It's also good to keep in mind that each job has a unique maturity curve, the trajectory of salary increases that you can expect for meeting performance goals, says Katie Bardaro, analytics manager at PayScale, an online compensation data company based in Seattle. The maturity curve will be flatter if most of your value to the employer is due to your education or pre-employment training; it will be steeper if you gain valuable experience every year.
For instance, a starting pharmacist can expect to earn about $100,000 but not see much growth over the course of a career, with ending compensation only about $106,000. By contrast, a software developer or lawyer will become more valuable to the employer every year because of on-the-job learning, and can expect strong raises, Bardaro says.
Be sure to understand the financial position of your employer and the overall industry before you begin a salary discussion. You'll appear out of touch if you ask for a raise when the company is in distress.
"If you're in manufacturing, construction, retail, real estate, things are not looking good for you…." Bardaro says. "The industries that see huge increases in pay are energy, oil exploration, engineering, scientific research and biotechnology."
If your manager doesn't have a budget for the raise you're seeking, consider asking for benefits such as extra vacation time, a bigger health care subsidy, educational or professional development opportunities, a gym membership, or a parking spot in the garage. Or, explore the potential for bonuses or profit sharing.
That's what Jason Jepson, 37, a business development executive in Austin, Texas, negotiated at a previous job in which he targeted corporate clients who paid retainers of $20,000 to $30,000 a month. Although his employer had never previously shared revenue from new clients, Jepson successfully argued that in just three months with a new client, his annual salary would be covered.
"Go in looking at the complete business, see how you fit in and your overall impact. Negotiate from there and you will win every time," Jepson says. "Everyone works a lot harder when they're working for more money."