Different reactions to the rejected salary request
A rejected salary increase is less often the reason for a change of employer than Swiss supervisors believe. The majority of finance managers in Switzerland fear termination if they reject an employee's salary request. In fact, a rejected salary increase is the trigger for only 15 % of the employees surveyed to look for a new job. This is shown by the study results of the specialized personnel service provider Robert Half.
Robert Half's labor market study underscores the fact that there is no such thing as the exact right time for salary negotiations.
Employees are much more patient than bosses assume: The majority (45 %) of the 5,000 employees surveyed in Europe wait for the next appraisal interview to repeat the pay request if the request for a higher salary is rejected. Only one in five finance executives (22 %) in Switzerland expects this reaction. Just as many (22 %) executives assume that the employee will then ask for other benefits, such as flexible working hours or other allowances. In reality, less than one in three employees (27 %) ask for alternative offers.
Employees complain much less often than managers assume
One in six bosses (16 %) also believe the employee would complain in the office or at home about being turned down for a raise. However, only 3 % of the surveyed employees agree with this.
"In our consulting practice, we repeatedly find that there are communication gaps between management and employees. As the labor market study shows, this also affects salary discussions. Employees do not make optimal use of their negotiating leeway," explains Sven Hennige, Senior Managing Director Central Europe & The Netherlands at Robert Half. "The good news is: employees may dare to put forward their wishes and should not be intimidated by objections from the boss. However, they must go into salary negotiations well prepared, clearly express their wishes and be open to alternative offers from their manager."
Robert Half asked, "How do employees react when you deny their request for a raise / How do you react when your boss denies your request for a raise?"
Respondents:
- CFOs
- Office employee
Responses:
Waiting for the next performance review to ask for a raise again
1.) 22 %
2.) 45 %
Ask for something else (more additional benefits, training, other tasks in the company with higher salary)
1.) 22 %
2.) 27 %
Looking for a new job
1.) 32 %
2.) 15 %
Complain to friends, colleagues and/or partner
1.) 16 %
2.) 3 %
Other/ No reaction
1.) 8 %
2.) 9 %
(Source: Robert Half, Labor Market Study 2016 and Job Study 2015, Respondents: 100 CFOs in Switzerland and 5,000 office employees in Europe)
Checklist
Negotiation tips for the salary interview: How to refute objections.
Popular objection #1: "I'd like to, but unfortunately I can't".
Manager: "I can't decide that. I'd love to give you a higher salary, but that's up to management. And they probably see it differently."
Professional response, "What increase do you personally feel is appropriate?"
Popular objection #2: "Annual increase is too frequent."
Manager: "What do you mean, you want more money again? I just gave you a raise last year!"
Professional answer: "That's true, but since then, however, my area of responsibility has increased significantly (alternatives: I have broadened my qualifications/acquired important clients/achieved some notable successes).
I believe this warrants another increase."
Popular objection No. 3: "Bad timing".
Executive: "This is a very bad fit right now. Let's talk about it again in the new year."
Professional response, "However, my request requires an earlier appointment as I now have accomplishments/successes to show that warrant an adjustment. If today is not at all convenient for you, then we are happy to schedule an alternative appointment in the next four weeks."
Under this Link you will find more suggestions on how to properly respond to the most common objections
