You're listening to Business English Pod, the Business English podcast for professionals on the move.
Welcome back to Business English Pod.
My name's Jennifer and I'll be your host for this episode, the second of a two-part series on asking for a pay raise.
Asking for a pay raise is a two-step process.
Before any discussion of compensation begins, it's important to state your case and demonstrate why you deserve a raise.
Let your boss know your achievements and your value to the company.
The second part involves negotiating.
This is the time to start talking about specific numbers and benefits, but it must be handled diplomatically.
You'll need to outline what you want, acknowledge the other party's concerns and bargain for the best deal.
In the last episode we listened to Ryan, a salesman at a company called Pylon, present his case to his boss, Jacob.
Ryan pointed out that his relationship with Alliance builders brought in more sales overall.
He also took on some web design work in addition to his sales duties.
Now Ryan and Jacob are ready to start negotiating Ryan's compensation.
As you listen to the dialogue, try to answer the following questions.
1.
How much does Ryan think he should receive for the web design work?
Why?
2.
Why can't Jacob give Ryan the amount of money he wants?
3.
What do Jacob and Ryan agree to in regard to alliance builders?
Okay, let's see what we can do.
Keep in mind that anything discussed today will have to be approved by HR, but I'm willing to work with you.
Thanks, Jacob.
I appreciate that.
So let's start with a website.
That was a great effort.
How does an extra $3,000 sound?
Thanks, but don't you think that figure is a little low?
After all, Jill said it would cost at least $5,000 to hire an outside designer.
I developed the site on my own at a significant savings to the company.
I feel something closer to $6,000 would be more appropriate.
I see your point.
But listen, to some degree, my hands are tied.
I have a bit of leeway in the budget, but There's not much wiggle room.
I understand.
You're in a tough spot.
Still, think of that savings.
If it hadn't been for me, the company would have spent considerably more than $3,000.
At least $6,000, I think, when all was said and done.
Well, then how about this?
The max on my discretionary budget is $5,000.
What would you say to that if HR approves?
Hmm.
Well, considering your position, I can meet you halfway.
Thanks, Jacob.
Glad to do it, Ryan.
Now let's talk about your business development.
Okay.
Obviously, client relationships are important.
We've had huge success with Alliance.
This is something I took up with Charlie because I thought it was just the type of thing we should be rewarding.
So I'm prepared to offer you an additional 1% across the board on every sale from Alliance.
How does that sound?
That sounds great.
Terrific.
Now, was there anything else?
I think that's it.
Can I just make sure we're on the same page?
The 5000 is there conditional on HR and you're offering 1 across the board on every sale from Alliance.
That sounds like a pretty good deal.
I'm glad you think so.
Why don't we touch base in a week or two and we can iron out the details?
Sounds good.
There's a lot going on in Ryan and Jacob's conversation, so let's take a closer look.
Okay, let's see what we can do.
Keep in mind that anything discussed today will have to be approved by HR, but I'm willing to work with you.
Thanks, Jacob.
I appreciate that.
First, Jacob mentions that anything discussed will have to be approved by the company's HR department.
He wants to make sure Ryan understands that, even though he is Ryan's boss, he still needs to consider company policies.
But by saying, I'm willing to work with you, Jacob signals that he's able to negotiate.
What happens next?
Jacob is the first to mention a dollar figure.
So let's start with a website.
That was a great effort.
How does an extra $3,000 sound?
Ryan is not satisfied with this amount, but he needs to say so politely and diplomatically.
Let's hear how he does it.
Thanks, but don't you think that figure is a little low?
After all, Jill said it would cost at least $5,000 to hire an outside designer.
I developed the site on my own at a significant savings to the company.
I feel something closer to $6,000 would be more appropriate.
Ryan starts by softening his dissatisfaction.
He thanks Jacob for the offer and then says it's a little low.
Next, he explains why he thinks he deserves more.
Notice how he uses the figures he's researched.
The fact that his colleague Jill expected to pay at least 5000 for an outside designer clearly demonstrates why 3000 is unacceptable.
To conclude, Ryan again softens his tone by using phrases like something closer to 6000 and would be more appropriate.
In this way, he doesn't cast Jacob's offer, or Jacob himself, in a negative light.
