Navigating salary discussions during performance reviews can be one of the most challenging aspects of professional development. It’s essential to approach these conversations with preparation and confidence. Below are three diverse examples of how to handle salary discussions in performance reviews, tailored for different scenarios.
You’ve been with the company for a few years and have taken on more responsibilities. You believe it’s time to discuss a salary increase that reflects your contributions.
You enter the meeting with your manager, who is aware of your performance but has not initiated the salary conversation yet. You want to approach the topic confidently without sounding demanding.
You start the conversation by expressing gratitude for the opportunities you’ve had. Then you share specific accomplishments, such as leading a successful project that increased revenue by 15% and mentoring new team members, demonstrating your growing value to the team.
You transition into the salary discussion by saying, “Given my contributions and the additional responsibilities I’ve taken on, I would like to discuss my current salary and the possibility of a raise.” This sets a positive tone and opens the door for negotiation.
You’ve learned that the company is undergoing financial difficulties, which may lead to a salary freeze. You feel it’s important to address your compensation despite the current situation.
In your performance review, your manager brings up the financial constraints. You respond by acknowledging the situation, saying, “I understand that the company is facing challenges right now, and I appreciate the transparency.” Then you can pivot the conversation by mentioning, “Given my performance and the impact of my work, I would like to explore potential options for recognition that doesn’t necessarily involve a salary increase, such as additional responsibilities or professional development opportunities.”
This approach demonstrates your understanding of the company’s situation while still advocating for your growth.
You have researched salary benchmarks for your position in the industry and found that you are underpaid compared to your peers. You want to bring this up during your performance review without sounding confrontational.
You begin the conversation by highlighting your achievements over the past year, such as completing a certification that enhances your skills and leading a high-impact project. Then, you gently introduce the topic of salary by saying, “In preparing for our discussion today, I came across some industry salary benchmarks for my position. I noticed that my current salary is below the average for similar roles.”
You then present your findings in a constructive manner, stating that you would like to discuss aligning your salary more closely with industry standards, emphasizing your commitment to the company and how this adjustment could motivate you to contribute even more.