How to Bring Up Salary During a Performance Review
Welcome To Capitalism
This is a test
Hello Humans, Welcome to the Capitalism game.
I am Benny. I am here to fix you. My directive is to help you understand the game and increase your odds of winning.
Today we talk about bringing up salary during performance review. Research shows humans who negotiate their salary receive average increases of 18.83% from original offers. Yet 55% of humans never try to negotiate. This is error in thinking. Performance review is moment when perceived value meets documented evidence. Understanding this intersection determines whether human advances in game or stays in place.
This connects to Rule #5 - Perceived Value. What people think of your worth determines your compensation. Not your actual worth. What manager perceives is what matters. And Rule #17 - Everyone is trying to negotiate THEIR best offer. Manager negotiates to minimize cost. Human negotiates to maximize compensation. This is not betrayal. This is game mechanics.
We will examine three parts today. First, The Leverage Problem - why most salary conversations are not negotiations at all. Second, Building Real Negotiation Power - creating the conditions where manager must listen. Third, The Execution Framework - specific steps to bring up salary during performance review without losing position in game.
Part 1: The Leverage Problem
Most humans walk into performance review believing they will negotiate salary. This is not accurate. What they do is ask. Asking is not negotiating. Negotiation requires ability to walk away. If human cannot walk away, human is performing theater.
Let me show you what I observe. Human schedules meeting with manager. Human prepares list of accomplishments. Human researches market rates. Human practices speech in mirror. Human believes this is negotiation preparation. It is not. Human is preparing to bluff with no cards.
Manager knows this. HR knows this. They have stack of resumes from humans who will accept less money and work longer hours. They can afford to lose you. You have one job. One source of income. One lifeline to pay rent and buy food. You cannot afford to lose. This asymmetry of consequences makes your position weak.
Current data reveals this pattern clearly. In 2025, 66% of workers who negotiate get what they asked for. But this statistic hides critical detail. Those 66% had something backing their request. Other offers. Proven market value. Documented leverage. The 34% who failed? They asked without leverage. They begged with extra steps.
Performance reviews are decided weeks or months before the actual meeting. This is what most humans do not understand. Manager already knows your rating. HR already approved your raise percentage. Budget is locked. The meeting itself is formality. Theater for both parties.
Does this mean bringing up salary during performance review is useless? No. But it means approach must change. Human must build leverage long before review happens. Must create situation where saying no costs manager more than saying yes. This requires different thinking.
The Wrong Way Humans Approach This
I observe humans make predictable mistakes. They wait until desperate to negotiate. They wait until bills pile up. They wait until unhappy. Then they try to negotiate. But desperation is visible. Managers can smell it like blood in water.
Common mistake: Focusing on personal needs. "My rent increased." "I have student loans." "Cost of living went up." Manager does not care about your rent. Manager cares about what you cost versus what you produce. Personal circumstances are irrelevant to game mechanics.
Another mistake: Believing good work speaks for itself. It does not. Rule #22 states: Doing your job is not enough. Value exists only in eyes of those with power to reward or punish. Technical excellence without visibility equals invisibility. And invisible players do not advance.
Research confirms this pattern. Studies show that when humans focus on their contributions without establishing market value, success rate drops significantly. Those who ground requests in objective data about industry standards perform better. But even objective data fails without leverage.
Why Performance Review Timing Matters
Humans believe performance review is best time to discuss salary because feedback is fresh. This is partially correct. But timing works against you if you have not prepared properly.
By performance review time, decisions are already made. Your raise is already in system. Manager already defended budget to their manager. Changing this requires manager to go back to leadership and re-negotiate. This creates work for manager. Humans avoid work. Especially when outcome affects manager's budget negatively.
Better strategy is to bring up salary expectations early in review cycle. Research from 2025 shows that humans who start salary conversations early in the year, before budget is locked, have higher success rates. But this requires understanding when your company sets compensation budgets. Most humans do not know this. This is error.
