It’s common for hard workers to request raises. Raises are an expected, recurring activity among US employees and employers. With rising costs of living, increased demand for good workers, and the inherent desire to be compensated appropriately for one’s growing expertise, asking for a raise (and expecting one) is a shared experience of all employees across all job sectors. But how do you initiate a raise conversation and is there really a ‘best way’ to ask for a raise?
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Why do you want a raise?
Whoa, slow down a bit.
It doesn’t take a genius to know everyone wants a raise.
Money is a powerful tool that can amplify who we are and what we believe in.
Money equates to opportunities and options.
But why do you really want a raise?
Is it because you feel undervalued at your current pay for the type of work you do or experience you have?
Is it because others are making more than you while they do similar work with similar expertise and efficiency?
Is it because you want more flexibility financially to experience things or prepare for the future?
Before asking for a raise, it’s critical to first identify the why behind the big ask.
I’ll tell you a secret.
Any raise request that is tied to anything other than proper valuation of your skills and abilities is a non-starter.
So just clear out all those internal conversations about just wanting more without having done more and you’ll be in a far greater position for a raise.
How much should you ask for?
Once you’ve gotten to the point of being convicted and believing a raise is justified, that you have done something that is worthy of a pay increase, the next logical question is how much raise is appropriate.
Employees often hinder themselves by undervaluing and overvaluing their contributions to the success of their organization.
Let me explain but also remember this: Shoot for the moon and if you miss, you’ll land among the stars.
Undervaluing Our Contribution to Company Success
It’s easy to feel like we are just a little cog in a big system that causes the company to grind out profits.
And make no mistake, it is the purpose and function of a company to create profits.
With no profit, there is no sustainable company.
Now, not every person in a company is contributing to the success of that company.
Bad actors, mooches, and destructive employees abound in every industry.
But I don’t think you’re one of them.
I think you’re genuinely trying to do a good job, or else you wouldn’t be seeking knowledge in how to have productive, helpful raise conversations.
Genuine people who want to help their company are critical to company success.
It’s clear then you are not unimportant.
Your role, your work, and your contribution is significant and deserves appropriate pay that satisfies your convictions.
Key word is appropriate.
As a good employee, you recognize that inappropriate pay, either too low or too high, could be detrimental to you and the organization.
Poor pay is encouraging you to leave, which can put the company in a bind.
Outlandish pay could bankrupt the company, especially if similar pay was provided to all employees at your level of performance and expertise.
Appropriate pay then is what a good employee should be seeking.
Overvaluing our Contribution to Company Success
The flip side of course is feeling like we deserve far more than what we really do.
It’s helpful here to consider the monetary benefit we have provided our company in the past, or the monetary benefit we provide daily.
If we look back on our job history, how much money have we brought into the storehouse of the company?
Were we directly responsible for a new or re-committed contract (big or small)?
Did we find or hire people who helps transform the company?
Had we identified processes or programs that needed improvement that directly affected the company’s profitability?
What effect did we have on improving company culture?
How have we positively affected company client relationships?
Do we make our company money daily rather than take company money daily?
What’s the net increase or decrease simply having us on the books?
These types of questions will cause us to face the reality of how our life is affecting the financial performance of our company.
We may realize we have been a key player in our company’s tremendous growth.
Or we may find our involvement has done little more than cover costs of our own position plus a little overhead.
A realistic view of what we do and have done for the company’s success will help ensure raise discussions are productive.
The Best Time to Ask for a Raise
Timing isn’t everything, but it sure helps.
When asking for a raise, it’s best to do it following outstanding performance on your part and / or during a profitable season for the company.
If you just want a raise, but know the company is struggling financially and you haven’t recently gone above and beyond in your job duties, asking for a raise is likely to result in a negative outcome.
But if you have been going above and beyond in your work and have clear, demonstrable occurrences you can convey, you’ll be setting yourself up for success.
It’s important to keep a pulse on your company and the industry at large.
Times of prosperity combined with labor shortages are good soil for raises.
A happy boss, healthy work culture, and lots of work in the pipeline are showers that bring flowers.
All that’s left then when you have good soil and rain is a productive, industrious seed (that’s you!) who’s willing to have respectful, informed conversations about pay.
Asking for a raise can be intimidating. Here are five tips and suggestions that will help you approach your boss confidently and professionally
1. Gather salary data for your review
The most well-informed person in a negotiation is typically in the most advantageous position.
As employees, it’s hard to be better informed than a boss because they have more access to internal data and industry experience.
Information is becoming more transparent though, and knowing what your counterparts earn for similar experience and efficiency gives you a leg up.
Knowing what competitive salaries are for your position also gives you peace of mind if you’re being paid well already.
The knowledge also helps you decide if it’s better to stay or go if pay becomes a deciding factor.
2. Use accomplishments, not longevity, as a basis for a raise and how those accomplishments impact the company
List out your accomplishments from biggest impact to smallest impact on company success.
Supervisors don’t typically know the full extent of what an employee has done to contribute to the company’s overall success.
