Revealed: 10 golden rules for making a pitch for a pay rise

THERE'S a ritual that takes place in offices at the end of the financial year called the salary review.

THERE'S a ritual that takes place in offices at the end of the financial year called the salary review. It's the discussion that determines how much you will be paid in the coming financial year.

I have had more than 25 years' experience in dealing with these reviews, on both sides of the desk, and I wish I knew in the early years what I know now about how this process works. Here's my 10-point plan to getting a better deal at this year's review:

1. Understand the process. The groundwork for a good salary review is laid at the job interview. Before accepting any job you should ask about the pay review process: who does it and how often? Some businesses offer annual reviews; I have heard of six-monthly reviews. If you have not had a salary review chat for more than 12 months there's a problem with the organisation for which you work.

2. It's not just about the money. Everyone is entitled to an annual review, including a salary discussion. Even the chief executive. In his or her case it is the chairman of the board who will "have a bit of a chat about how things are tracking". Understand that you are only entitled to a review and to a promotion if two things prevail: you have earned these rewards and the business as a whole has performed.

One of the most disappointing aspects of corporate life is to put in a blinder of a year in a year in which the broader business has performed poorly. If you are going to star, better to do so in a boom than in a downturn.

3. Only deal with people who have authority. I learnt this lesson from one of my developer clients in the 1990s. He told me never negotiate with anyone who doesn't have the authority to do the deal during the negotiation.

The same logic applies to salary negotiation. Do not have a discussion with someone who has to "get approval" from someone else; you should be negotiating with that someone else. This can be somewhat scary for young people (to deal with the "big boss") but it is necessary. And frankly it's character building; to look someone in authority in the eye and to argue your case makes you grow up.

4. Document and metricise targets. One year prior to the salary review (meaning you should have done this in July last year) agree with the person to whom you report what you intend achieving. And, most important, apply metrics. "I will sell/build/finance 100 dwellings." "I will bring in three new clients."

Make sure these targets are reasonable. If they are not then be prepared to discuss an outcome that you can live with.

5. Be prepared to have a difficult discussion. There have been times in my salary reviews, many years ago, when I was too embarrassed to challenge the review. I just accepted it when I just knew, as I well know now, that there was scope for a better outcome. The problem was that at that time I wasn't prepared to have, or didn't have the stomach for, a difficult discussion.

Do not be afraid of having a difficult discussion. When the boss says your salary review is 5 per cent when you were hoping for 15 per cent neither rant nor accept the outcome immediately. Remain silent and visibly take a breath. Nothing too dramatic, just enough to transmit that you are shocked by the offer.

Let silence do its work, then say: "I have to say I am disappointed with that figure. I did think that my case was much stronger than that."

Then say nothing. Let the reviewer sweat. Unless you are totally deluded about the real value of your contribution there will be a recalibration.

6. Have the discussion. The property industry is comprised of big corporations where salary reviews are an integral part of the corporate year and small businesses such as agencies, consultancies and builders where the salary review process is less formalised. If you have not had a discussion with the principal of your firm about your performance and salary expectations for the coming financial year, then email this column to your boss with an attached note saying: "Bernard Salt says we need to talk." Make sure the discussion is private and that calls and other interruptions are removed for 30-45 minutes.

An off-site lunch is good; the boss's authority is diminished outside the office. And he/she can't disappoint you too much otherwise they have to sit through an awkward situation for the entire meal.

7. Understand what drives the business. Find out the metrics that are driving the division or the business. If your boss is charged with increasing sales by 30 per cent over 12 months then calculate your sales contribution to this target: "I sold/delivered 100 houses which contributes 10 percentage points to your target of a 30 per cent increase in the business." This shows that you understand the business from the other side of the desk.

8. Document, document, document. Throughout the year maintain a diary of your achievements, leads that you passed on to others, examples where you have assisted other team members to sales/income success. Bear in mind that everyone arguing for a salary review will think they have done a great job. Remarkably few will have facts, evidence and examples to back up their claims.

9. Consider the two-year promotion set-up. There will be times when your bid for promotion is unsuccessful.

There are two ways of looking at this. Crack it and leave. Or view the promotion pitch as a two-year play. Let the reviewer know how disappointed you are not to be promoted, but make it clear you will be working hard and re-pitching 12 months later.

Management is impressed by people who work through initial disappointment and who remain committed to a cause. You might not get what you want this year but if you play it the right way you can set yourself up for a better chance of success next year.

10. Bosses are human, with human failings. This is a difficult fact for young people to appreciate but it has to be said. Sometimes the boss is not always a mature or emotionally secure individual. Some border on the weird. In such a situation you need to make a decision as to whether you stay or whether you're prepared to work your way through to the next level.

These types of people never ascend far up the corporate ladder. Put it down to the fact that for a few years of your working life the boss to whom you are reporting has probably -- no, definitely -- been promoted beyond his or her capabilities. Life and business isn't always fair all the time.

Bernard Salt is the author of The Big Tilt

twitter.com/bernardsalt; [e-mail]