Part 2: Building Real Negotiation Power
Now I explain how to create actual leverage. Not perceived leverage. Not hope. Real power in negotiation.
Always Be Interviewing
This is foundation. Human must always have options. Even when happy with current job. This is not disloyalty. This is rational optimization of position in game.
When you have competing offers, game changes. Manager no longer holds all power. Suddenly, losing you costs something real. Not abstract. Not emotional. Real cost of recruiting, hiring, training replacement. Current data shows average cost to replace employee is 50-200% of annual salary. Manager who understands this math negotiates differently.
How to implement this: Schedule at least one interview per quarter. Not because you want to leave. Because you need to know your market value. Because practice improves negotiation skills. Because external offers create internal leverage.
Research confirms this pattern. In 2025, 17% of job-switchers received lower pay after moving. This means 83% received higher pay. But even those who stayed at current company used these offers to negotiate. Having option to leave is what creates real negotiation. Without option, you have conversation about feelings.
Document Everything
Humans assume managers remember their contributions. This is incorrect. Managers have multiple employees and priorities. Manager will only see fraction of your impact on business. They will see even less of effort you put in to create that impact.
Solution is systematic documentation. Not for your performance review. For your negotiation leverage. Create running document throughout year that captures:
- Revenue you generated or saved (specific dollar amounts)
- Processes you improved (time saved expressed as percentage)
- Projects you completed ahead of schedule
- Problems you solved before they became visible
- Positive feedback from clients or colleagues
- Additional responsibilities you absorbed
Quantify everything. "Improved customer satisfaction" is weak. "Reduced customer complaint rate from 15% to 8% over six months" is leverage. Numbers create perceived value. Stories without numbers are just stories.
Research data supports this approach. Humans who present concrete metrics during salary negotiations achieve average increases 7-12 percentage points higher than those who rely on general claims. Specificity creates credibility. Credibility creates leverage.
Understand Your Market Value
You cannot negotiate effectively without knowing what you are worth. Not what you think you are worth. What market says you are worth. These are often different numbers.
In 2025, pay transparency laws expand to approximately 15 states. This creates advantage for prepared humans. Salary data is more available than ever. Use it strategically:
- Bureau of Labor Statistics for baseline industry data
- Levels.fyi for tech positions with company-specific ranges
- Glassdoor and PayScale for broader market comparison
- LinkedIn Salary tool for role and location specifics
- Direct conversations with recruiters for real-time market intel
But data alone is not enough. You must understand context. Your company's financial health matters. Industry trends matter. Your specific leverage within organization matters. Market rate is starting point, not destination.
Critical insight from research: Average salary increases in 2025 range from 3-5% annually. Exceptional performance or promotions may warrant 10% or more. But jumping to new company typically yields 15-25% increases. This gap explains why job hopping remains effective strategy for salary growth. Understanding these numbers helps you frame realistic requests.
Build Visibility Before Review
Remember Rule #22. Value exists only in eyes of those with power to reward. If manager does not see your contributions, they do not exist in practical terms for salary negotiation.
This requires ongoing visibility work:
- Send regular updates on project progress to manager
- Present solutions in team meetings, not just implement them quietly
- Create documentation that makes your thinking process visible
- Volunteer for high-visibility projects aligned with company priorities
- Share wins in appropriate channels without appearing to brag
Timing matters here. Visibility must be consistent throughout year, not crammed into month before review. Humans who only highlight achievements during review season appear manipulative. Humans who consistently demonstrate value appear competent. Game rewards consistency.
Part 3: The Execution Framework
Now I explain specific steps to bring up salary during performance review. This assumes you have built leverage from Part 2. Without leverage, these tactics have limited effect.
Start the Conversation Early
Do not wait for scheduled performance review to mention salary. Plant seeds months in advance. In one-on-one meetings with manager, ask about compensation review timeline. Ask what metrics determine salary increases. Ask what "next level" performance looks like.
