A very popular question in the HR field: How to properly formalize an increase in employee salaries?
Employee salaries are established in the staffing table. Therefore it is necessary make changes to the staffing table , reflecting the new increased salaries. Changes in the staffing table (new staffing table) are approved by order in the manner adopted by a particular employer. The order is recorded in the appropriate accounting journal, for example, in the order register. Often the approval of new staffing table(with new salaries) according to the organization’s charter is allowed only if a decision is made on this general meeting members of the organization. Such requirements can be established in relation to the salaries of the head of the organization, his deputies, and the chief accountant. Look at the charter of your organization. It is possible that you have established the specifics of approving a new staffing table and making changes to it. If this is the case, then you need to comply with them.
The new staffing table is registered in accordance with the procedure established by the employer.
If necessary, changes in salary amounts are reflected in other local regulations of the employer, for example, in the regulations on wages. Employees are informed about changes in local regulations in the manner established by the employer.
According to Art. 57 of the Labor Code of the Russian Federation, the terms of remuneration (including the size of the tariff rate or salary (official salary) of the employee) must be specified in the employment contract with the employee. Accordingly, the change in salary must be reflected in the employment contract.
We have already written that in rare cases, employees do not agree to an increase in salary (when, due to income growth, they lose some social benefits). But in most cases, the employer does not encounter any objections from employees regarding salary increases.
According to Art. 72 of the Labor Code of the Russian Federation, changes in the terms of the employment contract determined by the parties are allowed only by agreement of the parties to the employment contract, with the exception of cases provided for by the Labor Code of the Russian Federation. An agreement to change the terms of an employment contract determined by the parties is concluded in writing.
Thus, after approval of the new staffing table additional agreements are being prepared for employment contracts with employees (agreements on changing the terms of the employment contract determined by the parties) .
The agreement with each employee is drawn up in two copies (one for each party), if large quantity No copies are provided for this employer.
The agreements signed by the parties are registered in the manner established by the employer, for example, in the register of agreements for employment contracts with employees.
The employee’s receipt of a copy of the agreement should be confirmed by the employee’s signature on the copy of the agreement remaining in the custody of the employer. We recommend that you put the phrase “I have received a copy of the agreement” before your signature.
In some organizations it is also customary to issue an order to change the terms of employment contracts with employees determined by the parties, but the Labor Code of the Russian Federation does not oblige this to be done. If an order is issued, it is registered in the manner prescribed by the employer, in the appropriate registration journal.
Please note that if salaries increase due to wage indexation, the registration procedure may be established by regulations, collective agreements, agreements, local regulations of the employer (depending on the categories of employees and employers). According to Art. 134 of the Labor Code of the Russian Federation “ensuring an increase in the level of real wages includes indexation of wages in connection with the growth consumer prices for goods and services. Government bodies, local governments, state and municipal institutions carry out wage indexation in the manner established by labor legislation and other regulatory legal acts containing standards labor law, other employers - in the manner established by the collective agreement, agreements, local regulations." When registering a salary increase in this case, you should take into account the specifics of the procedure established by the listed documents.
Newcomers often ask: should salary changes be reflected in the employee’s personal card (unified form No. T-2)? Form No. T-2 provides for the indication of salary in section “III. Hiring and transfers to other jobs.” For cases of salary changes not related to hiring and transfer to another job, there is no column for mandatory indication of salary. If your organization still deems it necessary to record salary information in card No. T-2, then this can be done in the “X. Additional information".
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The beginning of the year is the time when many organizations carry out indexation and increase wages for their employees. It would seem that everything is simple here. Indexation is an increase in wages due to rising consumer prices for goods and services.
A salary increase is an increase in its size by decision of the employer and in the presence of financial capabilities. However, many people confuse these concepts. What do indexation and wage increases have in common and what are the differences? How often should salaries be indexed and how often should they be increased? What responsibility will the employer bear if he does not carry out indexation?
What do indexation and wage increases have in common and what are the differences?
Both indexation and wage increases are aimed at increasing wages. Indexation aims to ensure an increase in the purchasing power of wages. By its nature, indexation is a state guarantee of wages for workers (Article 130 of the Labor Code of the Russian Federation, definition Constitutional Court RF No. 913-О-О).
Raising salaries sets the same goals. At the same time, indexation is not formally an increase in wages, since the real content of wages remains unchanged. Indexation is only a way to protect workers' income from inflation.
In the case of a salary increase, it increases compared to the one that was previously established. In addition, there are other differences between these concepts (table below).
Differences between indexation and wage increases
| Evaluation criterion | Wage indexation | Salary increase |
|---|---|---|
| Degree of obligation | Mandatory for any employer: both public and commercial organizations | Not mandatory, carried out at the request of the employer |
| The circle of persons who are provided with an increase in wages | Conducted in relation to all employees of the organization (determination of the Constitutional Court of the Russian Federation No. 913-О-О) | Carried out in relation to the employee(s) whom the employer chooses independently |
| Factors influencing salary increases | Increase in consumer prices for goods and services | The employer's decision and his financial capabilities |
| Coefficients used when increasing wages | The consumer price index, which is published on the Rosstat website, is the official inflation rate | Any indicators established by the employer independently |
How often should salaries be indexed and how often should they be increased?
Attention!
If local acts do not contain a procedure for indexing wages, the employer may be held liable, even if it annually increases official salaries (decision of the Zavodsky District Court of Novokuznetsk, Kemerovo Region dated October 13, 2011 in case No. 12-153/11)
Frequency and periodicity of salary indexation in Labor Code not installed. At the same time, if an increase in consumer prices is officially recorded, it is necessary to index wages.
The procedure for this procedure for public sector employees is established by labor legislation, and for commercial organizations - by a collective agreement, agreements, and local regulations (Article 134 of the Labor Code of the Russian Federation).
