By Michelle Tay

SO YOU think you need a bigger pay cheque. With rising prices of fuel and food, and the Prime Minister's warning of a 'bumpy year ahead', who can blame you?

Yet asking for more money is, for many, about as appealing as negotiating a mine-ridden maze.

It seems straightforward: Approach the boss, tell him how the company is failing you and how much happier you would be if you were better compensated.

The boss might agree and set the lumbering bureaucratic machinery in motion to give you what you want. Or he might blow up and send you packing.

Human resource experts and company heads told The Straits Times that chancing your arm over pay is perfectly acceptable in today's work environment.

But they stress that you must first be sure that you have indeed made a 'significant contribution' and that the firm can actually afford your raise.

Here are seven expert tips to get you ready for the all-important meeting.

Do your homework

Just as you would not buy stock without reading up on the firm. do not go into the meeting blind.

Research the market rate for the skills and experience you have before approaching a salary negotiation, said Mr Tim Hird, managing director of recruiting firm Robert Half Singapore.

Do this by approaching recruitment professionals who know market trends, looking at salary guides firms sometimes produce or checking job ads which sometimes include salary pointers.

What to ask for

Both monetary and non-monetary compensation are important negotiable areas, say experts.

While an immediate pay rise or bonus is clearly desirable, you should consider benefits such as gym memberships, parking privileges, flexible working hours, more leave time as well as incentives such as stock options.

OCBC Bank, for instance, has an employee share purchase plan to encourage staff to own the bank's stock - so they feel like they have a stake in the company.

'It forges a stronger sense of alignment between employees... and helps the bank retain talent,' said Ms Jacinta Low, OCBC's head of planning and employee communications.

How to ask: good and bad reasons

Experts say you ought to highlight your contribution to the organisation - but do not appear demanding or overly aggressive.

If you have taken on additional tasks or done work outside of your job scope, emphasise this to show your flexibility and willingness to contribute more than what is in your job description.

'If you are in a sales role, you can highlight the amount of revenue you have brought to the company. If you are in a non-sales role, you can highlight the amount of savings you have brought through the work you have done,' said Mr Mark Ellwood, director of recruitment firm Robert Walters Singapore.

But do not go to your boss and say: 'I've been offered this much by another company - will you match it? If not, I'm off.' Or: 'My friend has been offered such a package; I expect the same.'

Never mention personal financial concerns. Mr Hird said: 'That personal expenses have gone up, or you have multiple student loans to pay off or you need to earn more to pay for that new car, are all irrelevant. Compensation is tied directly to the employee's value to the firm.'

Appropriate percentage to ask

First, be aware of what the market is paying for your type of job in your industry and how your company is performing.

While there is no set formula for how much to ask, try phrasing the discussion along the lines of you being a little disappointed with your increment or you feel you should earn more because you have done well.

'Don't just say 'I expect an x per cent increase' with no logical argument, as it will look like you are plucking figures from the air,' said Mr Ellwood.

Trump cards one can play

Businesses are heavily dependent on their top people in today's talent-short market and this is a driving factor for increasing salaries and bonuses.

To convey why your mix of skills and experience is worth the raise, it is important to focus on common ground and achievable goals. Enter the discussion armed with a range of options and figure out what elements you are willing to compromise on.

More organisations are placing greater emphasis on the variable component of one's salary, so there is an incentive to do a good job, said Mr Ellwood.

Timing is key

Be aware of your firm's performance. If it is struggling or has just laid off staff, there is little chance of a pay rise for you. Some firms evaluate pay only during performance or appraisal reviews, or before finalising the annual budget.

Avoid times when your boss is under deadline pressure, stressed or struggling to play catch-up after a two-week absence.

But Sincere Watch managing director Tay Liam Wee said: 'As long as there is good justification, any time is a good time to ask. Because if he is worth his salt, it is always in the interest of the company to consider (his requests).'

Be realistic

At all times, be aware of what the market is paying for your type of job in your industry, as well as how the market and your company are performing. Do not be arrogant, stay calm and do not commit the ultimate faux pas: thinking you are indispensable and waving a letter in the air.

Said Mr Hird: 'Do it only if you mean it. Bluffing as a negotiation technique is rarely effective and can easily backfire.'

This article was first published in The Straits Times on August 18, 2008.