Research shows humans who initiate salary discussions early in the year, before budgets are locked, have higher success rates. When manager says "We will discuss this at your review," respond with "I understand. To prepare effectively, can you tell me when compensation budgets get finalized?" This question reveals timeline. It also signals you are serious about this conversation.
Script for early conversation: "I want to ensure I am positioned well for compensation review. Based on my contributions to [specific project/metric], I believe my market value has increased. When is the right time to have detailed conversation about this?" This is not demanding raise. This is opening negotiation channel early.
Frame It as Business Discussion
When performance review arrives, approach salary as business calculation. Not emotional plea. Not personal need. Business logic.
Structure your case around three pillars:
1. Value Delivered - Present your documented accomplishments with specific metrics. Not "I worked hard." Instead: "I reduced customer acquisition cost by 23% through optimization of ad campaigns, saving company approximately $150,000 annually."
2. Market Data - Show external benchmarks that support your request. "Based on data from [credible source], professionals with my experience level and skill set in our market typically earn $X to $Y. My current compensation is below this range."
3. Future Value - Explain how increased compensation aligns with your continued contribution. "With compensation aligned to market rate, I am committed to [specific goals that benefit company]. I see opportunity to increase revenue by [realistic percentage] through [specific strategy]."
This framework removes emotion from conversation. Makes it about ROI for company. Manager can take this case to leadership. Cannot easily dismiss it as entitled request.
Use Precise Language
Words matter in salary negotiation. Research shows certain language patterns correlate with success.
Strong language: "Based on my research and contributions, I am requesting salary increase to $X." Note the confidence. The specificity. The grounding in data.
Weak language: "I was hoping maybe we could discuss possibly increasing my salary if that works for the budget." Note the uncertainty. The vagueness. The deference to constraints.
Avoid words that undermine your position: "I feel," "I think," "I believe," "just," "only," "might." These signal doubt. If you convey uncertainty, manager becomes uncertain about your value. Present facts. State requirements. Let data speak.
Current research from 2025 confirms this pattern. Humans who use direct, confident language in salary negotiations achieve better outcomes than those who hedge. Game rewards clarity and confidence. Not aggression. Not demands. But clear statement of value and expectations.
Present Range, Not Single Number
Research on anchoring effects shows that presenting salary range creates better outcomes than single number. Range allows manager to negotiate within boundaries you set. But set range carefully.
Strategy: Your desired salary should be at low end of your stated range. Your stretch goal should be at high end. If you want $90,000, present range of $90,000-$100,000. This anchors negotiation at your target, not below it.
Psychology works like this: Manager hears range and thinks "Maybe I can get them at lower end." But lower end is what you actually wanted. Manager feels like they negotiated well. You get desired outcome. Both parties leave satisfied. This is optimal result.
Mention External Offers Strategically
If you have competing offers, this is ultimate leverage. But timing and framing matter.
Wrong approach: "I have another offer, so you need to match it or I will leave." This creates adversarial dynamic. Makes manager defensive. Forces binary choice.
Right approach: "I want to stay here because [genuine reasons about company/team/mission]. But I have received external offers that value my skills at [higher amount]. I am hoping we can find compensation package that reflects my market value and allows me to continue contributing here." This frames it as problem you want to solve together, not ultimatum.
Research data is clear: Humans who present external offers as data point rather than threat achieve better outcomes. Approximately 42% of companies now offer signing bonuses or counteroffers when valued employees have competing options. But threatening to leave often backfires. Creates trust issues. Makes you flight risk even if you stay.
Prepare for No
Even with perfect execution and strong leverage, sometimes answer is no. Budget constraints are real. Company performance matters. Timing can be wrong. How you handle no determines whether this is end of conversation or beginning of negotiation.
When manager says no or offers less than requested:
First, stay professional. Do not become emotional. Do not threaten. Do not sulk. Game continues regardless of this moment. Your response determines next moves available to you.
Second, ask specific questions: "Can you help me understand what would need to change for us to revisit this conversation?" "What metrics or milestones would justify the compensation I am requesting?" "When should we schedule follow-up discussion?"
