Counter-offers
Counter-offers can be an interesting development because your manager may not give you what you want but may offer a counter-offer to you. This counter-offer may be less than your ideal or is not what you expected.
Alternative, you may have another offer for your manager to consider when your first offer is not taken up by your manager.
Counter-offers do have a negative impact
Your manager may already sense that you are looking for a new job if you are not receptive to their counter-offer.
In most cases, when someone starts looking for a new job, it is not just about the money. Reasons can be varied – there is no room for growth or promotion, or the work is not challenging. They may most likely leave anyway.
Always think outside the box
You need to be creative and think outside the box to cater for all possible responses especially when your original proposal is not accepted, and you are in a negotiation mode.
Temporary ‘higher duties allowance’ or ‘promotion in place’
One strategy that I have found useful is to propose a higher duty ‘allowance’ or ‘promotion in place’.
The idea of ‘promotion in place’ is to remain in your current position. But you also take on new responsibilities temporarily. In return, you receive a higher duty allowance.
As this arrangement can be temporary, it is easier to get approval for as compared to a permanent salary increase or promotion.
Always think long-term
In effect, this ‘promotion in place’ is a trial period for you and your manager to see whether you can take on more responsibilities.
If you can cope and can shine above your manager’s expectations, then you are in a good position to negotiate for a permanent salary increase or job promotion.
Rejecting your manager’s counter-offer
If you think your manager’s counter-offer is acceptable, you have achieved your objective.
But if you do not accept your manager’s counter-offer, outline your reasons and highlight any other options that are more suited to you. Do prepare to negotiate or let the matter rest until the next review.
Consequences of rejecting your manager’s counter-offer
The downside of rejecting your manager’s counter-offer is that you may be excluded from the inner circle from this point forward.
You may end up getting pushed out later when the opportunity is right.
Your manager may ‘keep scores’. They may not take your rejection positively. Instead, they may be looking for opportunities to ‘get back’ to you.
Accepting your counter-offer
Even if your manager agrees (voluntary or involuntary) to your counteroffer just to keep you on board in the organisation, it can leave a bad taste in their mouths.
They know that you have one foot out the door and could leave at any moment.
What should I do if my pay increase request is turned down?
If your salary increase proposal and counter-offer are both refused by your manager, it is not necessarily the end of the world.
There are still tried-and-tested pathways to greater recognition and reward.
Never upset your manager
Whatever you do, always think long-term. Never upset your manager by being inflexible.
You may win the battle but lose the war!
Your ‘success’ can be short-lived as your manager can make the rest of your working life in the organisation miserable. Then you may be forced out of the organisation when you least prepared or you do so without a choice.
Always find out why
Whatever the reason is, you must understand what the barriers are to your pay increase.
While your manager may not be forthcoming in giving you the real reason for the rejection, you must attempt to find alternate solutions or just let the matter rest.
When you are not good enough
If your manager does not think that your performance warrants a pay increase at this time, keep calm.
Ask them why. Work out with your manager and agree on an improvement plan. This plan will contain clear objectives for you to achieve and the timeframe for doing so.
This ‘agreement’ can set the foundation for an increase in the future.
You can then work hard to achieve these objectives. Ask to review your performance at an agreed date.
If you need time to up-skill yourself to prepare for your next discussion, then take action to close any skills gaps.
“No budget” reason
A common response you may get is for your manager to say that the business is already over its annual budget and there is genuinely no cash left. There is nothing much they can do without the money being allocated.
If your manager agrees that you are a star performer, but there’s no money available right now, be persistent. Set a future date to review the situation.
Consider other solutions or options
Think long-term and never burn your bridges. Be humble and maintain harmony.
Being angry and hostile to your manager is not the best way to ask for a salary increase.
Some options available to you
Consider if there are any options that may not be difficult for your manager to grant.
Be open and transparent with your manager.
Take a long-term view and explore a mutually acceptable solution.
Your options can include:
(1) Role or job title changes.
(2) Internal or external development and training to reach the next level in your career.
(3) Work-life balance in terms of more flexible working hours, half-day Fridays, more holidays, or the ability to work from home where you can save 20% of your travel costs.
(4) New responsibilities by taking on new challenges.
(5) Making your job description clearer and less stressful can make your role much more pleasant.
(6) Performance-related bonuses when you hit certain performance targets.
(7) Additional retirement or pension contributions.
(8) Time out of work to attend networking events, etc.
(9) A lateral movement to other jobs in the same organisation.
Asking for more perks instead
You could even ask for more of the following perk:
(1) Company car if you don’t want the sole responsibility for financing, maintaining and upgrading your vehicle.
(2) Travel allowances for the cost of your public transport.
(3) Private health or life insurance.
(4) Gym memberships.
(5) Childcare benefits.
If it doesn’t work out the first time, ask again later
If your negotiation with your manager is not going well, the best thing to do is to gather yourself and try again later. Seek counsel from your mentor, coach or qualified friends or family members.
Don’t sit on your hands and do nothing. Strategise and work on the plan.
Remember, people don’t plan to fail, but they fail to plan and take action!
Perhaps it is time to change jobs
The reality is that if the organisation still won’t give you a pay increase, it could be time to change jobs.
Furthermore, when you are not developing your skills and career, and there’s no chance for promotion, then it is time to research other opportunities internally or externally.
Do note that negotiating a higher salary is always easier at the job offer stage when an employer is keen to secure your services.
Thank your manager for a pay raise
Congratulations if you have secured the salary increase you want.
It is good manners to send your manager an email or a thank you letter for the pay increase.
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In summary
Asking for more money can be a very challenging task. It takes courage and planning.
Always remember that it is not about you.
While you may think that you are the best worker in the organisation, the key to your success is giving that add tangible value to your employer in exchange for the requested salary increase.
The burden of proof is always on you to show that you are a valued member of the team and to your manager.
Always think long-term and never burn your bridges. Never upset your manager as you need to work with them.
Be flexible and creatively think about other options and solutions. When discussions don’t go your way, walk away and review your performance.
It may be that you need to improve your performance. You may not know that your performance is not up to expectations or standard unless you spoke to your manager.
Good luck!