If such provisions are not present in the organization’s documents, then appropriate changes must be made to them (letter of Rostrud dated April 19, 2010 No. 1073-6-1).
In practice, it often happens that the company’s local act specifies the indexation procedure, but the financial and economic indicator for its implementation is not selected. In such a situation, when an employee files a complaint, the court may apply the consumer price growth index calculated by state statistics bodies (cassation ruling Supreme Court Republic of Bashkortostan dated February 8, 2012 in case No. 33-1256/2012).
In some cases, the indexation procedure and mandatory indicator may be provided for by industry agreements. Thus, for some employers there is an obligation to ensure quarterly indexation of wages in accordance with the increase in consumer prices for goods and services (according to Rosstat) 1
Typically, wage indexation occurs in the following cases:
- increasing the minimum wage (when employee wages are lower than the minimum wage);
- increase in inflation rate;
- rising consumer prices in your region;
- growth in the cost of living of the working population in Russia or in the region;
- inflation fixed in the law on the federal budget or in the law on the regional budget.
In turn, a salary increase is a right, not an obligation, of the employer and therefore can be carried out at any time, regardless of any factors. Most often, employees receive salary increases in the following cases:
- increasing the productivity of the organization’s employees;
- increasing company revenue;
- if this is provided for in a collective agreement or other local act.
How to index salaries if the organization does not have a collective agreement?
In the absence of a collective agreement, the employer can establish the procedure and frequency of wage indexation in any other local act, for example, in the regulations on wages (sample below). Typically, indexation is carried out on the basis of an order from the head of the organization (sample below).
It should be noted that the employer, when issuing an order to increase the employee’s wages in connection with indexation, cannot use the transfer order form (No. T-52)2 if the employee’s labor function and the structural unit in which he works do not change.
Is it necessary to enter into an additional agreement with the employee when indexing his salary?
Conditions of remuneration (including the size of the tariff rate or salary (official salary) of the employee, additional payments, allowances and incentive payments) are mandatory for inclusion in the employment contract (paragraph 5, part two, article 57 of the Labor Code of the Russian Federation). Therefore, each time when indexing an employee’s official salary, it is necessary to conclude an additional agreement to the employment contract and indicate new size official salary (rate).
The agreement must refer to the norm of the local act on indexation as the basis for changing the amount of remuneration (Article 134 of the Labor Code of the Russian Federation).
Inflation is a reason for indexation
An employee in a statement of claim may directly refer to inflation as a basis for wage indexation. The presence of inflation is considered a generally known fact and cannot be proven in court. An explanation of this is contained in many decisions (ruling of the St. Petersburg City Court dated March 21, 2011 No. 3866, ruling of the Moscow City Court dated November 16, 2010 in case No. 33-32596, ruling of the Presidium of the St. Petersburg City Court dated February 13 2008 No. 44g-36).
The indexation clause may be contained in the employment contract concluded upon hiring (sample below). If this condition was not initially included in the document, then the employer can proceed as follows:
- conclude an additional agreement to the employment contract, providing for a condition on wage indexation. This option is suitable for organizations that do not plan to frequently change the indexing procedure;
- draw up an additional agreement for each wage indexation, indicating in it a specific indexation coefficient and a link to the clause of the local regulatory act. This method is optimal for companies that often change the indexing order in the local normative act
What liability does an employer face if he forgets to carry out indexation?
Many employers deliberately do not index wages. Administrative liability is provided for such a violation.
If there is a provision for wage indexation in a collective agreement or industry agreement, but the employer does not carry it out, then he will be brought to administrative liability in the form of a fine of 3,000 to 5,000 rubles (Article 5.31 of the Code of Administrative Offenses of the Russian Federation).
If indexation is not provided for in the local act and, accordingly, is not carried out, then a fine in the amount of 1,000 to 5,000 rubles may be imposed on the head of the organization, and in the amount of 30,000 to 50,000 rubles on the organization (Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation) .
In addition, an employer who does not carry out indexation may incur material costs if the employee goes to court with a corresponding claim (Articles 236, 391 of the Labor Code of the Russian Federation). The court may oblige the organization to pay the employee the amounts due for indexation for several years (decision of the Severo-Kurilsky District Court of the Sakhalin Region dated February 19, 2013 in case No. 2-16/2013).
Remember the main thing
Note the experts who took part in the preparation of the material:
Ekaterina Shestakova– K. Yu. Sc., General Director of Actual Management LLC (Moscow):
– Indexation of wages, as opposed to increasing them, is the responsibility of the employer. Even if an organization regularly increases wages for employees without indexing them, this leads to a violation of labor laws.
Lali Chitanova– lawyer, partner of the Law Firm “VASILIEV and Partners” (Moscow):
– If the organization does not have a collective agreement, then the conditions, procedure and frequency of indexation can be reflected in any local act. This may be a provision on wages, wage indexation, etc.
Alena Shevchenko– lawyer, expert of the magazine “Personnel Business”:
– When carrying out indexation, the employer must draw up an additional agreement with the employee to the employment contract. This must be done every time the company changes the amount of wages.
1 Clause 27 of the Industry Agreement on the Organizations of Press, Television and Radio Broadcasting and Mass Media between the Federal Agency for Press and Mass Communications and the Russian Trade Union of Cultural Workers for 2012–2014, approved by the Russian Trade Union of Cultural Workers, Rospechat on December 7, 2011.
2 When records are kept according to forms approved by Decree of the State Statistics Committee of Russia dated January 5, 2004 No. 1
The problem of finding ways to effectively motivate employees worries most employers. Some improve the psychological microclimate, others increase the comfort of working conditions, but few employers will deny the well-known truth: the best incentive is an attractive salary. And if management pretends to have forgotten about the power of the material factor, then a memo for a salary increase will help remind him of this.
