There's no budget for that!

One of the most common push-backs that arise in pay rise negotiation is “there is no budget for that”. When it turns up it can feel pretty awful, because it makes us feel like we aren't worth the extra dollars. 

The first step is to deal with how we are feeling. The old flight safety message here is relevant - fit your own oxygen mask before helping others. In a negotiaiton this means check your breathing and use labeling techniques to give you a little distance from your emotional reaction. The aim here is to get some distance from how you are feeling so that you can refocus and get your head back in the here and now of the negotiation.

The second step is to respectfully ignore what you just heard. For the moment, understand that when you hear this particular phrase, it actually means ‘you haven’t convinced me of your value yet’. So the response to this is to pivot the conversation to a conversation about your value. Your value is best explained by outlining how your efforts will positively impact on the organisation. As you are explaining your positive impact, please also add what the consequences of each area of impact is. Tie this to organisational strategy. In particular detail how what you do will drive increased revenue, reduce costs or solve critical problems. 

Take some time to paint a holistic picture of your impact, lay multiple areas of effort and impact to build your case that you are worth the effort. Explaining this fulsomely will position you as a good investment. Then ask your boss how the organisation intends to support the career growth of high performing individuals. 

If you get a second ’No’ response, again, respectfully ignore the response. This time pivot the conversation to the development of the company and how your own personal development aligns with organisational targets. If there are other individuals in the organisation who you have seen promoted for good performance, tell your boss that you have noticed those promotions and you can see that the organisation clearly supports high performing individuals. This comment invites your boss to consider how they should be looking after your interests. You may get questions or further comments at this stage that you can use, to press forward for a final time.

In your final response, be prepared to share specific examples of your achievements and recent performance. Conclude by pointing out that all that tangible proof of existing value demonstrates that your performance will be able to continue to drive growth for the organisation. 

While you may be feeling worried or nervous in your negotiation, it's important to maintain a positive and collaborative tone. Stay constructive and curious. Ask your boss questions, and get them to explain the reasoning behind their answers to you.

The reality is that budgets CAN ALWAYS flex to accommodate unforeseen expenses - but only when senior leaders are convinced of the value!