How to Ask for a Raise
Seven ways to approach compensation conversations to get the paycheck you deserve
We are all working to earn a living. And it is foolish to be working for less than you are worth, especially in an employee-driven job market.
While you should work to maximize your earnings, you should also work to maximize your professional brand. When it comes to your salary, this is done by maintaining realistic expectations and approaching compensation conversations the right way.
A few things to ponder if you feel that you might be underpaid:
First, consider the BIG picture that is your life: What you bring home does not define your worth as a human being.
But also consider the other big picture that is your career: You deserve to make a salary commensurate with the value you deliver. And if you’re underpaid, you may be losing out on dollars each month that could add up to better financial outcomes long-term.
Lastly, remember that despite any pride you may have around your contributions at work, others may not share the same perception of the value you deliver. While you may think you are underpaid, the data may prove otherwise. Therefore, you must take a data-driven approach versus an emotional approach when it comes to negotiating your pay.
Asking for a raise is easier said than done.
Most of us grow up and are told not to talk about money. We avoid asking our parents about their finances. We seldom talk about what things cost. And when we get our first job, we are advised not to discuss what we make.
Even conversations about salary at work are few and far between. We talk about money during our employment offer. We talk about it again when we earn our first promotion.
These conversations are all reactive. We sit in the passenger seat and go along for the ride.
And because we have so little experience in our lives talking about something so important as what we earn, the thought of doing so, proactively, with the person who primarily governs our employment (i.e., our boss) seems downright scary.
While the following tips will not alleviate all of the scariness in your next salary-related conversation, they will at least prepare you for greater success.
#1 Understand how your company compensates.
It is the responsibility of the employer to have a compensation philosophy and methodology in place. Unfortunately, while many do, an equal number do not.
Regardless, employees should seek to understand some basics about how compensation works at their company in order to set realistic expectations.
- What types of increases are typical?
- When do increases typically happen?
Use yourself as another data point: what was your starting salary? What percent increases have you received in the past, and at what frequency? An example of how this can play out: if your company typically provides increases of 3% to 5%, asking for a 10% raise will be too bullish.
Be familiar with your company’s approach to compensation, and you will gain some footing.
#2 Perform research on your market value.
How are other professionals compensated for the same or similar role?
The answer may not be straightforward, but Google offers a starting point.
Calibrate your expectations by checking out sites like Glassdoor and LinkedIn to get a general feel for the market. Use a salary calculator to get more specific data (PayScale is a great one).
Be careful not to compare based on your title alone. Look for similar positions at companies identical in industry and size. Also, be sure to compare salaries based on your geographic region. If you’re a developer based in Portland, Maine, comparing your salary to a developer in San Francisco will be fruitless.
Lastly, ensure your research takes into consideration your years of experience, both total years of professional experience and number of years in your role, if possible. These are typically key factors companies take into consideration when assessing compensation. If you have ten years of professional experience but only two that are highly relevant to your current profession, you may need to adjust your expectations.
Knowing these data points before you go into any conversation will give you a leg up.
#3 Decide if you want to go in with a specific number or range, but avoid being open-ended.
While a specific number may show that you’ve done your research, this poses two risks. You either ask for something too high and overinflate your value, leaving your manager scratching their head. Or, on the flip side, you ask for something too low and shortchange yourself, leaving money on the table.
Alternatively, go in with a range in mind, but ensure the range is tight and research-based.
As a best practice overall, avoid being open-ended. Going into a compensation conversation without a defined ask creates ambiguity. There’s also a good chance that the other party might respond to your open request with “well, what did you have in mind.”
Even if you don’t start the conversation with your number or range, be ready to provide it.
#4 Keep the discussion focused on you.
When talking about compensation, it is critical to keep the discussion focused on you. The names of other employees should never enter the conversation.
Come prepared to discuss:
- Your performance and growth
- What you are doing to help make the company better
- Your expectations and goals when it comes to your role and compensation
If your main negotiation points are data from the watercooler or a Glassdoor Salary review for your company, you are missing the boat. Further, avoid the temptation to draw comparisons to colleagues like “I’ve been here longer” or “that person is always late, I’m always here on time.”
