The Two Sides Of The Coin: 9 Considerations To Negotiating A Salary Raise

With the natural annual inflation increase, increasing the prices of goods and services, it seems at least fair to expect a salary raise from your employer. If you are like most, we are always open to making more money; and on many occasions, we also think we are worthy more than what we are getting paid. No matter the amount.

What is a worthy salary raise like tailored to you? Are you worth further investing on?

In order for you to negotiate a salary raise at work, you need to understand some primary variables being considered in this negotiation. Thus, it is extremely important that you understand the two perspectives that can fairly optimize a mutual beneficial negotiation, constituting the two sides of the coin: the employer and the employee.

Employer Perspective

An employee costs an employer more than just the employees’ paychecks. The U.S of Labor Statistics reported about a month ago that

“Wages and salaries averaged $23.42 per hour worked and accounted for 68.6 percent of [the employee] costs.”

The extra cost it costs employers accounts for 31.4%. To put this into perspective, let’s assume your company has 300 employees and the average annual salary is $67,000. This means that your company is paying out $20.1 million just in wages and salaries on an annual basis; additionally, it has to pay out an additional $6.3 million (31.4%) just to have you legally employed with the company.

From an employer’s perspective, we are continuously looking for approaches and opportunities to reduce our costs while scaling our profits. Thus, it is a good idea to understand the employer’s perspective so that you can show that as an employee you are worth continuing to investing on and, even better, to give you a salary raise.

An employer is also looking to retain and nurture their talented employees. Especially due to the fact that, according to the Society for Human Resource Management (SHRM), talent retention such as “a manager making $40,000 a year, it takes $20,000 to $30,000 in recruiting and training expenses."

In addition, for an employer to consider a fair ask from you on a salary raise, there are several other variables that will certainly be accounted for in the consideration. An employer will check for a trait such as a Humble Confidence, which shows that you are comfortable and knowledgeable on your craft and speak your mind for the overall company success. Another factor is how efficiently and effectively you collaborate on tasks and projects; for teamwork is a quality of a professional who understands and encourages a company’s productivity culture. Another major factor is that an employer needs to see that you go beyond the call of duty; performing what you were hired to do in the first place is good, but again, you are just doing your job and doing what is absolutely expected from you. Additionally, you need to continue to grow (and show) that you are grooming your expertise and seeking to develop yourself as a professional. Lastly, an employer will also evaluate your professional reputation within the company, which will in turn either confirm or deny your petition for a salary raise.

Employee Perspective

Now that we have a better understanding on how much we are actually costing our employers and their expectations on employees when they are approached with the “I’d like a raise” discussion, are you still willing to go forward with your petition and can actually back it up with supporting evidences?

If so, don’t forget the following variables that is expected of you from your employers:

  • Collaboration/Teamwork

  • Beyond The Call Of Duty

  • Growth & Professional Development

  • Professional Reputation

Your mission when negotiating with your employer is to show that you are a valuable and indispensable asset to his or her company. Show, and do not tell, that you are worth their investment on you, for your evidences will show that they will receive much more than what they spend on you because you’ve demonstrated that you are indeed highly productive.

Negotiation Considerations

When both sides of the coin is covered, we then need to consider the entirety of the negotiation of a salary raise. Remember, your negotiation will start on your right foot when you are able to back up your petition with clear and proven evidence.

Here are 9 variables you should consider further exploring and bringing up to the discussion with your employer:

Accomplishments - Throughout the year, update your resume with specific accomplishments you’ve gained. You’ll be able to show your employer your success and how that translated into benefiting the company.

Expertise - Using your skills in an efficient and effective manner gives your employer and team the assurance you’ll always deliver quality work.

Leadership - Taking initiatives and collaborating on projects progression and succession while showing leadership traits promote a culture your employer feeds off of; aligning in this same expectation shows you are worthy of a salary raise.

Client Relationships - Developing and nurturing healthy and profitable relationships is another key factor an employer would add as consideration for your petition. In your discussion, bring the value your relationships have brought to your employer.

Systems Navigation and/or Creation - Understanding how to effectively output desired outcomes through a system is a much appreciated skill to possess. Creating a system that facilitates productivity and profitability, however, and sharing it with your colleagues and employer, is an immense credit to your professional reputation.

Annual/Performance Reviews - Much like in your accomplishments, where you record your performance along the year, you need to use this opportunity to showcase your performance. However, as soon as when you first get the job, it can be immensely helpful if you can set up a performance plan with your employer and define what success is for your role. Here’s an excerpt published by Monster suggesting on how to go about it:

“Savvy employees keep a performance review file. During the year, they put in memos, lists of completed projects or additional work taken on during the year as well as documentation of good performance. This file serves two functions. First, it provides you with proof of what you accomplished. Second, it jogs your memory when it's time to prepare for a review. If you're like many workers and don't have such a file, take the time to look over your calendar from the past year and re-create in your mind what you accomplished.”

Perks - If everything fails and for some reason your employer says no to your petition, consider negotiating for perks. At the end of the day, perks can be translated into a form of pay (extra paid vacation, extra paid time off, trainings and professional development, increased responsibilities, etc.).

Establish Your Salary Raise Amount - Certainly, you must do your research and see how much your position is going for so that you can show your employer you’ve done the work and want to be fair on establishing a satisfying salary raise. Three resources that come to mind are that can help you finding the right salary for your raise are:


PayScale, and


Active Visionary - Additionally, you can always show your employer that, should they consider increasing your salary, while you are doing your job, you have new ideas that can optimize the company’s resources to advance and boost the company’s overall profitability and productivity. What employer wouldn’t welcome this type of trait with open arms?

To effectively negotiate a salary raise, you must consider the two sides of the argument. Employers need to check for employees’ performance, and employees need to show that they are worthy of a salary raise. A mutual gain is indicative of a healthy discussion; the employer gets to retain talented professionals, and employees gain something from employers (whether a salary raise or perks). Negotiating takes guts; just make sure that you are prepared and aware of your costs and performance to have a successful discussion.


What other thoughts would you add to this post? I am interested in hearing your thoughts in the comments below.

As always, thank you for reading my post. Through Sprowl & Smith Coaching, I am always writing about productivity, being ready, and flourishing. Should you be interested in reading my future posts, please click “Subscribe” and feel free to also connect via Twitter, Facebook, g+, Youtube, and Sprowl & Smith Coaching.

You might also be interested in my new and free system for achieving your goals while staying highly productive and organized on both your personal and professional lives. You can download this system here: The Engineering of Getting What You Want / Reaching Your Goals

About the Author

Mike Sprowl is becoming the most sought after Readiness & Flourishing Coach and Consultant in the coaching community. He is famous for helping clients find a direction, implement personalized pathways, and facilitate flourishing and growth so that their lives are meaningful and purposeful without being negative.​

#CareerCoaching #Negotiation #Salary #Pay #Employee #Employer #Collaboration #Teamwork #JobExpectation #Job #Growth #ProfessionalDevelopment #Accomplishments #Expertise #Leadership #ClientRelationships #System #Performance #PerformanceReview #Perks #Glassdoor #PayScale

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