A pay raise can be a powerful motivation for employees. It can boost their self-esteem and inspire them to work harder.
The key to a successful salary increase request is preparing a solid business case. This will help your manager understand why you deserve a raise.
Be ready to present concrete facts about your company’s success, such as new clients or sales revenue. These hard numbers are difficult to dispute.
1. Know Your Worth
The first step to getting a raise is knowing your worth. This includes not only your skills and accomplishments, but also how much you are being paid compared to others in your field. Use online tools like Glassdoor, PayScale, and Indeed to find salary benchmarks in your area. You can even add parameters such as job title, years of experience and location to get a more accurate valuation of your market value, and support your request with valid reasons for a raise.
If your current salary is significantly below the average for people with your position, you may be able to make a strong case for a raise. However, don’t rely on your own feelings to determine how much you deserve to be paid. You must be able to make a clear and cohesive argument based on tangible evidence of your success.
Take a close look at your job description and identify the specific tasks you perform on a daily basis. Then, determine how often you go above and beyond your duties to contribute to the company’s goals. Be prepared to present these examples during the meeting to bolster your request.
You can also prepare for the meeting by identifying the additional responsibilities and projects you’ve taken on since your last performance review. You can then explain how your new responsibilities have directly contributed to the company’s success. This is an excellent way to demonstrate that you are a true asset to the business and should be compensated accordingly.
It’s important to remember that the discussion is about the company as a whole, not just you. Your boss will want to know that the company is doing well as a whole, and this will impact their decision. If the company is going through a rough patch, such as a downturn in profits, it might be wise to wait for a more positive time to discuss your salary request.
Be ready to share your vision for the future and how a pay increase can help you achieve it. Your manager will want to be sure that you are dedicated to the company and invested in bringing value to the organization. This will give them a good sense of confidence that you’ll be around to stay long enough to justify the investment in your salary.
2. Know Your Accomplishments
During the negotiation process, your employer will evaluate you and your case much like an investment. They will want to know how you’ll benefit the company if they invest in you with an increased salary. Therefore, you must bring tangible evidence that shows your value. This may include revenue increases, improved client relationships or cost savings. If you can quantify these benefits, it makes your case more compelling to the company.
The best way to prepare for your meeting is to document all of your accomplishments since your current salary was set. Keep a journal or spreadsheet, and write down every win, achievement and result you can think of, even if it doesn’t seem significant at the time. As you work, jot down the activity and result in this format: “Activity – Results.” For example, you may write: “Created new sales strategy, generated $10K in revenue.” This log will help you build a strong case for a raise.
In addition to your performance data, you should gather positive feedback from clients and colleagues, as well as documentation of professional development efforts (training programs, workshops, certifications or courses). You may need these details if you’re competing with someone in a similar position who has completed comparable professional development activities.
It’s important to understand that your employer may be concerned that you are asking for a raise because of personal needs such as an expensive car or home improvements. If you present your request as a need, it will likely be dismissed by the company’s leadership.
If you make your case based on need, it’s unlikely that the company will have any money left in its budget to provide you with the increase you’re seeking. However, if you make your case by discussing the profits of initiatives that you spearheaded or teams that you’ve led, it will resonate with employers as irrefutable proof of your ability to generate profit and add value.
When you’re ready to discuss your case for a pay raise, focus on the projects that have been the most successful. Then, highlight your specific contributions to these initiatives by describing your role in them and any measurable improvements you’ve brought to the company.
3. Know Your Value to the Company
If you want to negotiate a pay rise, it’s important to know how your work benefits the company. Your boss will consider this as they assess whether to invest in you, so you’ll need to make a compelling case. For example, did you land new accounts, improve existing client relationships or implement efficiency measures that saved the company money? Clearly identifying your contributions to the bottom line can provide irrefutable evidence that you deserve a raise.
Also, make sure you can explain why you’re a better value than others who are earning the same amount or more than you. You may have taken on additional responsibilities since your last review or agreed to take on a project you felt was beneficial to the company’s long-term goals. You might even be able to show your employer how much you are worth by researching salary benchmarks for your region or industry. Resources like Indeed, Glassdoor and Salary are useful for gaining insight into what professionals with your skillset and experience should be earning.
You can also use your research to create a rationale for why you need a raise. If you’re working harder than most people in your role, for instance, your manager will be more likely to agree with your argument that you should be paid more.
It’s important to choose the right moment to ask for a raise. You’ll want to avoid asking during a time of financial strain, as this can put your boss in an awkward position and make them more hesitant to grant you what you’re asking for. Bringing up your request during or immediately following a performance review is an ideal time, as your contribution and growth will be under close scrutiny.
Lastly, you’ll want to be aware of any internal limitations or restrictions on pay raises at your company. If you’re being limited by the company handbook or other external factors, it’s going to be more difficult to justify a raise. Knowing this in advance can save you a lot of stress in the event that your boss isn’t able to accommodate your requests.
4. Know Your Options
Regardless of how impressive your job performance may be, your employer may not have the budget for a pay increase. This is especially true during a time of economic stress when companies are looking for ways to reduce expenses and boost bottom lines. It’s important to have your facts and figures ready if you decide to ask for more money.
You should know how much you’re being paid compared with your region, industry and job type. Using resources like Glassdoor, PayScale and the Bureau of Labor Statistics will help you establish your compensation benchmarks. You should also familiarize yourself with your company’s compensation policies, which you can find outlined in your employee handbook or HR portal. This will give you a clear understanding of the parameters within which you’ll be expected to operate should you receive a raise.
If you’re unsure how to approach the topic of a pay increase with your manager, practice by role-playing with a trusted colleague. This will give you the chance to get feedback on your tone, body language and eye contact. It’s important to be confident, but don’t come across as arrogant or demanding.
Your boss may be able to grant you a pay rise based on your accomplishments and the value you add to the company, but he or she may need to get approval from someone higher up. If that’s the case, prepare a written proposal detailing why you should be given a raise. This will make it easier for your manager to present the request to a higher level of management.
If your manager does turn down your request, be sure to express your continued commitment to the company and your desire to grow within your career. Then ask if there are other forms of compensation you might be able to negotiate, such as flexible work hours, professional development opportunities or a week in Hawaii for a business conference. This shows your willingness to consider non-monetary options that might be a better fit for your situation. Also, be sure to understand the reasons for the decline so that you can continue to improve your impact and prove yourself to the company in the future.
