HOW TO ASK FOR A RAISE
Let me start off by telling you how to NOT ask for a raise.
Don’t Demand It. “I want a raise and I want it now.”
Don’t Threaten to Quit. “I received another offer, but I’d be willing to stay if you can counter.”
Don’t give Ultimatums. “If I don’t get a raise, I’ll start looking for another job.”
Don’t Complain. “I’m underpaid and overworked.”
Don’t Compare yourself to others. “Becky got a raise and they haven’t even been here as long as I have.”
The first step to asking for a raise is being able to justify why you deserve it. The big mistake people make is, they assume that their company is entitled to give them raises; they are not. Yes, it is standard practice for companies to execute annual reviews or merit increases (for company morale) - however, it is not a legal requirement. When companies do execute annual reviews or increases, it is 100% performance based. For example, if a company has an unprofitable fiscal year, they may withhold increases and/or bonuses. If they have a profitable fiscal year, they may give larger increases and/or bonuses. While companies want to offer fair compensation to their employees, they must also prioritize the bottom line financials.
Bottom line, if you want to guarantee yourself an increase, stay focused on the bottom line and ensure all of your actions daily are directed towards profitability and/or measurable wins for the company.
How to Ask for a Raise:
Prepare your Pitch
Why you deserve a raise? What have you done (outside of your daily job responsibilities) to warrant an increase. Have you taken on additional responsibilities for extended period of time? Have you been producing more revenue, far exceeding your targets?
How much of a raise are you asking for? How did you determine this figure?
Do market research to determine what is fair compensation for your role vs. what you are being compensated. If you find you are above market value, you may have to consider working towards the next level of your career.
What will you say to your Manager? Delivery is everything. It’s not what you say, it’s how you say it. **Note, No Manager wants to help or retain an entitled employee. Every Manager wants to retain their most valuable employees.
Reference prior conversations in which goals were set or promises were made:
“during last years’ appraisal you asked me to do a, b, & c. I’ve successfully surpassed a, b, c & I did d, e, f.”
“during my mid-year review, you mentioned we could review my compensation after x date. It is now x date and I wanted to follow up.”
Highlight your accomplishments & how they’ve impacted the company.
“Since the beginning of the year, I have driven $1M in sales vs. a sales goal of $500K, doubling my targets and recovering the deficit from other departments.”
Highlight how you feel about your job - bosses want positive production from their team, so if they feel you are invested in your job, they will work to help you.
“I really love my job and appreciate the new responsibilities assigned to me. I am learning a lot and am invested in the success of the company.”
Leave personal issues outside & focus business only - don’t reference your rent, your bills, your commute - those are all personal decisions you make and companies are not responsible for your fiscal responsibility.
Schedule a Meeting with your Manager
Consider when your Manager is most focused, least busy, and has more patience. Target a “good time” for your Manager.
Be Prepared to hear “No.”
Most raises do not happen on the spot - especially if you work for a corporation. There are budgets and approval processes. Most of the time, your Manager will need to submit a pitch requesting a raise for you. This may not be able to happen immediately and whether your Manager goes to bat for you will be dependent on your pitch.
Ask for Feedback
Whether you are granted a raise or not, always ask for feedback. Self-reflect and find ways to improve based on Manager feedback. Your Manager’s perception of you will determine your success and future raises in your company. Respect the feedback and if you disagree with your Manager’s feedback, you will need to find new ways to change their perception of you.
Show Gratitude
Your Manager’s perception of you will determine your success with the company. Make sure you always end on a positive note, whether or not you are happy with the final outcome.