This keeps the avenues of negotiation open.
Responding to an undesirable offer takes practice.
It's important to clearly explain why the offer is unsatisfactory while remaining diplomatic.
Let's listen to some other ways to achieve this.
Thank you, but that number sounds a bit low to me.
That offer isn't quite what I had in mind.
Thanks.
Unfortunately, I don't feel that fairly reflects the work I've done.
I'm sorry, but that won't work for me.
Next, Jacob and Ryan discuss their positions in more detail.
I see your point, but listen, to some degree my hands are tied.
I have a bit of leeway in the budget, but there's not much wiggle room.
Jacob understands what Ryan is saying, but his hands are tied.
This means he's prevented from giving Ryan the amount he wants.
He has a limited budget to work with.
Leeway is extra room to accommodate something.
The leeway in Jacob's budget means there's a bit of extra funds available.
Wiggle room is a term similar to leeway.
When Jacob says there's not much wiggle room in his budget, it means that while there are some extra funds available, there isn't much flexibility.
How does Ryan respond?
I understand.
You're in a tough spot.
Still, think of that savings.
If it hadn't been for me, the company would have spent considerably more than 3000 at least 6000, I think, when all was said and done.
Ryan acknowledges Jacob's situation.
A tough spot is a difficult position.
By acknowledging this, Ryan shows Jacob that he's being reasonable.
Ryan knows Jacob would like to offer better terms, but that some things are out of his control.
Acknowledging the other side of an argument is an effective negotiating strategy.
It shows consideration and respect for the other side.
It's fairly simple to do this, as the following examples illustrate.
I know you don't have much to work with.
I understand your dilemma.
I know you have other people to consider.
I recognize that you're not the only decision maker here.
But this doesn't mean Ryan gives up.
He reminds Jacob that his web design skills saved the company a significant amount of money.
Again, he uses dollar amounts to explain his point.
He believes the company would have spent at least 6000 when all was said and done, that is, when the website project was completely finished.
Ryan's persistence keeps the negotiation open, but notice that he does this politely, without becoming an adversary.
Let's practice a few more ways to be politely persistent.
Let me explain more about how my expertise helps the company.
When I joined the firm, 14 clients came with me.
That's worth quite a bit, don't you think?
Keep in mind that I'm the only employee who can speak both Russian and Spanish.
That helps our client base.
I have more experience handling the media than anyone else in our department.
It's important to project a positive image.
Ryan's persistence pays off.
Well, then how about this?
The max on my discretionary budget is $5,000.
What would you say to that if HR approves?
Hmm.
Well, considering your position, I can meet you halfway.
Thanks, Jacob.
After hearing Ryan's last pitch, Jacob reconsiders his discretionary budget and decides he can offer more.
A discretionary budget consists of funds that can be freely used by a manager as they see fit.
With this budget, Jacob is free to offer Ryan 5000, although it's still subject to or dependent on HR approval.
Although Ryan doesn't get the $6,000 he's looking for, he understands Jacob's position.
$6,000 would be impossible.
5000 is the best that jacob can do in this light.
Ryan says he can meet jacob halfway.
This means both he and jacob are making concessions on this point.
Jacob is giving more than he originally planned and ryan is accepting less than he wanted.
The halfway aspect of this term is not always literal.
In this case, Jacob is giving more than Ryan is conceding.
When negotiating a pay raise, sometimes you need to make compromises.
Here are some ways to signal this.
I'm willing to compromise.
I can make a few concessions.
If you can make that one adjustment, we'll have a deal.
I think we can work something out.
I see your point.
With the website matter settled, Ryan and Jacob are ready to start discussing the relationship with Alliance builders.
Jacob starts.
Obviously, client relationships are important.
We've had huge success with Alliance.
This is something I took up with Charlie because I thought it was just the type of thing we should be rewarding.
So I'm prepared to offer you an additional 1% across the board on every sale from Alliance.
How does that sound?
That sounds great.
Ryan's efforts with Alliance haven't gone unnoticed.
In fact, Jacob has discussed the matter with Charlie, his boss, noting that successful client relationships are worth extra compensation.
Jacob offers Ryan an additional 1% across the board on every sale from Alliance.
Let's look at this offer in detail.
