Learn how to effectively argue for a higher salary during a performance review with expert employee relations advice.

Compare your performance against others internally and externally. Gather 360 feedback on your performance. Evaluate similar job roles in the market for a similar sized organisation and gather information on the compensation and benefits associated with the role. Use these as a benchmark to assess the gap and enter into a discussion with your management.

Last updated on Jun 30, 2024

Here's how you can effectively argue for a higher salary in a performance review.

Navigating a performance review can be daunting, especially when you're aiming to negotiate a higher salary. However, with the right approach and preparation, you can make a compelling case for a raise. It's crucial to understand how to articulate your value to the company and align your request with its goals and financial capabilities. By doing so, you can set the stage for a successful negotiation that benefits both you and your employer. This article will guide you through the steps to effectively argue for the salary you deserve.

1 Know Your Worth

Before entering a salary negotiation, research the market rate for your position within your industry and geographical area. This knowledge will serve as a benchmark for your salary discussion. You need to be able to justify why you deserve a higher salary, and understanding what others in similar roles are earning is a key part of that argument. Be prepared to articulate your unique skills and contributions that make you more valuable than the average employee.

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Indranil Sen

Head: Human Resources | DISM ISO 30415 Educationist | DEI Business Process Expert
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Compare your performance against others internally and externally. Gather 360 feedback on your performance. Evaluate similar job roles in the market for a similar sized organisation and gather information on the compensation and benefits associated with the role. Use these as a benchmark to assess the gap and enter into a discussion with your management.

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Priyanka Baruah Anand

HR Leader & Senior Business Partner|| Manufacturing & Service Industry|| Talent Acquisition & Management|| HRBP|| HR Operations|| Employee Relations|| Strategic HR|| MBA HR Pune University || Labour Law & Lab. Welfare||
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Before negotiating your salary, find out what others in similar roles earn in your industry and area. This gives you a reference point. Be ready to explain why you deserve more by emphasizing your unique skills and contributions.

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2 Document Success

Maintain a record of your accomplishments, feedback, and any quantifiable contributions you've made to the company. This evidence is your leverage during the salary negotiation. Highlight any instances where you've gone above and beyond, completed projects successfully, or contributed to revenue growth. Your goal is to show a clear link between your efforts and positive outcomes for the company, which justifies your request for a higher salary.

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Srikant Verma

HR Professional with 8+ Yrs Exp. | Jombay HR100U40 | NHRD & AIMA Awardee | Core HR, Talent Mgmt. & Employee Experience Specialist | CSR Practitioner | DE&I Champion | JENESYS 2.0 Participant | NTPC | ex-IOB & Wipro
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To negotiate a higher salary during a performance review, prepare by researching market rates and documenting your achievements. Schedule the discussion strategically, highlight your contributions, and practice your pitch. One needs to be clear and professional in one's request. One should be open to discussion and handle objections gracefully.

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3 Timing Matters

Choose the right moment to discuss salary—ideally during a performance review when the focus is on your contributions to the company. If your review is positive, leverage that momentum to broach the subject of compensation. It's also important to consider the company's financial cycle; approaching a salary negotiation after a profitable quarter may increase your chances of success.

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4 Be Professional

Approach the conversation with professionalism and respect. Clearly communicate your request and the reasons behind it without letting emotions dictate the discussion. If you approach the negotiation with confidence and poise, you're more likely to be taken seriously. Remember that this is a business discussion; keeping it professional helps maintain a positive working relationship regardless of the outcome.

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5 Strategic Phrasing

Use strategic language that aligns your interests with those of the company. Instead of simply stating you want more money, explain how your skills and performance contribute to the company's goals and successes. By framing your request in terms of the value you bring, you're more likely to persuade your employer that investing in you is in their best interest.

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6 Plan B Prepared

Be prepared for any outcome. If your request is declined, ask for feedback on how you can improve or what would be necessary to merit a raise in the future. Alternatively, consider negotiating for non-monetary benefits such as additional vacation time or professional development opportunities. Having a backup plan shows that you're flexible and still committed to the company, even if the salary increase isn't immediately granted.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can effectively argue for a higher salary in a performance review.

1

2

3

4

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1 Know Your Worth

2 Document Success

3 Timing Matters

4 Be Professional

5 Strategic Phrasing

6 Plan B Prepared

7 Here’s what else to consider

Employee Relations

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Here's how you can effectively argue for a higher salary in a performance review.

1

2

3

4

5

6

7

1 Know Your Worth

2 Document Success

3 Timing Matters

4 Be Professional

5 Strategic Phrasing

6 Plan B Prepared

7 Here’s what else to consider

Employee Relations

Rate this article

Thanks for your feedback

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