Look beyond your job function for things like unexpected contracts, overtime, increases in skill, and what you’ve done with and for your co-workers.
Saying “I’ve been here a while so pay me more” means little to a boss and using an argument that like may show them you’re just a dead branch that’s been hanging on too long already.
Show off what you’ve done and then let them decide if it’s valuable or not.
3. Take stock of important benefits you want
Before you walk into a raise conversation, know your end game.
What do you want the result to be?
Is it just a pay increase or are you looking for other benefits, like workplace flexibility, title, paid time off, or equipment upgrades?
It’s also helpful knowing two numbers: The pay you want and the pay your willing to settle for.
Negotiation often includes some compromise from both sides to ensure it is a win-win.
If you can’t get the pay you believe is appropriate, can you settle for a little less with a timetable or action plan that gets you the rest of the way?
4. Rehearse the points you will raise in your salary review
Prepare, prepare, prepare!
Bring written key points if necessary, but also try to have it all ready in your mind.
Casual conversations are often more rewarding than formal note reading that makes people feel like they are in a debate class.
Consider alternative points of view and be ready to ask inviting questions like:
- What do you see holding me back from earning more?
- How can I be more valuable to the company?
- What are your priorities and how can I help mitigate your stress?
- Is there additional work I could do outside of my normal job function?
- How can I make my team more effective and profitable?
- What would make my request more reasonable?
- If the company can’t increase my pay this amount, what can I do and how long will it take to get there?
5. Build a Bench of Supporters
Before entering into a raise conversation, try to have and go to a mentor first.
This mentor could be in the same company but a different department, or a different company all together.
The important thing for a mentor is that they are a trusted confidant who wants the best for you and will be honest with you.
Share your accomplishments with your mentor and see if any are weak or unhelpful.
Ask your mentor what objections they can think of to help you prepare for the raise conversation.
Also, take stock of your current company relationships.
Have you been kind and helpful to coworkers, other company leaders, and subordinates?
How do they view your work ethic?
Cultivating these relationships will reinforce how valuable you are to the company and you never know if someone says something nice behind your back right before you walk into your negotiation.
The expected outcome of a raise conversation
Eye opening!
One thing is guaranteed.
Having an intentional raise conversation with your supervisor will increase your understanding and awareness of how you are valued within the company you work for.
The result may be exciting or disappointing.
You may find you and your boss view your contributions to the company differently, which is why it’s so important to enter into the raise discussion well prepared to express and defend your contributions.
One more thing is guaranteed though.
You’ll know what happens next.
A raise conversation will provide next steps.
Those next steps will either be 1) a raise (yay!) or 2) an action plan to getting a raise.
If you learn that a raise is not in your future, or that your company does not value your contributions the way you do, it’s a great time to reflect on whether this company is best suited for you.
In any case, the raise conversation will be illuminating and help you make informed career decisions.
How to recover from a failed raise conversation
I don’t think any raise conversation should be a failure in the sense of it not being fruitful.
Yes, you may not get a raise.
But you should, at the very least, get a plan for a raise.
Knowing what you can do or how long you must do it for will provide you clarity in looking forward in the company.
Negotiate if they say ‘No’
In case you haven’t realized it yet, most people hate change.
This includes bosses.
Whatever everyone is earning right this minute is the current benchmark.
It’s the standard.
It’s how life is.
A raise conversation is challenging the way things currently are.
And that makes people weary.
Hesitant.
Sometimes uncomfortable.
If your well prepared and respectful raise conversation leads to a no, you’ve got some internal choices to make.
You can accept it and end the meeting (not recommended), you can ask about action steps that would set you up for a raise down the road (decent plan B), or you can continue to negotiate (preferred).
Rather than accepting a no as a personal attack on who you are, try to view it as a sign.
A sign that the person sitting across from you is coming to a conclusion based off different data than what you have.
It’s possible that you haven’t done a very good job expressing your contributions to the company that exceed what your current job function is.
Or it’s possible that your supervisor has information you’re not aware of that would even cause you to realize a raise isn’t appropriate.
Other information you’re not privy to may include internal company losses, financial freezes, raise requirements for approval such as longevity or success benchmarks, responsibilities, client pressures, or internal goals.
During a raise conversation, it is always appropriate to respectfully ask if there is anything pressuring the company that makes giving you a raise problematic.
It’s also always appropriate to ask how you can become more valuable to the company so that you can be compensated better.
Negotiation should always be centered around win-win.
As employees, we win when our company wins.
If we make our company more successful, we can and should be compensated better within reasonable parameters that result in a win-win.
What to do after a raise conversation?
Work hard!
There’s a reason you were convicted to even having a raise conversation in the first place.
You worked hard and felt more valuable to the company than what you were seeing on your pay stubs.
After a raise conversation, it’s imperative to continue living out your strong work ethic and improve it all the more.
Never settle for the status quo, especially if you are rewarded for your hard work with a raise.
Keep learning, keep growing, and keep finding ways to make your company more successful.
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