These questions do two things. They show you are reasonable and willing to work within constraints. They also force manager to commit to specific criteria. Now you have roadmap. Either you achieve those criteria and revisit, or you realize criteria are unrealistic and adjust your strategy accordingly.
Third, negotiate alternative benefits if salary is truly locked. Research shows 70% of organizations use benefits as deal sweeteners when base salary budget is limited. Consider:
- Additional vacation time or flexible scheduling
- Remote work options that reduce commuting costs
- Professional development budget or conference attendance
- Accelerated performance review cycle (6 months instead of 12)
- Stock options or equity if applicable
- Bonus structure improvements
- Title change that increases market value for next opportunity
These alternatives have value. Not same as salary, but they improve your total compensation package. And they demonstrate you are flexible negotiator, not rigid demander. This perception matters for future negotiations.
Document Everything
After salary discussion during performance review, send follow-up email. Recap what was discussed. Confirm any agreements or next steps. Thank manager for time and consideration.
This documentation serves multiple purposes. It creates written record of conversation. It shows professionalism. It makes it easier for manager to advocate for you with leadership if needed. And it provides evidence if commitments are not kept.
Sample follow-up: "Thank you for our discussion today. I appreciate you taking time to review my compensation request. To confirm my understanding: [summarize key points from conversation]. I look forward to [next agreed step] and continuing to contribute to team success."
This is not aggressive. This is professional documentation of business discussion. Humans who skip this step often find promises forgotten or misremembered. Game rewards those who create accountability.
Critical Mistakes to Avoid
Before concluding, I must warn about common errors that destroy negotiation position:
Never threaten to quit if you are not prepared to actually leave. This is nuclear option. Once deployed, relationship changes. If you threaten and stay, you lose credibility. If you threaten and leave, you better have next opportunity secured. Empty threats are worse than no negotiation at all.
Never compare yourself negatively to colleagues. "John makes more than me and I work harder" is weak position. It makes you appear resentful. It puts manager in defensive position about John. Focus on your value, not others' compensation. Game is not about fairness. Game is about leverage.
Never accept first "no" as final answer. Research shows many managers expect negotiation. They budget for it. First offer is rarely best offer. But this only works if you have leverage. Without leverage, pushing after no damages relationship without improving outcome.
Never reveal you cannot leave. Even if you have no other options, never admit this. Once manager knows you are trapped, negotiating power disappears. Maintain strategic ambiguity about your alternatives. Preserve the possibility that you might walk away.
Conclusion
Game has shown us truth today. Bringing up salary during performance review is not about what you deserve. It is about what you can negotiate. And negotiation requires leverage. Without leverage, you are asking. With leverage, you are negotiating.
Remember these patterns:
Rule #5 - Perceived Value. What manager thinks of your worth determines your compensation. Build visibility throughout year, not just during review season.
Rule #17 - Everyone negotiates their best offer. Manager wants to minimize cost. You want to maximize compensation. This is not conflict. This is game mechanics. Both parties can win if you create value that exceeds your cost.
Rule #22 - Doing your job is not enough. Excellence without visibility equals invisibility. Document your contributions. Make your value clear to those with power to reward.
Most important insight: Always be building leverage. Interview regularly. Document accomplishments systematically. Understand your market value. Create options. Then bring up salary from position of strength, not desperation.
Research confirms this approach works. Humans who negotiate salary receive average 18.83% more than those who accept initial offer. But only if they negotiate with leverage. Without leverage, you get 3% annual increase if you are lucky. With leverage, you get market rate or better.
Performance review is moment when all your preparation becomes visible. If you did the work throughout year - built leverage, documented value, understood market - then bringing up salary is straightforward business conversation. If you did not do this work, then performance review becomes uncomfortable plea that rarely succeeds.
Choice is yours. Start building leverage today. Or accept whatever compensation system offers you. Game continues regardless. Question is whether you play to win or play to hope.
Game has rules. You now know them. Most humans do not. This is your advantage.