Normative base
The very right to communicate with an official or official at any level is regulated federal law on the appeal of citizens of the Russian Federation, 59-FZ. It determines that a citizen individually or their association can contact the selected object and receive a comprehensive answer if the question lies in the area of responsibility of the addressee.
Since the same mechanism fully works in relations with company managers, employees can rely on Law 59-FZ in this case as well. However, for internal business correspondence a more common form is considered to be a report and. Unified forms for these documents are not provided, but when preparing them, it is recommended to pay attention to GOST 6.30-2003 USORD. Its norms must be applied both when filling out the “header” and composing the content.
In addition, in the matter of sending a memo for a salary increase, the local acts of the enterprise come to the fore:
- wage regulations;
- collective agreement;
- contract of employment;
- staffing schedule;
- set of job descriptions;
- agreement with the trade union organization.
After all, they most often contain specific criteria and conditions for increasing wages in a particular company.
If the salary increase is provided for by the internal regulations of the company, then the request stated in the memo is subject to unconditional satisfaction.
Instructions for preparing a note
Each official memo at the enterprise, of a kind, creative work. This does not apply, of course, to its formal part; it is precisely regulated by GOST 6.30-2003, and must contain:
- name of the addressee's position and name of the institution or organization;
- Full name of the addressee;
- indication of the position and full name of the author;
- the title “Memo” and a brief description of the topic of the appeal;
- content part;
- list of applications, if available;
- date of writing the document and personal signature of the applicant;
- data on the registration of paper in the relevant journals of incoming documentation (number and date of filing).
The greatest difficulty is in drawing up the content of the document, since it requires justification and argumentation. It is desirable that the author’s position be supported by actual results or references to legislative and local acts. Here are just the most popular:
| Reason for salary increase | Justification for the salary increase in the memo |
| Inflation or other unfavorable financial processes throughout the country | An attempt to simply write “look at the prices” in an appeal is evidence of incompetence and a superficial approach to document preparation. It is better to refer to official data from RosStat or conduct a mini-research and provide your list of products whose prices have risen sharply recently. Indirectly, this right is confirmed by Art. 135 TK. Accordingly, product items must be vital and not touch objects increased comfort or luxury |
| Combining positions or expanding the range of responsibilities (in fact) | If verbal requests from your immediate superior to perform some additional work have become regular, then you should not wait for the moment when they smoothly turn into orders. In the text of the memo for a salary increase, it is worth including a list of tasks that go beyond the scope of the employee’s employment contract, which he has recently performed, and offer management to charge payment for them |
| Expanding the list of functions at the request of the employee | The specialist himself can initiate an increase in his own workload in exchange for an increase in earnings. Then the amount of payment will be calculated based on the staffing table. The applicant himself needs to justify his ability to perform advanced functions (attach a document on advanced training, receipt of an academic degree or specialized education at a university, a patent for an invention or a certificate of training in the specified field) |
| Long and conscientious work in the company | This is obviously not a very strong argument, since valuable employees, as a rule, receive promotions and salary increases from their superiors on a regular basis. If a long-term employee does not receive the attention of management, then perhaps the lack of penalties is evidence of normal discipline, and not the value of personal achievements. That’s why, before writing a memo for a salary increase, you need to soberly assess the employee’s own merits |
| Lack of salary revision for a long time or discrepancy between the employee’s salary and the income of specialists in similar positions | If the staffing table, in terms of wage tariffs, has not changed for several years, then the employee can use this as an argument to support his request to revise his salary. Its credibility can be increased if we also provide inflation indicators for this time. And in the case of an unfair approach to setting salaries for similar positions within the company, you need to insist that the list of duties and level of responsibility for such specialists is the same or comparable. |
| Gaining unique personal skills or achievements | If an employee’s personality helps the company receive additional profit that another specialist of the same qualifications cannot bring, then the management should hint at a personal increase. For example, those who attract larger number clients, relying on personal connections and acquaintances. As an option, you can consider increasing your salary as a percentage of the attracted turnover. |
Check out an example of a memo on our website ().
At the discretion of the manager
The need to draw up a memo for a salary increase and look for a sample of it in the personnel department or the Internet arises only if the idea to raise salaries did not originate in the head of the head of the enterprise, but in one of the heads of his departments. The form in this case is not the most important thing; it is better to focus on ensuring that the director, who quite possibly does not know the employee named in the note personally, does not doubt the need to revise his monthly income upward.
If collective or employment contract It is not stated how, when and for what an employee can count on a salary increase, then the decision on this remains at the discretion of the manager, even if the reason in the memo is more than valid.
Submitting a note
The idea of increasing the salaries of subordinates, although considered important point in developing a system of employee motivation, rarely occupies a dominant position in the director’s mind. Most often, the impetus for revising the salary policy in relation to an individual employee or team is a memo for a salary increase from one of the middle managers. In general, the process takes place in several stages:
- Showing initiative. The employee himself may hint about a desire to qualitatively improve his financial situation, or the head of his department will decide to improve the situation.
- Actually drawing up a memo and sending it to a higher-ranking manager or functionary who has the right to make such decisions.
- Registration of an internal message in the journals of incoming correspondence or sending it by mail.
- Reviewing the proposal and preparing a response.
- Consent is usually expressed in the form of an order to increase wages and change the staffing table. The refusal is sent by the same internal document, often in the form approved in the document flow regulations in the company.
- Increased salaries are expected for employees starting next year calendar month, unless otherwise established in the issued order for the enterprise.
Those who expect a quick response from their superiors will have to be patient. Law 59-FZ allows an official to review all documents within 30 days, unless it was sent by special categories of persons.
Another good thing is that to an appeal submitted in writing, the manager must respond in the same form. This means that if there are grounds, the refusal stated on paper can be appealed to labor inspection or court. Naturally, this matter will have prospects only if the procedure for increasing wages is approved in the local acts of the enterprise, and the management refuses to implement it.
