? 

There are several reasons as to why you might be eligible for a salary increment, which may include: 

1) Qualifications increase

The salary you’re currently receiving at your company was decided upon based on the capabilities and achievements of your last position. You’ve since then taken on new tasks and responsibilities, which is enough reason for a raise.

2) Positive and strong work ethic

Employees who have a positive mindset are generally favoured by companies. This is because it’s infectious – and you'll end up influencing your colleagues to do better as well. Consistency in your work ethic also helps prove your dedication to the job. 

3) A promotion!

Receiving a new change of role usually comes with the opportunity to discuss a salary increment. Discuss how your new tasks and responsibility would be worked into this new range of salary. 

How To Negotiate For A Salary Increment

Though it would be fun to burst into your boss’s office Hollywood-style, and shake your fist in their face demanding for it – salary increments in real life are definitely not that dramatic. Besides, pulling something like that would just result in them calling for security to evict you, which is far from what we want.

Here are some effective ways for you to negotiate a salary increment with your higher-ups, in a more professional manner:

1) Consider the company’s financial situation

Timing is everything. Always practice mindfulness when negotiating for a salary increment as it could easily go downhill if you lack tact. Think of the financial health of your company; has there been any recent successful campaigns?

Or alternatively, have there been budget cuts and employees were let go? Once you’ve understood how your company is standing financially, you'll know when is the best time to negotiate for a salary increment that you'll most likely receive. 

2) Understand your role’s worth

Ask yourself how much have you contributed to your company. Have you been proactive in taking on tasks? Do you mentor other employees? Your role in the company is more important than you might realise, especially if you’ve committed a few years to it. 

3) Gather your past accomplishments

Have any huge wins from past projects? Now’s the best time to come forth with them. Create a presentation (extra brownie points for your extra effort!) or a binder of all your successful accomplishments as evidence of why you deserve a salary increment. 

4) Research for salary increment estimation

When it comes to salary increments, industry research is crucial. Find out how much the average salary is for people in your industry or similar jobs that offer the position. This will help you develop a range for your salary increment estimation. You wouldn’t want to put a price that’s too high and will get rejected on the spot – or one that is too low, either. 

5) Practice negotiation 

The art of negotiation is not a simple feat to conquer. It’s all about the right balance between push and pull; hitting that sweet spot before going in for the kill. Try writing an outline and running it through with a friend, or even practicing through bargaining at a market! Determining your tone as well as the confidence boost will help you when D-Day arrives. 

Examples Of How To Negotiate For A Salary Increment 

There’s a sea of tactics that you can use to negotiate your salary increments. Here are our picks for the most effective steps to negotiate a raise. 

1) Introduce challenges and propose solutions

Research and find what your company or department is currently struggling to achieve, or even introduce a new angle that could possibly be tapped into. Once you’ve got your supervisor interested, start proposing a detailed solution. This shows how committed you are, and therefore worth a salary increment. 

2) Play with the big dogs

Your market value has changed since you last joined your company. It’s time to do some industry research and look into how much someone with your skills and seniority is worth before putting in your request for a salary increment. It also helps to justify the range! 

3) Market yourself with value

Leave humility at the door for this one; it’s time to show them what you do best. Bring up all of your skills, your responsibilities (and how you excel at them!), as well as your excellent performance record. This helps persuade your employer as you’ve just showcased why you’re a good catch. 

4) The fact check

Impact matters, which is why you'll need facts to back up your statements. Provide solid evidence in the form of quantitative data, as measurable results do the best talking. Don’t be afraid to into deep detail about all of your achievements either! 

5) Be confident and stay professional

Even though factors like discussing your worth may seem emotional, it’s important to keep your cool and remain professional. It’s not the time for low blows at colleagues or threats; keep all of that at the door! Remember that confidence goes a long way and stay true to yourself. 

Raise Those Standards And Salary!

With all of the above in place, we hope that you're ready to get that salary increment you deserve! Always remember to be prepared beforehand and enter with a clear goal in mind; your employer will value you for not wanting to waste either of your time. 

Don’t forget to stay positive regardless of the results of the salary increment negotiation; it’s a learning curve! The experience itself is beneficial and will come in handy for the next time there’s potential for a raise in the future. All the best for your future ventures!

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