1. The Right Timing
The right time for a salary discussion should not be limited to the annual performance review. When an employee consistently delivers outstanding performance or takes on additional responsibilities, this is a suitable occasion to address the topic of compensation. Maintaining an ongoing dialogue promotes open communication and strengthens employee retention – especially important in the war for talent.
2. Strategic Preparation
Preparing for a salary discussion is essential for both parties. The relevant manager should speak with colleagues in advance and gather the employee’s performance metrics. In addition, objective criteria should be defined to assess the employee’s salary, and this framework should be clearly presented during the discussion. The employee, in turn, should be able to articulate their achievements, successes, and added responsibilities, be aware of their market value, and come with a concrete idea of the desired new salary.
3. Open and Transparent Communication
Open and transparent dialogue is important throughout the company, but especially during salary discussions. Both parties should clearly state their expectations and demands—not just regarding salary increases, but also development opportunities and long-term perspectives. Arguments should be based on facts rather than emotions.
Using Salary Discussions as an Opportunity
Salary discussions are more than just negotiations about money. When conducted on equal footing, they offer a unique opportunity to strengthen the bond between company and employee. Through respectful exchange of expectations, goals, and achievements, salary talks foster a culture of transparent communication. Fair compensation opens the door to individual growth and career development, creating a win-win situation that forms the basis of long-term collaboration. That’s why salary discussions should not be seen as mere formalities, but as opportunities to shape the future and reinforce mutual appreciation.
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