Is Getting a Raise Really Just About Negotiation Skills?
Today, I want to talk about something almost every employee cares about "getting a raise."
Most people hope for one. That’s totally normal. But the real question isn't whether you want a raise. It's "How you should approach it and how to make sure the result actually makes you happy."I'll share my own experience of how I grew my annual income by more than ten times, where you should really focus if you want to make more money, and finally, how to shift your mindset about raises in a fundamental way.
The Real Logic Behind a Raise
Let's be very direct.
When people talk about raises, they usually jump straight into negotiation tactics...scripts, timing, attitude, emotional intelligence. Honestly?
Those are not the most important things.
The real key is understanding this one question:
From your company's point of view, is your raise a cost... or an investment?
If your boss sees a raise as nothing more than extra cost, with no clear return, why would they approve it?
In that situation, even if:
- You're underpaid compared to the markete
- You have strong, measurable performance
- You pick the "right" time
- You stay positive and professional
...the odds of getting a raise are still very low.
And if you’re not even on the layoff list, honestly, you’re already lucky.
Also, remember this:
Raises work very differently in the private sector than in the public sector.
In private companies, if the business isn't growing or making money, raises usually don't happen. Even if inflation is high, if employees don't have better options, why would the company voluntarily raise its costs?
At the core, getting a raise depends on three things:
- The company's overall profitability
- Your contribution to the business
- Supply and demand for your skills in the job market
If you ignore these and rely only on negotiation skill, you're likely wasting your time or even hurting your chances.
1. Company Profitability Sets Your Raise Ceiling
Your raise is always limited by how much money the company can make.
For example, even if a company's revenue grows 20%, the total salary budget might only grow 2~4%. And that extra budget usually goes to a small group of key people.
For most employees, that means a raise of maybe 1% or nothing at all.
Why? Because salary is a fixed cost. Bonuses are flexible.
So how do you break through that ceiling?
The simplest answer is " Change jobs."
If the company's growth is limited or leadership is weak, pushing for a raise just creates awkwardness. Moving to a faster growing company raises your ceiling immediately.
In reality, job changes often bring 20% or more in pay increases. Ask yourself: "How many years would it take to get a 20% raise where you are now?"
From my own experience, every time I changed jobs, my pay jumped at least 30%.
2. How Companies Actually Measure Your "Value"
The second key factor is your contribution to the business.
This doesn't mean you have to be in sales. What matters is whether your role:
- Is hard to replace？
- Has a high replacement cost？
- Would seriously hurt operations if you were gone？
......then you are considered valuable to the company.
From a boss's point of view, employees are like parts in a machine. The question is: "Does the machine stop working if this part is missing?"
If your position:
- Is easy to replace
- Has a simple handover
- Has little impact on operations
...then your raise potential is limited.
That's why I often suggest people without strong technical backgrounds consider business-facing roles. These roles make value more visible and you also notice business problems earlier, which helps you prepare for your next move.
3. The Job Market Controls Your Negotiation Power
The third factor is simple: supply and demand.
If your role has low demand and lots of candidates, even great negotiation skills won't help much..
But if your skills are in high demand and hard to replace, you have leverage ( even if your current pay started low ).
Common Myths About Raises
Myth 1: Market data alone is enough
The best way to know your value is to interview elsewhere. It gives you real numbers and confidence.
Myth 2: Performance numbers are everything
If your KPIs aren't clearly tied to profit, great numbers don't mean much.
Myth 3: Timing is about performance reviews
The best time to talk about pay is when your workload is increasing.
More responsibility = more value.
Myth 4: Communication doesn't matter
How you explain your value matters more than the report itself. We'll have a chance to talk more about DISC based communication techniques later.
Myth 5: Don't be the first one to say your expected salary number
Instead of playing games, be clear about your expectation and ask what the company needs from you to justify it. Aim for win-win, not win-lose.
Special Reminder: Never Use Resignation as a Threat
Always remember " once you mention quitting, you must be ready to do it."
No one likes being threatened, and no boss wants to keep someone who looks disloyal.
The Best Way to Truly Increase Your Income
Honestly, none of these tactics are the most powerful way to make more money.
The best approach is this " Raise your income yourself and don't wait for permission. "
Three ways to do that:
- Improve professional skills
- Enhance language skills
- Build financial literacy and passive income
Skills can increase your active income, but your working time is limited. As you get older, the return on investing in new skills usually goes down, which is why financial literacy becomes more and more important.
Two simple investing rules:
- Never invest with borrowed money.
- Focus on assets and cash flow, not price swings.
If you're only chasing price differences, you’re basically gambling and the odds aren't in your favor.
Final Thought
I hope everyone moves steadily toward real financial freedom, so you can work with peace of mind and live with less stress.
See you next time.
