Show Me The Money Series (Part 2)
5 Constructive Steps to a Higher Salary
Nothing is wrong with wanting a higher salary, and you are not alone. Having said that, we must always be realistic about how that salary will affect us. Unfortunately, a higher pay cheque rarely delivers ongoing increased happiness, so remember to also focus on all the other important ways to address happiness and fulfillment.
1. Always Read the Policies
Most organizations have policies regarding compensation practices outlining how salaries are set, what the ranges are, how decisions are made regarding changes to salary. Seek out that information. If it is not available in any sort of policy, seek someone who can confidently explain the company approach to these things.
Work within the policies of the organization. If the policy states that salary increases occur every year according to the salary grid, then that’s how salaries work. Some salary policies may factor in performance, or credentials, or seniority. Gain clarity on what to expect, think about what is within your control, and act accordingly. Don’t expect policy exceptions, but certainly find out if there are any.
2. Check Your Assumptions
The Fundamental Attribution Error suggests that I will credit my effort when I have success, but credit good luck when others have success.
This affects how we see and respond to our circumstances, including company decisions about pay. We all have biases and suffer from our assumptions. It is tempting to conclude that we have all the information necessary to assess compensation decisions, but we generally don’t from our vantage point. So be mindful of assumptions and approach any conversations about salary with curiosity. Recognize that our bosses probably have more information and a wider perspective than we do.
3. Assess Your Performance
If your organization’s policy is to reward high performance with salary increases, then a review of your performance appraisal is a good idea. Seek input about your performance, find out where you are meeting, exceeding and not meeting the expectations. Understand the standards and priorities of your role. Your assessment of your performance may differ from your boss’ assessment of your performance. Your boss has a different perspective than you do, and understands the expectations. Your boss also has an eye on the work of your peers, and is better able to assess their performance than are you. Focus on how you can learn, improve and grow and allow the dollars to follow.
4. Respect Internal Equity
An organization needs to try to maintain internal equity with regards to compensation. If a manager gave an increase to all the people who asked for one, or negotiated for one, or begged for one, and didn’t give an increase to those who didn’t ask, then the manager puts the organization at risk of unfair, inequitable practices. Most organizations approach compensation decisions with objectivity, factoring in all information across the organization and using specific criteria to inform decisions. Understanding that criteria can help you identify relevant facts that could support your case.
5. Engage in Constructive Conversation
If you are not getting the answer you hoped for regarding your pay, don’t threaten to leave or get angry as this may have the opposite affect of what you want to achieve. Some great constructive questions to ask:
- Is there anything I should be doing, or learning or changing in order to ensure I have the best opportunity to influence a salary increase?
- If I were to build on my resume by participating in committees, upgrading my education, taking courses, volunteering – would these efforts result in a change in salary?
- Is there anything that I am doing or failing to do that is getting in my own way in terms of growing in the organization?
- I appreciate that now may not be the right time for any review of my salary, is there a time when that might make sense?
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