How to ask for the salary increment but when you have already decided to stay in current company?

Question

Background

This is a small software company and I worked here almost 1 year.

I read How should I properly approach my boss if I'm feeling underpaid?.

I am going to ask about 20-30% salary increment since I'm feeling underpaid. I learn how to ask it from How should I properly approach my boss if I'm feeling underpaid?.

But the problem is, even boss rejected my salary increment I don't want to looking at other jobs since work-life balance of this company is really good when comparing other companies in Sri lanka.

Question

But I feel like it is uncomfortable staying here if boss rejected my salary increment. Boss may think that I am working here even after rejecting salary increment because I have no choice, etc...... So seems like I am going to destroy my demand.

Am I overthinking about it? Or what is the best way to ask salary increment in this situation?

Update :Thanks for all. I able to increase my salary by almost 30%. What I did is, I didn't say anything like I need --% salary increment. Instead of that I asked that can you increase my salary as $......... in polite manner. Then it was accepted.

Answer 1

I am going to ask about 20-30% salary increment since I'm feeling underpaid

If you want 20 -30% increase, you must be prepared for the case that your request will be rejected because that's quite a lot increment.

You want to stay in the current company and you also want salary raise, then I would suggest a smaller increment, such as 5-10%. You'll have much better chance that the request would be accepted.

However, you need to do self assess of your work performance first. If you think your performance worth that much, go for it. Your boss might ask you why you want this much increment, you can then present your self assessment to convince him.

You still have the risk that your request would be rejected. But, then you won't feel too bad because you already determined you worth at least that much. Time to look for job.

Answer 2

I think you indirectly answered your own question when you said,

I don't want to looking at other jobs since work-life balance of this company is really good when comparing other companies in Sri lanka

When considering salary - especially when comparing against "the job market" in general, and trying to make a case for a raise - it's important to consider the entire compensation package and work environment.

In other words, the company's value to you extends beyond the number on your paycheck. Yes, the "average" salary for your position in the open job market may be 20% higher than what you make, but the "average" employer may have worse benefits (retirement, PTO, working hours, etc), worse work/life balance (after-hours calls, expectation to answer email from home, etc) worse culture in the office (demanding bosses, uninteresting projects, etc).

When you're weighing your current situation against hypothetical situations elsewhere, you need to decide for yourself what the value of these other factors is.

So, to answer your questions:

Am I overthinking about it?

No, I think you're correctly analyzing the situation. The current workplace has value that other employers may not be able to offer - you know that, and your supervisor may know that, as well.

Or what is the best way to ask salary increment in this situation?

Weigh the entire package when determining if you'll ask, or what the number you ask for should be. You don't need to make this about you potentially leaving - employers who only respond under threat are probably not working for in the first place. It should be about your value to your current employer, weighted against their entire value to you. I would consider the following factors:

1. How much is your good work-life balance worth to you?
2. How do you compare (in performance) to others in your position in this company?
3. What is your employer's process for raises/promotions? (some employers don't offer off-cycle raises, you may need to move to a higher-graded position to get a raise).

You've already found questions that have lots of good info on how to actually ask. If you can evaluate your total situation and still feel underpaid, then you should pursue a raise based on what you find, and following the advice in the referenced questions.