Asking for a raise or salary increase is one of the most nerve-wracking experiences. This is why so many people never muster up the courage to ask and live in hope that their boss will notice their hard work and pay them accordingly. Unfortunately, your boss will likely assume that if you aren’t asking for an increase, that you are happy with what you are getting. So ask you must. But at the same time, you don’t want to appear pesky or make an ultimatum you’ll live to regret.
I’m thinking of one colleague who declared he would quit if not given his retiring boss’s job. The executive board opted for an outside candidate. Now he must quit if he is going to stick to his word but hasn’t yet been able to find a new job. A good rule of thumb: avoid ultimatums.
I’ve pulled together some helpful steps to prepare you before you get off on the wrong foot.
1. Find out how much you are worth on the open market.
What does someone with your skills, training and experience typically earn in your field? Are you currently underpaid, on track or overpaid relative to the market? Use salary surveys; ask colleagues, mentors, and recruiters to find out what you should be earning. Why would you be worth more than the average for your industry? Do you have a great record of accomplishment?
2. Consider your entire compensation package.
Do you have a flexible schedule or can work from home a few days a week? Are there excellent training and development opportunities you can take advantage of? What about your commute time? Are the growth prospects for the company good and can you get on an upward career path that is exciting? What about commissions, bonuses, or share options? Vacation time? Some companies may include particular benefits such as a company car. If you can’t get a pay increase could you get something else of value?
3. Regularly prime your boss.
A great time to ask is right after you’ve accomplished something great, especially if it makes a big difference to the bottom line. When your boss acknowledges you, you could drop a hint with a big smile saying, “Does this mean I’ll get a bigger raise (or bonus) this year?” Or, “I trust this will help boost my bonus.” Plant the seeds that you expect the good results you produce to show up as an increase in income or bigger bonus at year-end by dropping friendly hints throughout the year. When your boss sits down to think about who gets what, he or she will be more likely to reward you if they think you deserve it and are expecting it. If you do this throughout the year, you may not need to ask for a raise at all.
4. Make a solid case.
Every quarter, whether your company or manager requires it or not, type up a memo to your manager with bullet points of your accomplishments. Your manager may or may not be aware of everything you are working on and how you are contributing to the company’s success, so make it easy for your boss to see how hard you are working and how valuable you are. Your annual performance review should never be a surprise, as you should be giving your boss everything needed to write up your accomplishments.
5. Use the power of leverage.
The best time to negotiate your salary is before you accept the job. This is your point of greatest leverage because if they want to hire you, they have an incentive to offer you an appealing compensation package. (Many women don’t negotiate at the start and just accept what is offered. Often men know that this is the time to negotiate hard.) Start on the high end of the salary range, as you can’t negotiate up, only down. If the money they offer isn’t what you had hoped for, ask for more vacation time, flex time, the option to telecommute, a company car or other benefits.
Once you are employed, your leverage is gone. So don’t take a job thinking you’ll be able to increase your salary once they’ve seen how fabulous you are. Once you are in, you’ll tend to get minimal salary increases. So make sure to get the most you can before you sign on. If you want to stay at a company, but feel you deserve a salary increase, you can create new leverage by getting another job offer. This is clear proof that you are worth more on the open market. You can use the competing offer as leverage to ask for a raise to entice you to stay.
I always recommend anyone working to keep their resume and LinkedIn profile up to date, stay active and visible in your field by attending association events and writing articles, and see what recruiters have on offer. Who knows, you might find a more appealing job elsewhere in the process!
6. Practice makes perfect.
Asking for a raise is scary and not something most of us do very often so we lack practice. I always suggest my clients practice asking for a raise and making their case for why they deserve it in front of the bathroom mirror. You’ll see if you have any odd body language that shows you aren’t confident in asking or if you get a bit awkward. You can also role-play and get practice with friends and family or your coach. Do this every day for five minutes until you are bored out of your mind. Now you’re finally ready to ask!
7. Write it down 10 times a day.
Write down the amount you desire as a positive affirmation to cement it in your mind. “I am earning $________ a year as (job title) at (company name).” People often get uncomfortable asking for more than they are currently making, especially if you are making a big salary leap by taking on a bigger role or starting at a new company. You can use the power of positive thinking to focus your mind on the salary you desire. This way, when your employer asks you how much you were thinking, you can respond calmly and confidently. You should keep on writing this daily until you achieve your new, higher salary.
Now, celebrate your success!
Reward yourself by treating yourself to something you’ve been hankering for; a new suit, a nice dinner out, a great pair of shoes or a new handbag. Then, take that raise and invest it wisely. Otherwise, you’ll simply end up spending a bit more here and there and will fritter it away.
