The Short Answer

Understanding Salary Increment

Salary increment is nothing but a result of a negotiation.

What Salary Negotiation Is Not Based On

And negotiation is predominantly, not based on the grounds of what the market is paying, or what is the worth of the skill that an individual is bringing on the table.

Neither is the salary increment a result of what kind of budget the organisation has.

What Salary Negotiation Is Really About

The negotiation is more in terms of what kind of a value and as an individual, the organisation is getting from the person, and what kind of investment the organisation is willing to make to continue to get that kind of a value.

Value and Investment, Not Market and Ability to Pay

So it’s more a negotiation of the value and investment, not in terms of the market, not in terms of the ability to pay.

More in terms of what is the value and I as an individual am putting in the organisation.

Or if we think from an organisation’s perspective, what is the value add the organisation is getting from the individual and how much as an organisation are we willing to put in terms of resources to get that kind of value.

it’s more a negotiation of the value and investment, not in terms of the market, not in terms of the ability to pay

The Practical Takeaway

So, need a salary increment, understand the value you are providing the organisation and then leverage that.

understand the value you are providing the organisation and then leverage that