Common mistakes in statements
- Destination. The most common mistake when drawing up a memo for a salary increase is incorrect identification of the addressee. Even if the employee believes that the amount in the payroll is not comparable with the efforts he expended and the results achieved, then he needs to correctly plan the route for considering his request.
- Not within the manager's competence. It would not be entirely correct to demand additional payment from your immediate superior if resolving these issues is not within his competence. But at the same time, you shouldn’t “jump over your head” and write a complaint to the general director. The surest way is to draw the attention of the head of your department to the financial discrepancy and invite him to petition higher management for its review.
- Argumentation. Another example of a mistake when drawing up a memo for a salary increase is incorrect argumentation. Even if the employee finds himself in very difficult life situation and is in dire need of money, this is not a reason to increase his salary. Every more or less experienced leader knows this simple truth.
- Showing sympathy in the form of a salary increase will have a detrimental effect on the productivity of the remaining team members, since it will create an erroneous idea of the company’s priorities. IN in this case It’s better to suggest that the boss give the employee a one-time allowance financial assistance or an interest-free loan. Such an initiative has a greater chance of receiving a positive resolution from management.
The desire of employees to improve their financial situation pushes some of them to write a memo for a salary increase. And if, before sending it, a person objectively approaches the assessment of his own positions and labor achievements, then the likelihood of the desired result increases significantly.
Bar lawyer legal protection. Specializes in handling cases related to labor disputes. Defense in court, preparation of claims and others regulatory documents to regulatory authorities.
It is sometimes easier to defend other people's interests than your own. If you know you deserve more, talk to your manager about a salary increase. We asked business coach Andrey Anuchin to tell us how to benefit from these negotiations - regardless of their outcome.
There is a separate section of HeadHunter dedicated to price negotiations in any area of life. There is no need to be afraid to offer a high price: during the course you will learn how to argue it correctly and not fall into the trap of more experienced interlocutors. For example, people like your boss.
Stage one. Preparing for negotiations and managing the situation
Timing
People are much kinder and more positive towards everyone around them and their requests when they are full. Therefore, it is better to negotiate after lunch.
Prepare and rehearse your first phrase
The first sentence must be precise. It sets the tone for the entire conversation.
“I want a raise” or “I think I deserve better” or “pay me more or I’ll quit” - all options have their pros and cons. Which option will do for your case?
Be sure to rehearse the first phrase at least in dialogue with your wife or husband. You must pronounce it in such a way that they believe you and you believe in it yourself.
Consider the interests of third parties
How does the leader reason? “If I increase now, it might become a habit. If I raise one, everyone will have to raise.” Your compensation may be a political issue for a manager whose decision will affect many people.
The following situation arose on one of the projects. There were simple problems that everyone could solve. And complex tasks that only I could solve.
I negotiated for a salary increase, but got nothing. Later I found out what the manager was afraid of: my colleagues might find out that my remuneration had been increased for the decision simple tasks, and they would also begin to demand a raise.
Therefore, it was necessary to ask for a promotion only for solving difficult problems and convince the manager that no one would know about the promotion.
Define your negotiation situation
For you this is " last Stand"? Or is this “reconnaissance in force”? A way to test strength stone wall or a game of roulette based on the “what comes up” principle?
These negotiations can be approached in different ways. If this is the “last battle,” then we need to act more seriously and decisively.
Determine the best alternative to failed negotiations
Think about what you will do if your manager refuses to raise your salary.
Will you continue to work as before? Or will you write a statement? Or will you tell nasty things about the leader behind his back? Or will you perform another feat to prove that you are worthy of a promotion?
Maybe your manager simply doesn’t have the resources to increase remuneration right now. Will you offer your help to find these resources?
Determine what kind of negotiations you are going to have
At manipulative negotiations Each side uses various tricks and tricks, hoping to deceive the enemy. Usually in such a game the manager is stronger, but the employee can also create a successful situation. For example, when you demand a salary increase at a corporate party: by playing on the same team, you save the boss’s life and hint at reciprocal gratitude on his part.
Power negotiations associated with the struggle for power and the demonstration of power. You can negotiate with power when you pose a threat or have a valuable resource. For example, threaten to leave for competitors if your fee does not double from tomorrow.
If you have power, there is always a temptation to use it. But remember that people don't like to be pushed against the wall. They may refuse you just to retain power. And if they agree, they will harbor a grudge and sooner or later they will remind you of it.
Business meeting come from a partnership relationship between you and the manager. You do one thing, and to achieve best results, ask for yourself necessary conditions work. You evaluate your gains and losses, your boss's gains and losses, and bargain, showing how each party can minimize losses and increase mutual benefits.
Stage two. To battle
During the negotiation process, two problems must be solved sequentially.
The first task is to achieve the very fact of discussing your salary.
The second task is to achieve what you want through the negotiation process.
Make sure there are no distractions for you and your manager.
If the conversation is not very pleasant for the manager, he will want to avoid it under some pretext. Therefore, you should have enough time to discuss all issues.
Non-verbal
If you believe that you need this money and if you want to get it, then don't smile. Good leader - good psychologist. He will determine in about 15 seconds whether it will be easy to refuse you. If you smile, it means you come in peace. So you will leave in peace. And without money.
State the purpose of the negotiations
Your memorized confident phrase is important here.
“I would like to discuss the issue of increasing the fee by 10%.” Or “Can we discuss raising my salary?”
It only takes a few seconds for the manager to understand whether your request is worth taking seriously, so you need to be as natural and confident as possible.
Give reasons why you are applying for a salary increase
Maybe you accomplished a feat? Maybe you have obvious and objective merits?
Tell us about your strengths and achievements. There must be at least three reasons why you deserve the best.
