Often times, asking for a raise can be uncomfortable. It can be viewed as a stressful situation, and because of that, the subject isn't broached as often as it should be. However, when asked at the right times, and in the correct context, you can make a case for a raise that can be tough to argue against. Some things to consider before asking for a raise include your length of time in your position, what your work is worth in your area, and significant contributions you have made to your organization. After answering those questions, you have a starting point on which to build your request for a raise.
Even with a well-prepared spiel, most people still find addressing a salary increase to be a sensitive situation because they feel as though it may possibly jeopardize their future with the company if the increase doesn't get approved, or if the discussion brings some of their flaws to light. For example, if you go to your manager expecting to discuss your increase with favorable results, and instead your lack of prioritization skills are discussed as a major downfall to your position, it could possibly be problematic to your job security overall. This is why a great number of employees, both skilled and unskilled, will often avoid requesting an increase in salary, even if it is merely a small cost of living increase after several years without an increase.
However, if you fully prepare yourself for any issues that may arise during a salary review, you can confidently ask for an increase in pay that reflects what you contribute to your organization. Your key to successfully selling your salary increase request is to have specific money-saving or money-making instances ready to discuss during your salary review. In other words, did a shrinkage amount decrease drastically because of an idea you implemented? If so, how much money annually is it saving your company? Or did you land a new client that has consistently purchased goods? How much has your client purchased in the past sales reporting period? Having numbers such as this handy show a direct contribution that you have made to your company in dollars and cents.
What are others in your position and immediate geographic area making for doing what you do? In addition, what are the long term goals of your organization, and where do you fit into those plans? What are your recent wins, and significant efforts in respect to the overall success of your organization? You should have firm, well thought out responses prepared to all of those questions. Your answers should be positive because this is your chance to brag about your accolades, and spell out in terms of your efforts, exactly why you should be better compensated for doing your job. The amount of your salary should be within 10% of your geographical average for your job title, and if you are not making within 10% of your peers, that should be the salary discussion that you have prior to asking for a performance-based increase from your employer. A salary increase based upon the good work you're doing, and an increase, because you are grossly underpaid for the job you're doing, are not to be confused with one another, or allowed to be intertwined.
You shouldn't ask for a raise prior to your six month anniversary on your job. Your one year service anniversary is the typical time for a raise to be addressed. If you have been doing excellent work for the preceding twelve-month period, by all means, ask for a raise. Have any key points that you would like your manager to focus on ready to bring to their attention. Also, be prepared to address any negatives that may be brought up during your review. If you had a week where you missed your train and were late 3 times, be ready to have that week revisited, and have an explanation at hand as to why it will not happen again. Any issues that may be viewed in a less than stellar light on your behalf should be part of your argument, as you will want to acknowledge them and have a plan to explain what you've done to ensure that they will not happen again. This will show an ability to own your faults as well as your successes.
Typically, if you have a yearly review, you should be able to ask for a cost of living increase at the time of your performance review. Also, if you change roles or your number of direct reports changes. For example, if you had 3 employees that directly reported to you, but changes in the company structure means you now have 6 employees who report directly to you, you should ask for an increase in salary due to your doubled responsibilities. A cost of living increase is typically in the 3% to 5% range, whereas a performance-based salary increase should be somewhere between 10% and 20% of your current gross income amount.
On average, you can ask for between a 10% and 20% raise in your current salary. That means if you currently make 40,000 annually, and you ask for a $4,500 per year increase, you are well within your salary range increase expectations. Of course, you should ask for an increase that coincides with any responsibilities you've assumed in the period since your last increase. You should be able to justify the amount you are asking for with tangible results that you have spurred or contributed to. If your job doesn't directly result in either money being earned, or cost savings that can directly be linked to the job you're performing, you should be ready to somehow directly correlate an aspect of your job with either making or saving money for your organization. For example, if a successful marketing campaign that you spearheaded resulted in a 15% increase in social media followers, the link between that visibility and sales can obviously be made.
This isn't a one size fits all response. Your manager may tell you that it is outside of budget constraints at the current time, and to revisit the request later. You may be told that you have capped out in salary while in your current position. In the case of capping out, you may ask for other types of compensation, such as more vacation time, a possible title change, or perhaps the ability to telecommute part or all of the time in order to save on the expense of commuting to and from work. Perks like additional vacation time can be traded in as cash if your company allows you to take a paycheck for unused personal and vacation time at the end of the year.
While some perks, like telecommuting, don't have a specific dollar value that can be assigned to them, you can translate the number to dollars by doing the math on your mileage expenses for the number of days you are permitted to work from home. This can actually become quite a significant amount of money annually with the number of hours and fuel amounts taken into consideration over a period of a year. Do the math. Your additional perks may very well add up to a substantial amount of money annually, and while not a literal salary increase, it can certainly give you a great deal more disposable income.
If you are asked to revisit your request for an increase, be sure to get a specific timeline that you should adhere to, and continue to track the stellar job you're doing so that you have key talking points when you readdress your request for a salary increase. You should always have a running list of your talking points handy before you ask for a raise again. Especially in the case of a sudden transfer or promotion so that in those instances it will not be difficult for you to make a case for a salary increase the moment the opportunity presents itself. As long as you have your current successes well documented and ready to review, asking for what you are worth in your position should become less uncomfortable and more of a natural topic to openly address with your employer. Keep in mind, it is up to you to ensure that you are being adequately compensated for the time and commitment that you are providing to your employer.
There is absolutely no shame to be had in receiving a salary that is comparable to others of your skill level locally, and you should always be well researched and well versed in the current acceptable salary range for someone of your skillset. Finally, don't be afraid to talk about your successes. You must be able to be a showcase to your own accomplishments so that others can view your successes.
Thanks for reading! Visit Raise Guide for more.