Take the high road and keep in mind that many factors go into determining compensation. If your employer is well-established, chances are they have a robust methodology in place and tools to help with defining and benchmarking for different roles.
If you think there is genuinely an issue of fairness when it comes to how you are paid and you feel it is critical to “name names,” raise your concerns with HR and not your manager.
#5 Do not use another offer as leverage.
Given the demands of the job market today, using another offer as leverage to negotiate a raise is quickly becoming a common tactic, but it is highly ineffective. Here is a short anecdote to demonstrate why:
When I was working as an independent consultant, a peer of mine leveraged this approach. While she was making a competitive salary, she received an unsolicited job offer for almost 18% more at a much larger competitor.
Based on salary alone, making a job change seemed like a no-brainer. But instead of just taking the job, she decided to use the offer as leverage to negotiate a raise. Why was she even negotiating?
Because the offer on the table represented a much different type of job. If she chose to accept it, she would be in a similar role, but in a more cutthroat environment, with much higher expectations around her weekly hours and travel.
The competitor would not just be paying for her 9 to 5…they would be paying to have access to her 24/7. Because of this, she didn’t really want the job, but she still wanted to use the number as a negotiating tactic for boosting her current salary.
But when she attempted to use the offer as leverage, it backfired.
Asking for an 18% increase was unrealistic for her current employer to ever meet. While the role was similar and the companies were in the same competitive market, the actual jobs themselves were apples and oranges. Her employer encouraged her to take the other offer and she could not find a way to backtrack.
Using another job offer as leverage rarely ends positively. If you want to stay at your current company but want to earn more, negotiate your pay by focusing on your performance and growth.
#6 Avoid asking for a raise during your performance review.
Though it may seem fortuitous, avoid asking for a raise during a performance review. While performance reviews are a great time to ask about your growth path and getting to the “next step,” it is one of the most challenging times to ask for more money specifically. Why?
Chances are, if 1) your company is performing well and 2) you are performing well in your role and 3) it has been a while since your last increase, your manager may already have this covered.
If not, hold off as it will likely catch your manager off guard, and you will not have the proper platform to make your case.
Talking about compensation is a normal part of employment, but it is also a big topic because it doesn’t come up frequently. Discussing and negotiating a raise shouldn’t be a footnote at the end of a much larger performance conversation.
Alternatively, a great time to discuss compensation is some time after your review, assuming your review was positive. Discussions in the weeks or months following a performance review will better equip you with data to leverage when making your case. Further, holding a separate meeting may give your request the attention it deserves.
#7 Be thoughtful about your timing.
Timing is one of the most important considerations when it comes to asking for a raise. Be savvy and consider the following before requesting time with your manager:
- Be mindful of current events, the company vibe, and your manager’s mood. Use your emotional intelligence to figure out the right time to approach your manager. Request the conversation after wins and not while in the middle of crossing any major hurdles.
- Be mindful of the timeframes when your company typically awards raises. If your company is consistent in providing raises the same month every year and you don’t receive one, it will not be in your favor to ask for something the following month. There is a reason you didn’t receive a raise, whether it be due to your performance or some other external factor such as budgeting or the political climate of the organization. This situation, however, might create a starting point for a conversation with your manager around your growth path.
- Be aware of when your company is assessing and locking in budgets for the following period. If you know your manager is working to lock down a budget for next year, it might make sense to approach them sooner than later. Trying to ask for a raise the month after budgets have been locked in will likely not produce great results, even if you are performing well.
Lastly, avoid asking for a raise if you are less than one year into a new company.
This may seem like common sense, but in my experience, I have witnessed employees asking for raises as early as five months into a job. Unless you are working for a company where such a precedent exists, don’t do it.
If your company is thriving, you have demonstrated growth, and it has been at least a year since your last increase, there should be nothing holding you back from the conversation. Just remember to perform the right research and approach the discussion with realistic expectations.
How will you prepare yourself for your next compensation conversation?