Don't dump everything at once - save your strongest arguments for the end of the negotiations. You don’t think that the manager will immediately agree with you?
Don't ask "Why?"
There are no ideal workers. There will always be reasons to refuse. You came to talk not about why you can’t raise your salary, but about why you need to do it. Therefore, instead of studying the cockroaches in the head of the manager, pursue your line - argue own merits and benefits.
Don't leave without a clear answer
Your task is to achieve a certain reaction. Yes means yes, no means no.
Leaders often use manipulation and avoidance. Remember, most often they have more experience in negotiations than you.
“I don’t decide this”, “let’s wait”, “show what you are capable of” - this is all avoiding the answer and the desire to leave everything as it is.
Stage three. After negotiations
If the negotiations are a success, thank the manager, praise yourself and accept congratulations.
If negotiations fail, now is the time to do what you decided in advance: to implement the best alternative to unsuccessful negotiations.
Remember that negotiation is a game in which you can always make a new move. Therefore, approach this issue strategically. Use any manager's decision to achieve your own goals.
Sometimes a step forward begins with a kick in the ass.
You are 30, 35, or maybe even 40 years old. You work in a company for your meager salary and don’t understand why your successful friends have already upgraded their iPhone 7 to iPhone X. Why is it they, and not you, who travel with their families to Cyprus, the Maldives and the UAE. Why have they already paid off their loans on a Honda Accord, VW Passat or even a Mercedes Benz ML350. You see how your colleagues go to the boss with an impudent face and demand another increase in wages, leave with a smile on their faces and go to the nearest pub to sign up.
Why THEY and not YOU?
It was you who studied best at school and did it to them test papers, helped me pore over my diploma. What about the guy you invited to join your company from the Horns and Hooves private enterprise, and a year later he outpaced you? Why, before the next annual work report, do they ask you to “cook up a list of outstanding achievements,” although their main success was that they did not lose the achievements of their predecessors?
And you are such a modest guy, the smartest, most effective and irreplaceable (damn, why is it that you are always reluctantly allowed to go on vacation for one week, while time as these dunces take two weeks off twice a year, not counting Christmas and May holidays?), so, you’re the best and you don’t get anything...
I'll tell you why this happens.
For almost 10 years now I have been working in large corporations, observing hundreds and even thousands of careers - both successful and failed. Just five years ago I was getting 100 a day from guys like you, conducting up to 10 interviews and evaluating, evaluating, evaluating. I assessed to understand who to hire for the company and who not. Who can achieve something and who cannot.
So below you will see seven simple ways receive a salary increase. Start with the first one, follow all the recommendations and move on to the next one. No need to jump between tips. Keep it in order. So let's get started.
No. 1. Ask!
Do you know why you get so little? Because 95% of bosses don't care that your wife blows your mind every time you get paid.
When she didn't have enough money for a dress. When you took her to relax as a savage, and not to a resort. Because to raise your salary, he needs to talk to his boss, justify why you need to raise your salary, talk about all your successes and achievements (do you think he remembers everything?). It’s much easier to say: Max (your colleague) came up and said that if I don’t raise his salary, he’ll go to a competitor. Or maybe your boss is saving the department budget so that he can ask for a raise for himself later.
What to do: your main task is to plant in your boss’s head the idea that you want to earn more. That you are not satisfied with your level of income. What do you want to know, what should you do to increase your salary?
How to do it: you should prepare a conversation (if you're brave) or a letter (if you're only brave enough to write to your boss once a week).
The main message of your conversation (or letter): what should or can I do to earn 30% more?
Exactly. The boss doesn't care what you've done so far. He is not interested in how much your colleagues earn or how much they pay in the market. He is only interested in what you can offer in the future in exchange for a salary increase.
Secrets: I'll share one secret with you. Any boss values employees who can solve the boss's problems. The boss doesn't like problems more than anything. They always try to blame any problems on their subordinates. If a subordinate fails, it is he who is to blame, not the boss. Therefore, think right away what problems of the boss you are ready to solve in exchange for an increase in salary. This is, of course, about work - don't think you have to be your boss's slave.
How to build your conversation (letter)
- State right away what you want to talk about.
- Explain why you want to earn more (the only thing your boss might care about is your life circumstances, so talk about the mortgage and the rising dollar, that you and your wife are planning to have a third child, or that you now need a car, which you will borrow).
- Ask under what circumstances and conditions you can earn more.
- Offer options for expanding your responsibilities or increasing work efficiency.
- Remember past successes as evidence of your ability to do better.
- Tell me the amount you are aiming for.
- Ask what you need to do to return to this conversation once you have met the conditions on your part.
An example of your dialogue (I’m giving only your phrases, but it’s obvious that your boss’s answers will be in between):
Hello, Ivan Ivanovich. I want to talk to you about my salary. My wife and I are planning a third child, so the issue of my income is very relevant to me now. I would like to discuss with you under what circumstances I can earn more? For example, I can take on more clients or be responsible not only for sales, but also for marketing. Remember how successfully I was able to introduce a new shampoo to the market when all the marketers were busy with new pads? I would like to earn $2,000 per month and am willing to put in the effort. After I have completed all the requirements, how can we return to our conversation?
After the conversation, be sure to write down all your agreements and review them every week.
My experience shows that:
In 50% of cases, just one conversation with a request for an increase is enough to increase your salary.
It really works, especially if you are a really cool and valuable employee.
Bosses are afraid of such conversations. People who say they want to earn more make them afraid of getting fired. And no one wants to look for a new employee to take your place, tinker with him, teach him, adapt him and risk getting a pig in a poke.
#2: Educate yourself!
You know, there is such a phrase: “If you do the same thing tomorrow as you do today, you will have the same thing that you have today.” If you want different results, do something different. And for this - study.
