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Both — use the letter to request a meeting and frame your ask in writing beforehand. Send the letter 2-3 days before the meeting so your manager can review it and come prepared. The actual negotiation happens in the conversation; the letter establishes your position and shows you have thought it through.
For an annual raise: 8-15% for a strong performer, 15-25% if you are significantly below market. For a promotion: 15-30% depending on scope change. Always anchor slightly above your actual target to leave room to negotiate. Use the Salary Benchmark Tool to find the market rate for your role before deciding.
A budget freeze on raises does not mean a freeze on all negotiation. Ask about an accelerated review timeline (e.g. a commitment to revisit in 6 months), a one-time bonus, extra vacation days, a remote work arrangement, or a title change now with a salary adjustment in the next budget cycle. Document whatever is agreed.
Always a specific dollar amount. A percentage can be interpreted different ways and puts the calculation burden on your manager. "I am requesting a salary of $105,000" is clearer and more credible than "a 10% increase." It also signals you have done your research.
Yes, if you genuinely have one. A real competing offer is your strongest leverage. Be matter-of-fact: "I have received an offer for $X from another company, but I would strongly prefer to stay here if we can align on compensation." Never fabricate one — it can be verified and will permanently damage trust.
300-450 words. Long enough to make a compelling, evidence-based case. Short enough that a busy manager reads it in full. One page maximum. Open with your request, support it with 2-3 specific achievements, reference market data if available, close with a clear ask and a proposed meeting time.