As a Dubai professional you will all face a point in your career when you would like a pay rise. It could be that you need money to cover costs, or you feel that you are being paid under market rate, or you feel that the full scope of your responsibilities are not being recognised. The reason that you want a pay rise is not really important here, what is important, however, is the approach that you adopt to request a pay rise, because a recent study by George Mason University has shown that the way in which you ask for a pay rise will actually determine how likely you are to receive that pay rise.
The study conducted by George Mason University and Temple University researchers revealed the most effective strategies to negotiating a bigger salary. The study analyzed various approaches to the negotiation process, which methods were the most successful and which ones were more likely to leave both parties satisfied with the outcome.
Effect salary negotiation can earn you an extra 2203740 AED over a life-time
Michelle Marks, associate professor in Mason’s School of Management, and Crystal Harold, assistant professor at Temple University’s Fox School of Business, co-authored the study. A sample of newly hired employees in various industry settings participated in the study which showed that those who chose to negotiate increased their starting salaries by an average of $5,000 (18, 364 AED)“
In today’s economic climate, raising your annual salary is highly uncertain,” Marks said. “However, our study results highlight the significance of effective salary negotiation and why it’s important to be upfront with the issues, enabling both parties to consider creative ways to find win-win solutions.”
According to the study, the compounding effect of successful salary negotiation can be significant. Assuming an average annual pay increase of five percent, an employee whose starting annual salary was $55,000 rather than $50,000 would earn an additional $600,000+ (2203740 AED) over the course of a 40-year career.
And the best salary negotiation approach is to be collaborative
Five negotiation strategies were examined in the study: Accommodating, Avoiding, Collaborating, Competing and Compromising. Individuals who negotiated by using the Collaborating and Competing strategies—utilizing open discussion of issues and perspectives—showed the best results. In contrast, those who used the Avoiding, Accommodating and Compromising approaches were less successful in negotiating larger salaries.
“While more aggressive negotiation strategies succeeded in raising one’s starting salaries, people who used them felt less satisfied with their outcome than did those who used more collaborative approaches,” Marks said. “Those who were overly accommodating ended up feeling the least satisfied and that the process was unfair.”
The study found that men and women were equally likely to negotiate, but that women were less effective at raising their salaries when compared to men. Though women were more likely to have integrative attitudes about negotiation, they were no more inclined to use a particular strategy than men.
Non-salary gains, such as vacation time and perks, were also analyzed. More than half of the people polled who chose to negotiate received at least one additional non-salary gain.
About the author
Kazim Ladimeji is the Director of thecareercafe.co.uk—a resource for start-ups, small business and job seekers. It includes a blog with career and small business advice articles. Kazim is a Chartered Member of the Chartered Institute of Personnel and Development, and has been a practising HR professional for 14 years.
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