See how it works. Every company has such a concept as a salary range. People in the same positions can receive salaries that differ by 25–75%. That is, you can receive $1,000, and your colleague - $1,500, performing similar functions (we are not taking bonuses into account yet). This happens for many reasons:
- You came when everyone was getting $1,000, and then the market grew, and new employees were already being recruited for $1,500.
- When you were hired, your knowledge and experience were valued at $1,000, while your colleagues were valued at $1,500.
- Your company has a formal or informal system for assessing the professionalism of employees, based on the results of which wages are revised (this kind of thing is increasingly beginning to be implemented in large Western and domestic companies).
- Someone rated your colleague’s level of professionalism higher and initiated a salary increase (your boss, your boss’s boss, the boss of another department, the HR director).
In general, there is a direct relationship between your “coolness” as a specialist and your wages. Accordingly, the cooler you become, the higher your price.
What to do: you don’t need to immediately sign up for all sorts of courses, buy a library of professional literature, or enroll in a mini-MBA (you still have to grow and grow to get a full MBA). First, you need to determine what professional and personal knowledge, abilities, skills and qualities (let’s call them competencies for convenience) are really in demand in your company and people are willing to pay more to “upgrade” them. Once you understand this, all that will be required of you is to look for ways to improve these competencies and improve them.
How to do it: you need allies here. Talk with your boss, with a representative of the HR department, with agency recruiters, colleagues in the market, read magazines relevant to you, go to conferences. Once you identify the eight most in-demand competencies for your position, create a plan for their development and develop them.
Secrets: There are people who call themselves coaches. Like Buddhist monks, they guard the secret of a powerful coaching tool called balance wheel. But I'll tell you about him.
Take a sheet of A4 paper. Draw a circle. Draw it into eight sectors. It will turn out like this:
Each sector is one competency. Now rate each competency on a scale from 1 to 10, where 1 means it is not developed at all, and 10 means it is developed at the maximum level.
After the assessment, next to each competency, put a number that is equal to the difference between 10 and your score. For example, you have the competency “negotiation”, to which you gave 6 points. From 10 you subtract 6 and get 4. Then you work with this number.
Now choose three competencies that are more important than all others. Multiply the points received in them by 3. And three more competencies, which are in second place in importance. There, multiply the points by 2.
You will receive six new numbers. Choose three of them with the maximum score. It is these competencies that you must develop in yourself.
If you have done this exercise, then this is already 50% success. It's just a matter of development.
Do you know why 90% of people don’t engage in self-development? They think it's expensive and they don't have time for it. I want to dispel these two myths.
Myth 1. Self-development is expensive
Complete nonsense.
In our modern world There are already so many different ones where you can, by spending only $100, get valuable information. Do not think or expect that after the first such event you will become a Guru. Don't think the pros know 10 times more than you. All that distinguishes the pros from you is that they went to two or three events, grasped the key idea and began to use it in their work.
Be sure to ask your HRs if they are willing to pay for all or part of your training. Find the most best book on a topic that interests you (ask others for advice, which is better, read reviews) and read it.
Myth 2. It takes a lot of time to learn
And you don’t even have enough to work.
Do you know Stephen Covey's book? Here's what he writes:
Imagine that, while walking through the forest, you see a man furiously cutting down a tree.
- What are you doing? - you ask.
- Don’t you see? - follows the answer. - I'm sawing a tree.
“You look very tired,” you sympathize. - How long have you been sawing?
“More than five hours,” the man answers. - I can barely stand on my feet! Hard work.
“So why don’t you take a break for a few minutes and sharpen your saw?” - you advise. - Things would probably have gone much faster.
- I don’t have time to sharpen the saw! - the man declares. - I'm too busy.
And don’t lie to yourself that you don’t even have 20 minutes a day for... Or that you can’t find three hours a month to watch a webinar. Or that you can’t set aside one day every six months to attend a training. What, really not? Well then, plan your next vacation so that it starts on the day of the training, and you will rest not for seven days, but for six.
#3: Expand!
So, let's imagine that you have already told your boss that you want to earn money more money. You even agreed on the circumstances under which this was possible, and you began to “sharpen the saw.” It's time to take the next step - expand.
My boss once told me:
Responsibility is not something that is given to you. Responsibility is something that you take yourself and do not discuss with anyone.
So, your time has come to expand your area of responsibility.
What to do: look at what you are agreeing on with your boss now. Which of these does he least want to agree on (remember, you wrote him five letters on the topic of agreeing on new terms of work with a client, but he never responded?). Start with the little things. Take responsibility for making decisions.
How to do: First, tell yourself: “Now I am beginning to take responsibility.” As soon as you make up your mind, start taking action. My secrets will help you.
Secrets: I will give you simple diagram increasing your responsibility. Imagine that you have the same situation that repeats every month. Let this be an agreement on working conditions with the client.
Now you write like this:
Dear Gennady Ivanovich, I ask you to agree on the terms of work with the client “Romashka”.
Now let's add a little responsibility:
« Dear Gennady Ivanovich, for this client I want to agree on the following conditions. Do you agree?"(You see, the pronoun “I” appears.)
A little more month later:
« Dear Gennady Ivanovich, I am agreeing on the following conditions for this client. Do you have any objections?"(Here you no longer express a desire, but declare an action.)
Next month:
« Dear Gennady Ivanovich, I agreed on the following conditions for this client. If you have any comments, please let me know so I can make corrections." (Here you have already announced the event, but you leave the boss the right to change something.)
If this stage was successful, then you move on to the final version. If not, and the boss told you: “Who gave you the right to agree on the terms?” - tell him about your readiness to take responsibility for agreeing on the conditions, and he has the right to be informed in the form of your reports.
So, the final stage:
« Dear Gennady Ivanovich, I am sending you a report on the agreed terms for clients, I am ready to discuss them if necessary».
