If you have a job but aren’t being paid what you’re worth, you may be thinking about asking your boss for a raise. If this is the case, you need to be prepared to convince the powers that be that you not only deserve one but that you’re worth it. Don’t make the common mistake of basing your request on your need for more money or your inability to meet your financial obligations. Businesses do not base salary increases on employees’ personal needs; they base increases on employees’ worth to the company, the quality of their work, company pay scales, and budgetary concerns.
Don’t Give Ultimatums
What’s the number one rule for requesting a raise? Don’t give ultimatums. This tactic will put your boss on the defensive, and may force you to quit your job or eat crow. Your goal is to convince your boss that you’re worth more money because you do an exceptional job or you’ve accepted additional responsibility that warrants an increase or promotion.
First, perform an evaluation of your skills, productivity, job tasks, and contribution to the company. Look at your job duties and performance from the company’s perspective and base your approach on the company’s needs. If you have a written job description, dig it out, along with copies of your last two or three written performance reviews. Jot down the major tasks you perform that may not be part of your formal job description. The goal is to show or remind your boss of your tangible contributions to the company, so make a list of your accomplishments and, if possible, the dollar value of each to the company. For example, you might say: “I saved the company $20,000 this year by researching and negotiating contracts with new vendors.”
Next, you need to determine the going rate, both inside and outside the company, for what you do. Ask your company’s human resources department if there are company-wide salary ranges for your position and several related positions above yours. Review these, along with the salary information and compensation surveys you obtained from the BLS website. National information can give you an idea of what jobs similar to yours typically pay, but salaries vary from one region to another. Be sure to consult some local information by doing an online search for relevant salaries in your area (for example, search for “average salary marketing manager Des Moines”).
To increase your chances of getting the raise you want, you need to know several things about your company. What is the company’s financial condition? Is it struggling to stay afloat? Is there a budget crisis? What is the policy on salary increases? Are all employees reviewed at the same time each year? Does your department have a budget for salaries that it needs to stay within? If so, you’re in direct competition with the other employees in your department for limited funds, and you should work on making yourself stand out from the crowd.
Timing is everything. If you’ve only been at your job for a few months, asking for a raise probably won’t go over very well. However, if you find after a few months that the company hired you at a salary well below that of others in your position and with your experience, it may pay to discuss this with your supervisor. If you’ve been formally or informally disciplined or chastised recently, wait at least a few months before asking for more money.
Don’t ask to meet with your boss during the busiest time of the month or busiest days of the week, which for most people are Monday and Friday. It’s to your advantage to arrange an appointment at a time that’s convenient with your manager.
Not all companies are in a position to raise salaries. However, your employer may be able to offer you additional benefits instead, such as extra paid leave, tuition assistance, stock options, overtime, or a promotion, if one is warranted. When comparing salaries, it’s important to consider the financial value of these and other benefits and perks. If your company pays for all or part of your health insurance, this is as good as money in your pocket. The same is true of a 401(k) match.