Pay Negotiation Tactics : Resignation

articlemania By articlemania, 7th May 2011 | Follow this author | RSS Feed
Posted in Wikinut>Jobs>Pay Negotiation

Depressed? Underpaid and Overworked? Many employees use resignation as a tactic to increase their wage. Is this a good way?

Wage vs Real Income

Companies have the tendency to pay their employees just enough; market standards. Therefore, many times, the onus falls on the employees to initiate a discussion on pay raise. Not all, but many companies do not adjust their pay structure to meet the needs of the employees. Inflation may be soaring and you may be still earning the same amount of money as you used to a year or so ago.

However, your real income has gone way down as a result of the inflation which drives the commodity prices through the roof. To survive, you will have to take matters into your own hands and start discussing the possibility of pay adjustment or raise accordingly.

Pay Raise Tactic : Failed

There are many ways you can go about bringing up the pay raise topic with your boss. You could bring it up during your performance review. You could bring this topic after a successful completion of a project. The possibilities are there and it will depend on how you bring up the situation and how receptive your boss is to the idea. You may be faced with a stern no for an answer.

However, unless you pursue and put your case across well, you may not get anywhere. The basic pay is your right and any pay raise will be treated as a privilege by your boss. To you, this will not be the case and hence you will need to persevere and continue your quest for the pay raise from time to time.

Last Straw - Cost of Opportunity

There would have been times when you would have thought to yourself that enough is enough. You might even have gathered all your things and prepared to leave until you thought about the loss of pay and your family. I would call this a cost of opportunity.

You are paying for the loss of opportunity to look for and gain employment in a company that would pay you a higher wage for the security the current company is providing you in terms of monthly pay you are currently getting. If you want a change to your situation, you have to bear the cost and move on.

However, you can still stay on the current job and get a raise if you use your last trump card; resignation.

Pay Raise Tactic : Ultimate Trump Card

Resignation of an employee who is not immediately replaceable is a big blow to the company. The need to find another potential to take over, train and familiarize with the culture amongst other things will take up much time from the management and they prefer to avoid this at all cost. Therefore, if your job requires moderate to extensive training to be accomplished well, you are in a safe position to ask for a raise. Chances are that you will get it.

The best way to play your resignation card is to ensure that become a valuable asset to your company. Take part and organize company activities, attend trainings and meetings and focus on building better relationships with all your subordinates, team mates as well as your bosses.

If you ask your HR, you would realize that most of the resignations occur because of human factor. If a supervisor or team mate that is well liked and supported leaves, the chances are the most of the team mates would leave as well. The idea is very novel and is a proven when it comes to people who are good with people. As such, if you are a people's person and have a strong support system in place, you will have an upper hand when you hand in your resignation.

Reasons that your resign can also have a huge impact. If you state the reason that you have a better job offer, your employer will be forced to take a closer look at your needs. This is especially true if you are being approached by a competitor.


Resignation is a very big step and can impact many factors of your life. There is no guarantee that you will be given a pay raise and be begged to stay on the job after you have placed the resignation letter with your boss. For all you know, you may be asked to serve the notice period and leave.

Therefore, you need to ensure that you are prepared to leave if your resignation is accepted.

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How To, Money Making, Money Manager, Money Matters, Pay Negotiation, Pay Raise, Quit, Resign, Resignations, Tactics, Threaten

Meet the author

author avatar articlemania
I am a freelance writer and my works are mostly business and career related while I love writing about beauty, skin care, health and wellness as well.

I am also a consultant with Forever Living.

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author avatar Austee
7th May 2011 (#)

Great thoughts!

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author avatar articlemania
8th May 2011 (#)

Thanks Austee

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author avatar Emma
16th Jul 2012 (#)

I really like your post! I am intrigued by using the resignation notice in order to receive a raise. I have resigned from only one job in my life and it was a decision I was making because I was truly ready to leave. However, they were still asking if there was anything they could do to keep me there. Although I was not at all interested in staying, I do wonder if they would have offered me a raise had I asked them. Just as you mentioned at the end, however, one must be ready to leave their employer in case the plan backfires. Great post!

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