DEMANDING a salary increase can be risky — unless you happen to be a star of a hugely popular sitcom such as Friends. When the show was launched in 1994, each of the actors was signed up for five years at about €17,300 per episode, according to Time magazine. Over the years, the friends banded together to negotiate increases, and by the last series each was getting €770,000 a show.

They had plenty of leverage, given that syndication rights were being sold for about €3m per series in countries around the world. While threatening to strike, or even leave, worked well for the glamorous thespians, it may not be a good idea for everybody, according to Michael McDonnell, the director of the Chartered Institute of Personnel and Development.

Threatening to walk out can lead your boss to question your loyalty, says McDonnell, who advises adopting a strategic approach, drawing up a plan of action and getting the timing right. “Do your homework first and know the marketplace,” he said. “Make your request when you have a list of achievements to back you up, such as after the completion of a big project or when you are celebrating an anniversary within the company.”

After you have quantified what you have been doing for a certain period of time, it is important to benchmark your salary within the organisation and the industry, according to McDonnell. “Work out how much you earned when you joined the company and see if the gap between you and another person has narrowed in any way,” he said.

Finding out what other people in your position earn outside of the company will also give you an indication of what you could be earning. This can be done by talking to a recruitment consultant or by looking at various salary surveys in newspapers or on the internet.

Colette Clail, who runs the Career Coach, agrees that it is better to ask for a pay increase when things are buoyant. “Your boss may be much more approachable when the company has just released good end-of-year figures and when things are looking up,” she said.

Even then it can be hard to get more money, so it is important to focus on what you will bring to the organisation in the future. Highlighting past successes can help your argument. “Ask for an increase after you have celebrated an achievement because you will have demonstrated your worth within the company,” she said.

It is better to present your case face-to-face rather than in a letter. “Salary negotiations can be difficult, and many people handle them poorly, causing frustration and low self-esteem (if rebuffed),” she said.

So decide when the time is right and then ask your boss for a review meeting to discuss your responsibilities and remuneration. Make sure not to approach him on a day when he is run off his feet, as neither of you will be relaxed.

“In the meeting, be confident and approach the subject positively and constructively,” said Clail. “Look for opportunities to make your boss’s task in dealing with your approach as easy as possible, especially given that resolving salary requests are difficult for your boss too.”

Once you have his or her full attention, remember to be reasonable, and don’t make ridiculous demands. Follow the rules set out by the Chinese philosopher Sun Tzu in The Art of War, who said if you want to go into a battle unafraid, you should: “Know yourself. Know the terrain. Know the enemy.” If you are asking for an increase of 25%, it is unlikely you are following those rules.

Rowan Manahan, the managing director of Fortifyservices, the career management and outplacement company, agrees that it is a mistake to be arrogant. “Most people have a disproportionate sense of their own importance within an organisation and they think the company would go under without them,” he said. “That is not necessarily the case. Only a minute percentage of people are indispensable, and you are not likely to be one of them.”

The key to getting what you want is to be aware of the company’s position and your own, according to Clail. Rather than saying, “I need a 20% increase”, try saying, “I have increased sales by 20%”, before stating what increased remuneration you would like. This should provide a good platform for sensible discussions and will enable you to present a stronger case.

It is a good idea to run through what you are going to say before attending the meeting, says Neil Pope, the managing director of Merlin Associates, an executive recruitment firm. This way you can ensure that you have a strong argument and that you will be able to present it logically.

“Once you have discussed your contribution, it is very difficult for your boss to turn around and say that you are not worth more,” said Pope. “That is especially so if your job specification has changed since your contract was signed.”

The good news is that up to two-thirds of those who ask for a pay rise get one, says Manahan, although many people just sit there and fume because they have not been offered an increase. “If you want it, ask for it,” said Manahan.

If the cash is not there, you need to be prepared to be open to other types of offers, says Tony Donohoe, the head of research and information services at Ibec, the employers’ lobby group. “There are always other options,” he said. “Employees should be aware that employers are becoming a lot more flexible when it comes to negotiating packages and they are now offering ‘cafeteria-style’ benefits which closely match the employee’s circumstances.”

These can include stock options, profit sharing and performance- related bonuses. According to Ibec’s 2004 management survey, 45% of companies have performance- related pay schemes. When a pay rise is not available, the individual can create a package suitable for their needs. This can include overtime, time off in lieu, car and travel allowances or other fringe benefits such as childcare vouchers or additional leave.

So start polishing those negotiation skills.

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