Employees no longer wait until review time or the beginning of the year to ask for a raise. The current generation, yes millennials, asks for promotions and raises when they think they deserve them. Asking for a raise is tricky, but can be worth-while when done right. You want to be well prepared when facing the boss, base your request on facts and data, and be ready even if the answer is no.
How Often Should You Expect a Raise?
It used to be that getting an annual raise was a forgone conclusion, but that isn’t the case any longer. While most places will still only give a yearly raise, you will need to make sure to ask for it if it isn’t offered. There are only a few industries where you can get away with a hike in pay more than once per year, including the tech industry where demand is high, and the food and service industries. Other than that, you need to be an all-star in your position to command more than an annual raise.
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When is the Best Time to Ask for A Raise?
First, you will want to find out when your company typically grants raises. It’s often at the end of the year, or it could be on your anniversary date. If it isn’t stated in the employee handbook, ask around to find out, or ask your manager when salaries are usually discussed. No matter when raises are handed out, you need to be mentioning a raise in your salary three to four months BEFORE they happen. If you wait, the decision on how much has likely already been made.
How Much of a Pay Bump Can You Expect?
When asking for a raise, you need to be realistic. If the typical raise is 2%, you can’t go in expecting a 10% raise. In that case, you should be looking at 3%-4% for a raise request. Do your homework to understand what other similar positions in the industry are paying, as well as companies of a similar size. You may also want to wait for your boss to offer a number, as it might be higher than you think.
Come Prepared with Data, and Realistic Expectations
Present Your Case With Performance Results
Don’t put your manager on the spot by demanding a raise, because s/he likely needs to talk to HR or other managers to get approval. Start with a conversation. Share the reasons why you deserve a raise. Those might include increased responsibility or data showing that similar jobs are paying more in the market. With more pay transparency in companies, you might know that your team members in the same job with the same amount of experience are making more than you.
Have Realistic Expectations
Most companies have a salary or promotions budget that only allows for a certain number of raises each year. If your salary is lagging significantly, it could take more than one increase to get you fully caught up. That’s ok as long as there’s a clear plan and commitment to get you where you should be in a reasonable amount of time.
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Know your Goals
What salary do you expect, and why? What will happen if you don’t get it or don’t get as much as you’re asking for? You don’t have to share all this information but knowing what you want vs. what you need will help you stay focused and negotiate effectively.
Related: The importance of setting goals
Don’t Sabotage Yourself
It can be easy to come up with many reasons why you should get a raise, but most of those reasons don’t mean anything to your boss because they aren’t relevant. Avoid these areas when discussing a pay raise.
How to Avoid Self Sabotage When Asking for Raise:
- Your financial needs or personal situation do not make you deserving of a raise. A raise is about your contributions and value to the company. A higher mortgage, new baby, or pending divorce are not reasons to get a raise and aren’t relevant to your salary. If you base your request on personal needs, it’s likely your manager will turn you down.
- Be careful about suggesting that you are owed something by the organization. It’s better to focus on what you’ve delivered, how your job has become more complex, and how your role has grown in scope and impact. Pay is about contribution and results.
- Threatening to leave and holding your boss hostage is risky. If you do plan to resign or take a higher paying job, you can be honest with your manager. But, make sure she knows how much you’d like to stay. If you do plan on leaving, be ready to give notice if the raise doesn’t come through.
In summary, keep your reasons confined to your position with the company and the accomplishments you have. Anything else will hurt your chances at a raise.
Is it Smart to Position a Counteroffer?
While it might seem tempting to play hardball with your employer, the smart thing to do is not make a counteroffer. The odds are that if an employer gives in to the counteroffer, that employee will be leaving in a year anyway, so it makes no long-term sense to agree to a counteroffer. Instead, if you really have the data to prove it, you could explain that you have taken on more responsibilities and are due for a larger increase because you are doing more of what a higher-up would do.
What if the Answer is No?
Sometimes, the answer to your question of getting a raise will be no. Your next question should be asking what it would take for you to get a raise when that happens. The answer to this follow-up question will provide you some goals to shoot for so that they will say yes the next time. However, if they cannot come up with reasons why you either have a bad manager or a poorly structured company.
What if the Answer is “Not Yet”?
Work with your manager on a development plan to build your skills and demonstrate the results needed to justify a raise. Create a plan with clear agreement on goals, milestones, and a timeline to review your progress. Check-in with your manager frequently to make sure you’re on track.
Related: Learn how to better handle hard conversations
When to Follow Up
Whether you get a “no” with some explanation or a “not yet”, it is important to follow up with your manager to show them that you are making progress toward a “yes”. You’ll need to give it some time, but usually, six months is a good marker to follow up on things. At that point, you will likely either get the raise you wanted earlier, or you will find out that you will get the raise at the usual time all raises are given.
Getting the Raise You Deserve
Getting a raise at work isn’t rocket science, but it does involve doing a little homework and making sure that your manager knows the things that you’ve accomplished during the last year. Be realistic in your expectations and you’ll end up coming out ahead every paycheck.
Do you need the courage to ask, or lack confidence in your negotiation skills? A coach can help you increase your confidence and ask for what you’re worth. Contact us to learn more about executive coaching info@reverbpeople.com.
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