Asking for a raise requires preparation, skill, timing and a fallback plan. It also demands wrapping your mind around a basic fact many employees miss: A pay increase is based on performance and the market for your skills.
"The worst thing you can do is base a request for a raise on personal issues," says Bill Coleman, senior vice president for compensation at Salary.com in Needham, Mass. "Saying, 'I need a raise because I have a gambling problem' is a loser. It's also a bad idea to ask for a raise if the company is having layoffs. Superstars can get a raise because the company must retain its best performers. If you're not sure that you're among the elite, you're not."
Click here for seven no-nos when seeking a raise.
Build your case for a raise by making a list of your accomplishments in the previous year. If, for example, you've outperformed other sales representatives, have the figures handy to back up your statement. Remind the boss of the new accounts you've landed, or the current customers you've kept from jumping to the competition.
Don't be bashful about listing your accomplishments, but don't be boastful, either. Let the numbers tell the story.
If you're a manager, detail the initiatives you've launched and problems you've solved, and tell your boss how this has boosted morale and plumped the company's bottom line.
Before talking to your boss, learn what your company can afford by reading its quarterly earnings report, filed with the Securities and Exchange Commission if it's publicly traded, or by gauging its general economic health, if it's in private hands. If there have been layoffs and sharp cutbacks and desks remain empty after people leave, don't ask for the moon and don't expect much, if anything.
There are many salary surveys available online or at the library that break pay down by industry and job title. They're helpful but often not definitive. Keep regional differences in mind, and remember that engineers typically get paid more than English majors, even if they handle the same job.
Summarize your pitch for a raise in a short written statement, and have a trusted colleague read it. This will underscore any points you've missed or not made clearly, and may help anticipate your boss's response.
If you're a good employee in a competitive field, it's unlikely your boss will turn you down cold. But if your boss rejects your request and tells you to continue pulling on the oars, the game's not over.
"If you ask for a raise and don't get it, most people walk away," Coleman says. "That's just the first step. Your response shouldn't be whining, sulking or storming out of the office. You should ask your boss, 'What do I need to do to get the raise I think I deserve?'"
If the response isn't encouraging, it may be time to start looking for another job. No job lasts forever, and you may have exhausted prospects for advancement with your current employer.
If things don't go well with the boss, consider the possibility that your performance and attitude could be limiting your pay. If that's not the case, think about moving on. But don't threaten to quit on the spot, because your boss may wave farewell and you've got to be prepared to back your statement with action. If you don't have another job lined up, you're sunk.
Timing is everything in love, hitting the curveball and asking for a raise. If you don't receive an annual salary review, make your pitch when your boss has the time to listen. Chances are it won't be first thing Monday morning or late Friday afternoon. Start negotiations slowly--ask to set up a time in a short e-mail. Be patient if you don't get an immediate response. Your boss hasn't forgotten you--and don't assume that everything revolves around you, or should.
Tailor your pitch to your needs and the company's capabilities. More money is always nice, but taxes will gobble a good chunk of any raise, and your company may not be able to give you the salary you want. If money is tight, think about other things, such as education, child care and health coverage.
If you want to pursue an M.B.A., you may be able to cut a deal to take time off for class or even get tuition assistance. If you have small children, you may be able to work from home several days a week. You may be able to apply part of the raise to increased health benefits. Unless your job is covered by a union contract that requires everyone to march in lockstep, assume that every reasonable request is on the table.
1. Don't act like you're entitled to a raise
Entitled on what theory--your natural good looks or innate modesty? The private sector is filled with sharp elbows, and you've got to earn the pay hike.
2.Don't tell the boss why you need more money
Everyone has unexpected expenses, kids in school, kids who need braces or ballet lessons, or student loans to pay off. It's all irrelevant to your boss, who's interested in your worth to the company--not your pangs for that red sports car.
3.Don't stamp your feet, pound the desk or cry
Leave immature, unprofessional behavior to stock characters on soap operas. Histrionics doesn't cut it with your boss. Can it.
4.Don't say you should be paid the same as Good Old Billy Bob
Many companies keep salaries confidential, and arguing that you should be paid the same as a friend will put your pal on the spot. It also may be irrelevant. Your co-worker may have an educational background and experience that you don't.
5.Don't threaten to quit
Threatening to quit tells the boss you're not committed to the company, and therefore undeserving of a raise.
6.Don't get personal
Remember the wisdom of Hollywood mafia bosses: "This isn't personal. It's business." Tossing insults at your boss won't strengthen your case--or improve your working relationship.
7.Don't go for overkill
You're meeting with the boss to have a conversation about your pay, not to make a power-point presentation. Keep the meeting simple and understated. You know your boss and your boss knows you. Document your statements clearly and concisely, but don't make it a federal case.
