It's a slow January morning after the holidays. A mail to all employees lands in your mailbox announcing the yearly salary adjustment. A fixed percentage that applies to everyone.
Hands up if you have worked for a company that used this trick.
One company I worked for sent out this mail the morning after the company Christmas party.
When a company communicates a fixed percentage salary increase to all employees, they achieve two things:
1. They convince some that there is no negotiation, your new salary is set by some obscure top down process that you cannot change.
2. For those who see through the illusion, they prime you into accepting the target number as a baseline for negotiations. You will see any salary increase you negotiate above this is a win. Instead of doing your own research. Guess if the target number is higher than inflation, company revenue growth, or the salary index published by the union?
People are complacent and lazy. Most of us don’t like conflicts. This makes us willing to accept a slightly lower salary to avoid a social awkward situation.
Companies know this. Companies do this because it works. Don’t be lazy. Do your own research. Get the salary you deserve.
Now, you may not succeed in negotiating a higher salary. The company may be perfectly willing to let a number of employees walk away while you may not be in a position to do so. It is a long journey to land another job. Don’t threaten to quit if you are not willing to do so. They may call your bluff.
A better alternative is to restart negotiations during the year. Like when you are about to take on more responsibility (best) or when you have completed a delivery. When you have leverage and the company is making money. It is always a negotiation.
