5 tips to negotiate with your employees on a pay raise

Every employee wants to be paid more, but only 43% of them have actually raised the issue with their bosses.

The 2015 salary negotiation guide by Payscale studied staff in the United States to dig up some trends on the salary negotiation process.

Among those who bring the topic up, employees with a higher salary are more likely to ask for a raise and are more likely to get what they want.

While just a quarter of those earning US$10,000-20,000 a year got the raise they requested, a much higher 70% of those earning more than US$150,000 a year won their negotiation to get a raise.

The report also highlighted some of the things employers need to consider when negotiating pay with their staff.

1. Employees won't bite on the first available offer

Smart employees will not accept an offer immediately, they will ask for a couple of days to consider. Then they will come back in a few days with an offer that they think is reasonable.

2. Staff seldom initiate salary talks

Employees tend to wait for the bosses to raise the issue on salary. They will avoid giving a number unless the boss requests them to do so.

3. Don't forget about the benefits

During salary negotiation, don't forget to list out the value of benefits provided to employees, like holidays, health insurance bonuses and other compensation.

Try to get staff to think about the other benefits they can get in case you as the boss cannot provide them with the raise they had hoped for.

ALSO READ: 80% of staff in China are dissatisfied with their salary

4. Be reasonable

The salary an employer can offer varies per the nature and scale of the business. Get employees to appreciate that if they are working for a small NGO, they are not going to be paid like stock brokers on Wall Street.

5. Be positive and professional

Talks on salary can be a roller-coaster ride. Whatever happens, behave in a professional way, for employees to follow your lead and do the same.

The report also found differences in the way different generations approach the matter. Gen Y, for instance, tend not to ask for a raise and are uncomfortable negotiating salary because they are worried about being perceived as pushy.

On the other hand, Baby Boomers also do not want to negotiate for more money for fear of losing their job.

ALSO READ: Want to hire staff in Singapore? Focus on salary and benefits

Image: Shutterstock