The economy may be picking up, but that doesn’t mean employers are increasing salaries at the same rate as inflation or the ongoing cost of living crisis.
In fact, global employers have set aside 4% for salary increases in 2024. Predictions show that inflation, while expected to drop slightly in 2024, will still remain higher, which means that employees in long-term roles might need to start negotiating for a salary increase to maintain their current standard of living.
However, not everybody is as skilled in the art of negotiation as they might like, so below are six essential tips to ensure you negotiate a salary increase for 2024.
1. Choose the right time
Timing is everything, and never more so than when negotiating a salary increase. The best time to ask for a raise is following a win––be it after you’ve secured that new client, successfully completed a project, or closed a profitable quarter.
2. Be clear about what you want
When you schedule the meeting with your boss, be clear you want to discuss compensation. This not only gives you time to prepare, but also gives your boss time to look at both your current salary and the company’s bottom line.
3. Research the market for comparable salaries
Before approaching the meeting, research the market. Browse vacant positions on the City AM Job Board and see what you could earn elsewhere. Look at your experience level, education and the current state of play within the market.
Use this information as a ballpark from which to open negotiations. Also remember, statistics show that for a UK employer to replace an employee it can cost anywhere between six to nine months’ salary when you consider training and onboarding costs.
4. Have your evidence ready
For any negotiation to be a success you need to highlight your contribution to the company. Keep this factual, precise and numbers-driven where possible. How much profit have you personally brought to the company or, how much have you saved the team over the past 12 months? The aim is to show the value you bring to the company––and why you’re worth that raise..
5. Suggest alternatives to a salary increase
If a monetary increase isn’t possible, think about other perks that might make up the difference. Increased pension contributions, flexible working hours or subsidised training could save you money in the long run.
The key to finding a non-monetary bonus is to ensure it will impact your personal life in the right way. If flexible working hours will reduce your childcare bill, then consider it a win.
6. Know your bottom line
If your request is denied without any clear path to progress or work towards an increase, you may want to walk away and find a new role elsewhere. Below, you’ll find three exciting roles hiring this week, and you can explore the City AM Job Board for many more opportunities.
Double unicorn Zilch launched the world’s first commerce card in 2018 and continues to grow. Now it’s looking to recruit a credit risk analyst with responsibility for monitoring the credit portfolios to identify and assess any changes in credit risk exposure and preparing reports and documentation summarising credit risk findings, trends, and recommendations for management, regulators, and stakeholders. The successful candidate should data experience within growth and be able to create analytical insights that can be incorporated into key decision making. Find more information here.
Fintech unicorn Zopa is currently recruiting a Financial Crime Risk Manager as a second line of defence to support the Deputy MLRO regarding financial crime policy, advisory and oversight activities. This will include supporting the overarching assessment and reporting on the effective management of financial crime risks across Zopa. The successful candidate will provide financial crime advice and guidance to the business and should have strong financial crime subject matter expertise across AML, CTF, sanctions, anti-bribery and corruption. Find more information here.