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Strategy asking for substantial raise

Question

This question is to help someone decide how to approach a demand for a substantial raise in salary, and the question comes at the end. Since graduation 7 years ago he’s been working with the same company: good professional progress, his work is appreciated, personal relations are good. Over time, he received some salary raises. They were not quite satisfying but acceptable because he enjoys working at the company and feels stable there.
He recently talked with someone who knows a good deal about current salary levels and found that he is now being substantially underpaid in comparison to people with equivalent experience working elsewhere. He got an appointment with the boss to ask for a substantial raise but is not sure how to approach between using a soft touch based on what he has been doing for the company or a strong demand that includes at least the implication if not outright challenge that he might look for a job elsewhere if they do not do him justice.
He is a talented and dedicated young man, but the job market situation is not so great. How do you think he should approach the matter in the interview? It would be great to get some opinions.

MeHa

Annual salary increases are often controlled by an industry collective agreement and pegged to local cost of living increases. In Belgium, your salary may depend on your age. Salary levels rarely appear in job advertisements, the desired age range will give you an idea of what an employer is willing to pay. Is the said person working under a Belgian contract? If so any increase is governed

May 19, 2016 15:52
anon

"at least the implication if not outright challenge that he might look for a job elsewhere if they do not do him justice."

That is a totally stupid strategy. Mainly because most employers that I know will just accept the challenge.

"So, you can get a much better salary somewhere else, ok fine. Good Luck."

If his employers aren't paying him a proper salary, and he is so good that he deserves a substantial salary increase, his only option is to find another job that will pay him that substantially larger salary.

May 19, 2016 16:00
Mikek1300gt

""That is a totally stupid strategy. Mainly because most employers that I know will just accept the challenge.""

Which would be a totally stupid strategy if they know the guy is worth more than they are paying.

May 19, 2016 17:07
anon100

What strange responses!

His problem is sadly not uncommon. He is being taken advantage of because he is loyal and has remained working there for so long. It's the people that are mobile, have moved around a bit and are prepared to move jobs (to another country if necessary) in order to climb the ladder that usually earn the higher salaries!

Not sure what he does for a living but my first observation is that 7 years is quite a long time to remain with an employer, especially at the start of a career, without knowing him I would assume that he is possibly not that hungry for it! Maybe his employers think the same, that he is happy and not bothered enough to move on so they pay him as little as they think they can get away with.

There is that saying..... don't threaten to leave if you don't mean it! It will make him look stupid and will forever undermine any future negotiations.

If I was him I would do more research on the market place, think about what my selling points were, what things I did better than my peers. If I really liked my job and didn't want to leave I would approach it a bit more softly, take a positive approach. Mention that I wasn't happy with my pay and that I knew it was lower than industry standard and that I wanted to work with them to rectify that and also talk about what extra responsibility I could take on. Future promotions, training and where my career was going. Basically try to turn it into a conversation about what could be done that was mutually beneficial! If I was happy to think about leaving and moving on then I would look for another job first and then hit them hard. Either they play ball or you move on.

Even if he took the softly approach he should be able to get across his dissatisfaction about pay and if they like him and don't want him to leave they will do something about it!

May 19, 2016 19:14
J

Ask for a substantial raise.

It seems a bit daft for the company to not pay the market rate an put him in a position whereby he has to leave to get a fair salary, as they'd have to go through the pain of recruiting for his post again, for which they would have to pay that salary anyway, and with all the risks that a new employee would bring.

Paying him what he's (now) worth is a win-win situation.

May 20, 2016 11:29
becasse

It isn't a win-win situation for the company if other employees are also paid "below the market rate". It may come as a surprise to some but in many companies employees are happy with their lot, if they are paid adequately and they feel that they are treated fairly that feel that that is quite sufficient no matter what the "market" rates may be. The crucial issue here is being treated fairly and if Mimi can go to her bosses and demand and get a lot more pay then the others will expect to have their pay upped too regardless of whether the company can afford it.
If I were Mimi's boss and was asked for a substantial rise to the "market rate", I would simply reply that I took that as an immediate resignation without notice and that Mimi's personal effects would be sent down for collection at reception and that any outstanding pay would be withheld in lieu of notice.
Of course, if Mimi were sufficiently bright, there would be subtle soundings about did the bosses realise how much more comparable staff were paid elsewhere, but such soundings might well fall on deaf ears and perhaps rightly so. People who work for a company because they enjoy working there are worth far more than people who only come to work because they are bribed to do so.

May 20, 2016 16:43
Mimi

UPDATE
My thanks to everyone who responded, particularly ANON100 for the detailed and studied response, but that does not diminish anyone else's contribution. Differences of opinion is what makes a discussion.
The meeting went very well, he received a LOT of praise and was told that a considerable raise will be considered.

May 20, 2016 22:02
Mimi

............... Mikek1300gt and J made the best predictions!

May 20, 2016 22:06
CC_R

I know someone always says salary is relative are you happy at work can you live on it? He also works for a major multi national has done so for many year always recieves an above average or outstanding performance review every time some times less as bonus is linked to it not because he did worse and they only certain budget for bonus. He knows he was paid substantially less than many less well performing peers the salary band is massive he was way below average when it came to localising the family simply could not afford to buy here having lived in a relatively cheap area in the uk. He went to HR they basically told him you don't like it leave. He told his boss and managed to find a wreck of a house in the back waters so bought it because renting was too expensive given family needs. . His boss then gave him a discretionary pay rise that year and the next because he recognised the value of this employee. So I have to say it happens a lot if they are happy in work and work hard the company see no need to make it better so the choices is walk for a better salary or decide you're happy with your lot

May 22, 2016 10:22