As a salesman, Ryan is mainly paid by commission.
That is, his income is generated by the sales he makes.
He earns a certain percentage on every sale.
This pay structure gives him the incentive to make as many sales as possible.
But Ryan has a special relationship with Alliance Builders.
He has passed along leads to other salespeople, increasing Pylon's profits even more.
Without Ryan, Pylon would not have this extra revenue.
Therefore, Jacob wants to give Ryan some extra compensation for his effort.
He offers Ryan an additional 1 commission across the board.
An extra 1 on every sale made with Alliance, whether Ryan is the main salesperson or not.
In other words, if another salesperson makes a sale with Alliance, Ryan will still get 1 commission from that sale.
Ryan accepts this offer and Jacob asks if there is anything else he'd like to discuss.
Ryan responds.
I think that's it.
Can I just make sure we're on the same page?
The 5000 is there conditional on HR and you're offering 1 across the board on every sale from Alliance.
That sounds like a pretty good deal.
Here, Ryan takes a moment to summarize and confirm what he and Jacob have agreed to.
In other words, he wants to make sure they're on the same page.
He repeats the $5,000 figure and the 1% commission on every sale from Alliance.
Summarising and confirming what's been agreed is an important step in ending a pay raise discussion.
By doing this, you can verbally make sure everything is all set before it is put into writing.
Also, if you and your boss are not on the same page, you can discuss any discrepancies and clarify points.
It's best to be very specific in these situations.
Any figures or special considerations should be repeated clearly, as in the following examples.
So if I understand correctly, I'll be able to work from home two days a week starting in January.
Just to recap what we agreed.
The company will reimburse my travel expenses from now on.
Is that right?
So, we've agreed that performance reviews will now be scheduled quarterly instead of annually.
Just so I'm clear, the company will pay 75% of my expenses if I decide to get an MBA?
Now Ryan and Jacob end their discussion.
I'm glad you think so.
Why don't we touch base in a week or two and we can iron out the details?
Sounds good.
Jacob suggests touching base or following up in a week or two so that he and Ryan can iron out details.
This means they'll discuss more specific aspects of Ryan's new compensation package and likely sign any necessary forms or contracts.
Now let's practice some of the language and strategies we've looked at today.
We'll start by practicing language you can use to respond to an undesirable counteroffer.
In this exercise, you'll hear a counteroffer followed by a prompt.
Use the language from the prompt to form an answer to that question.
For example, if you hear What if we offered you a 2% increase?
A bit low.
You can say Thank you, but that sounds a bit low to me.
We'll play an example answer after each one.
Are you ready?
Let's give it a go.
Won't work for me.
Example answer.
I'm sorry, but that won't work for me.
We can't offer much more money, but we can give you a bigger office.
What I had in mind.
Example Answer Sorry, but that's not quite what I had in mind.
We can give you a bonus of $2,000.
Doesn't reflect the work I've done.
Example Answer Thanks, but that doesn't really reflect the work I've done.
Now let's practice some language you can use to acknowledge the other side of the argument and be politely persistent.
Imagine you're discussing your compensation package with your boss.
He or she says, my hands are tied.
How can you respond politely but still continue your pitch for a pay raise?
Use the prompts that follow to construct your response.
We'll play an example answer after each one.
For example, if you hear, Tough spot.
Saved the company money.
You could say i know you're in a tough spot, but remember i've saved the company a lot of money.
Ready, let's begin.
Difficult position more experience example answer.
I realize you're in a difficult position, but keep in mind that I have more experience than other employees.
Dilemma Employees with MBAs Higher pay.
Example Answer.
I understand your dilemma, but employees with MBAs usually get higher pay.
Not much to work with.
Fairly compensated.
These new duties.
Example Answer.
I know you don't have much to work with, but I do think I should be fairly compensated for these new duties.
Limited Budget Managing More Employees Example answer.
I know you have a limited budget, but please remember that I'm managing more employees now.
We've reached the end of this episode, the second of a two-part series on asking for a pay raise.
We've covered strategies to politely and professionally negotiate a compensation package and some of the language you can use to achieve your goals.
For more practice, Premium members can access the online quizzes and study notes for this and other episodes in the new Learning Centre.
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Thanks for listening, and see you next time.
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