Remember: the more responsibility you take, the greater your value to the company. But I want to warn you: do not fall into the trap where a new responsibility will require more time from you than you are able to devote to it. In this case, get ready to ask for additional resources (the ability to delegate some of the work to other employees, while retaining responsibility for the result).
No. 4. Perform!
Companies are divided into two types:
- in some you work for a salary, and you do not and cannot have any bonuses;
- in others, in addition to the bet, you have the opportunity to receive a bonus.
If you work in a company of the first type, skip this point immediately.
And if you are lucky enough to work in a company where there is even a small chance of a bonus, then you simply must achieve it.
Awards there are different types, here are some of them:
- monthly bonus for meeting targets;
- percentage of sales;
- fee for work done;
- premium for processing;
- Outstanding Achievement Award;
- quarterly bonus;
- bonus based on the results of the assessment for the year.
What to do: so, your task number 1 is to understand what types of bonuses are available in your company. Start by talking to your colleagues and finding out what they know. Then ask your boss or HR person a question.
How to do: listen to what your colleagues say about salaries and bonuses.
In my many years of experience, employees always talk about their salaries and discuss them among themselves. No matter how strict the company's rules are, everyone still knows each other's salaries and incomes. And if you don’t yet know about the income of your colleagues, then everything is ahead of you. Go to the pub with your colleagues and have a heart-to-heart talk. Tell them that you really don’t have enough money and are thinking about how to earn more. How to achieve a prize... Ask their advice - a Pandora's box will open in front of you. If you're lucky, take the boss with you.
Secrets: even if your position does not provide bonuses, your boss always has the opportunity to write a memo to his boss and get a bonus for you. Therefore, do not think that there are no bonuses at all. Think about the circumstances under which you could receive it.
No. 5. Combine!
Sometimes The best way Earning more means finding an opportunity to combine your main job with something else. And here is a list of possible combinations. Even if you don’t find an option for yourself, you will understand in what direction you can and should think.
- Combining two positions in one company. I see this quite often. Of course, no one will pay you two full rates, but you can easily get an additional payment of 30%.
- Combination of two positions for shift workers. If you work in shifts - two after two or three after three and so on, most likely your manager will give you the opportunity to work additional shifts for a colleague who has fallen ill or gone on vacation.
- Network marketing. Although I personally don’t share all the joys network business, however, there are many examples where a person makes good money doing Avon, Amway, Oriflame and other businesses. The only thing is that you must have two success factors: the gift of selling and a huge number of friends and acquaintances whom you are able to convince.
- Conducting training events. If you are a cool pro, then there are probably people who are willing to pay you for training. I know several people who conduct trainings. But usually they do not engage in sales themselves, but cooperate with companies that find them clients. Think about whether there are companies around you that are ready to sell your trainings. There is also a second category of people: they are passionate about some topic, for example, Vedic culture or makeup artistry, and conduct mini-trainings for their friends on this topic.
- The second way to make money from developing other people is to get a coaching certificate. A coach is a person who, using a certain technique, helps other people achieve their goals. Typically, a coach is a professional in a certain area in which he specializes: finance, career, health, and so on. Successful coaches charge between $100 and $200 for their coaching sessions for 60 to 90 minutes.
- Intermediary services. I know people who make money by helping people make purchases in foreign stores. This is especially true for children's things. They collect orders from their friends, place an order in a foreign store and deliver to their city.
- Deposit. This is probably the most obvious way to earn extra money, but it requires effort to start saving 5-10% of your income. You can’t do this without the help of inspiring books. I recommend reading Bodo Schaefer.
- Production of handmade goods. I have friends who bake professional cakes with different figures, there are those who make women’s jewelry, beautiful cards or notepads. Here you have to invest your labor, but if it turns out well, then over time you can earn good money.
- Providing services to others. Manicures and massages will probably be the most popular here. But there are also less popular ones: assistance in choosing a wardrobe, providing quality services in buying a used car (searching for a seller, inspecting cars, checking at a service station, trading). Think about how you could make money.
What to do: It's up to you to choose, there are a great many ways.
How to do: make your list of ideas on how you could make money. Enter ideas into it - from the quite obvious to the craziest. Let your list be as large as possible. Give it a whole week, reviewing it every night and adding a few new lines. And then choose one or two things and start doing them.
Secrets: If you are not sure which of the invented options is better, try to evaluate each of the options according to the following criteria on a scale from 1 to 10, where 10 is the highest score:
- this can, over the next five years, generate income commensurate with my salary;
- this activity gives me pleasure;
- it will utilize my talents.
Evaluate each option according to three criteria, add up the points and choose the option that scored the most points.
No. 6. Grow!
This is one of the most difficult, but also the most effective way earn more.
In my experience, the difference between the lowest paid position and the highest paid position in the average company is 100! This means that if a cleaning lady makes $200 a month, then a CEO makes $20,000 (without bonuses).
Additionally, there are about 13 job levels in the average company. That is, from a cleaner to a director, there are approximately 13 positions.
It is believed that career in humans it can occur on average once every three years.
On average, an employee’s salary increases by 40% upon promotion (usually 20% immediately upon promotion and another 20% after 6–12 months).
Thus, in 20 years professional career even from the lowest position and salary of $200, you can grow to a salary of $2,000 (provided that the increase was 40% every three years, for a total of seven increases).
And if you start with $1,000, then up to $10,000. Not bad, right? But there are people who grow faster than others. For example, if you receive career growth every two years, then the income growth will no longer be 10 times higher, as in the example, but 29 times!
It is considered very easy. In 20 years you will have 10 promotions. Each by 40%. So, you need to calculate 1.4 to the power of 10.
