Wesley D. Millican knew,
by the numerous calls he was receiving from peers and
headhunters, that there were many jobs available at
higher pay than he was currently earning. But he liked
his job as vice president of physician services for
Physician Reliance Network, which manages medical practices.
So, instead of entertaining offers, he decided earlier
this year to ask for a raise.
Rare is the corporate manager
who actually enjoys bracing his boss for a pay increase
and rarer still is the manager who's good at it. Most,
dreading conflict, uncomfortable at tooting their own
horn, or not wanting to be seen as money grubbers, take
what the company offers.
That's a big mistake that
could cost you millions of dollars over the course of
your career, says negotiations expert Robin Pinkley,
an associate professor at Southern Methodist University's
business school and co-author of the soon-to-be-published
"Turning Lead into Gold: The Expert Negotiator's
Guide to Negotiating Salary and Compensation."
Having advised you in the
past on ways to determine your market value, I thought
it fair to help you take the next step, making the pitch
for more money. I'll use Mr. Millican's experience as
a beacon.
The Dallas manager plotted
his campaign carefully. Not wanting to catch his boss
by surprise, he requested a meeting, at the boss's convenience,
to discuss his compensation package. "People need
time to research what the market is," he says about
giving his boss notice.
He wrote a proposal, including
his research on comparable posts, the money he wanted
and why he thought he deserved a raise. It allowed him
to marshal his arguments and edit his thoughts before
the meeting. Also, says career adviser Eva Wisnik, the
memo provides your boss with something concrete to present
to the other executives involved in the decision.
In the memo, Mr. Millican
made it clear he wasn't shopping around, a touchy topic
in most raise negotiations. Many experts insist you
should never mention outside offers. Even if it helps
you get a raise, they contend, your bosses will never
trust you again. It's a risky strategy and should be
used only if you're willing to quit if your bluff is
called.
Still, it is the ultimate
leverage. Some companies, Ms. Pinkley points out, don't
respect you unless you're getting outside offers. For
those bosses who react negatively to such threats, you
can still play the card by artfully conveying that you've
chosen not to shop, even though you could. That way,
Ms. Pinkley says, "you'll get credit for loyalty
from the company."
Mr. Millican chose the high
road, stressing how much he wanted to stay with the
company. In raise negotiations, too many people adopt
an "If-I-don't-get-this-I'll-leave approach,"
he says, "Your intention shouldn't be to make demands,
but to make sure your compensation is up to market standards."
In the memo, Mr. Millican
also provided detailed facts and figures about how he
contributed company's success, a must in raise negotiations.
"I could show that I was more productive than comparable
people in other organizations," he says, basing
the comparisons on his past experience and on current
information about staffing in the industry.
What are good arguments
for a raise? In this cost-conscious, performance-driven
market, for instance, your financial needs are irrelevant.
"Don't ask for pity about your mortgage payment
and the high rent of your boat slip," advised Jack
Chapman, a career counselor who coaches clients on salary
negotiations.
The best argument for a
raise these days is that you are below market value
for your position, and you couldn't be easily replaced,
because of your expertise, the tight job market, or
some combination of those factors.
Many companies, fortunately,
fear losing managerial talent in this tight job market.
Retention is all corporate human-resources executive
Lee Miller hears about at meetings. "Five years
ago, it was, 'how do we control our costs,'" he
says. "Now, people are very sensitive to the fact
that you have to stay competitive, and other companies
are trying to recruit away your talent."
But companies also continue
to cut back even as they're growing, and often remain
reluctant to offer sizable salary increases. To overcome
any resistance, Mr. Millican listed future goals in
his memo and offered to negotiate a decrease if he failed
to deliver the value he promised. "It shows you're
truly committed to delivering that value and it's not
just about dollars," he says.
Some final tips: Every company
has its cultural idiosyncrasies, so interview veteran
managers to learn how your company handles raises.
Present specific salary
targets; if you offer a range, your boss will generally
choose the lower end of the range.
Know when to stop negotiating.
If the boss won't budge on salary, try for a bonus,
stock options or added responsibility. "Money may
come with added responsibility," Mr. Miller says,
"but even if it doesn't, you've got something you
can market to someone else for more money."
Whatever you do, don't end
the talks on a sour note. Mr. Millican got a substantial
raise, although not as much as he had requested. He
decided it was more important that both sides walk away
happy. Creating a good work environment after negotiations,
he says, is "more important to your career in the
long run."