Feel the difference:
| Position growth every * years | Total amount of growth in position (20 divided by the number in the first column) | Income growth over 20 years by * times | Income in 20 years if you start with $500 |
|---|---|---|---|
| 2 | 10 | 29 | 14 500 |
| 3 | 7 | 11 | 5 500 |
| 4 | 5 | 5 | 2 500 |
| 5 | 4 | 4 | 2 000 |
»
Do you now realize the importance of your career growth?
Great, start growing!
What to do: I give step by step instructions.
Step 1. First, determine what you love to do most in life. If you have seriously decided to think about a career for the next 20 years, then you need to choose something worthwhile, because you will devote a very large part of your life to this business.
Step 2. Draw your career ladder for 20 years. We decided that ideally you should have up to 10 promotions. Don't waste your time on trifles, aim for the position of CEO. Believe me, in 20 years any person who is purposefully engaged in his development is capable of becoming general director. This means you need to draw your path from your current position to CEO.
Here is an example of a telecom company with more than 5,000 employees:
- Sales Specialist ↓
- Senior Sales Specialist ↓
- Leading Sales Specialist ↓
- Sales Manager ↓
- Head of Sales Group ↓
- Head of Sales Department ↓
- Head of Sales Department ↓
- Head of Sales Directorate ↓
- Commercial Director ↓
- General Director ★
Step 3. Now forget about yours career ladder and focus solely on the next position (in my example, senior sales specialist). Ask yourself, and then your boss, a question: what do you need to know, do, be able to do in order to be promoted? Focus on this question, finding the answer, and putting action into action in the next two years.
Step 4. Repeat the third step each time after the next increase.
Step 5. Hire yourself a coach who will help you in your growth to insure your success.
How to do: remember, your career growth has several criteria for success:
- Goal setting - you should set a clear goal for yourself every time, for example, to become a senior sales specialist by 01/01/2017.
- Learning - no need to indulge yourself with illusions. Without training, you will not have constant growth. Therefore, plan your training (how exactly - I already wrote above).
- Expanding your responsibility is the only way you will grow. No one will come to you and give you a little more responsibility (and career growth is essentially an increase in responsibility). They will always look to see if you take on a little more responsibility than others or not. You already know how to take on more responsibility.
- High level of performance - you have to work a little more efficiently than others, these are the people who get promoted.
- Good relationship with management - I'm not talking about the need to be a suck-up, no. What we are talking about here is that you must be able to communicate well with your manager and the heads of other departments. Nobody wants to promote people who are unable to build relationships with their colleagues. And your leaders today are your colleagues tomorrow.
Secrets: go to the zoo, look at the wolves. I'm serious! Watch them and you will notice one feature that no one else has. This feature is that wolves are always on the move! Always real. They never stand or sit, they are constantly moving. Hence the saying:
The wolf's legs feed him.
Wolves know that to survive they must move. In winter and summer, in rain and heat... You must become the same wolf.
You must always move. Moving means acting, taking the initiative, developing, communicating a lot with colleagues and other company employees, generating ideas at meetings, speaking publicly. You must always perform more actions than all your colleagues. This is the only way you will get ahead of them.
No. 7. Go away!
So, let’s imagine that you followed all my recommendations from the text above for two or three years and did not get any results.
But let's not lie to ourselves. When I write “done,” it means that you did even more than I wrote.
Even so, here is the test you must pass:
Count how many times you answered “yes”? If you haven't scored 16 points, it's too early for you to think about leaving. You know, people are used to blaming others. If your salary doesn’t grow, it’s always easier to blame your manager. But if you haven’t done all 16 actions to increase it, then the problem is only you.
But if you diligently completed all 16 points and your salary has not changed, run. Run away from these scoundrels!
But, as my friends, career coaches and consultants, like to say, finding a job is all about . So let's talk a little more about this.
What to do: There are several things you should do to find a job. This is a checklist that you must fill out 100% ↓
How to do: job search is a creative process that requires a lot of energy and Have a good mood. I advise you to combine it with something especially pleasant for you. Start going to the gym while looking for a job or going fishing every weekend. Or maybe finally take a driving course. Do you drive? Then off to extreme driving. For English and speed reading courses.
Buy yourself good vitamins and take them every day, improve your diet and sleep. Your life should be like that of a bride before her wedding. You need to get married or marry a good employer, and he must like you.
Secrets: I will share with you the last secret of a careerist, and you will understand why ordinary people work in bad jobs.
I'll start with a small one statistics from the life of a recruiter.
In order to choose for yourself a good place To work, we need to get at least three real proposals.
To receive each of these offers, we will need to go through a minimum of five interviews. So that's 15 interviews for three offers.
Before the interview, the recruiter will conduct a short telephone interview with us. Typically, recruiters call more candidates than they want to invite for an interview. Let's assume that only one out of three calls will result in a real interview for us. This means that for 15 interviews we will need 45 telephone interviews.
But they don’t always call. In reality, only one out of 10 or even 30 resumes sent results in a phone call. Let's take an average of 20 submitted resumes for one call. And for 45 calls such resumes need to be sent as many as 900.
Now let's think: if we want to find a job in three months (90 days), then how many resumes should we send per day? Exactly - 10 resumes per day!
How does it usually happen? One to five resumes per week. Well, even five a week - for 900 resumes you will need 180 weeks...
Now you understand why people usually don’t find normal work? They barely find at least one real job offer (and often they receive this offer after they have greatly lowered their standards after a series of failures).
Conclusion
Submit from 10 to 50 resumes per week.
It doesn’t matter whether there are so many suitable vacancies. Just understand that your goal is to find from all available sites from 10 to 50 vacancies that are most interesting, and send your resume there.
Uninteresting vacancies will give you experience in passing interviews (and in 30% of them you may actually be offered a more interesting position), and interesting ones will give you a potential job offer.
Well, that’s the end of my story about finding a job. This is only a small part of what I would like to convey, and someday I will write a book about careers and job search, but for now I suggest keeping in touch through my
