Can I ask for a raise yet? How to ask for a raise

• 2-minute read •
Four tips on how—and when—to request your salary increase.
If you stayed employed during the recent recession, there's a good chance you didn't get a raise. You probably felt scared asking for one. You may even have taken a pay cut. And you've probably been told—or you've at least told yourself—that you should be grateful to have a job at all.

But now that the recession is behind us, a question arises: When is it safe to ask for a raise?

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How To Get A Raise: Stress Value, Not Need

No one likes to ask for a raise. But there are situations when it makes common sense to say to the boss, "I believe I am worth more to this organization than I am being paid. I would appreciate a raise."

Never try to make a case for a raise on the basis of need. Organizations can stay in business only by paying people what they contribute to the bottom line, not their needs.
You are justified in asking for a raise when one or more of the following conditions exist.

• You are making a contribution toward your employer's goals above and beyond what is expected from your position. . You have been filling a more demanding position, which usually pays more money, for a considerable time.
  
• There is no formal system in place for performance reviews and you haven't had a raise in a reasonable period of time.
  
• You have an offer from another employer for more money and you are prepared to make a change if necessary.

Before you rush in to ask for a raise, you should understand that one of three things could happen. One, you may get the extra money. Two, you may find out you are not nearly as valuable as you thought you were, and that your future is limited to your present position. Or, three, you could lose your job when you cause the boss to focus on your performance in terms of hard cash.

Be prepared; be sure of your facts. Remember, you are making a sales presentation for a product (your service to the organization) to a buyer (your boss) who has a limited budget from which to buy answers to a number of highly competitive needs.

Make sure you know how things are going with your boss and the company.

Common sense tells us not to ask for a raise when the company is in the doldrums or when the boss, himself, has just been passed over for a raise. Choose the time and place when your boss is most apt to give you a fair hearing.

Find out how your compensation compares to other jobs in the company and in terms of what other employers are paying for people with similar responsibilities and experience. Know what the fair market value is for your talents.

Get a reading on how your fellow employees and your boss rate your performance. (It had better be a reasonably good report before you ask for more compensation.)

Get directly to the point when you meet with your boss.

Review your contributions, being as specific as possible in such terms as savings, increased productivity, growth in sales.

Underscore your loyalty to the organization. Suggest your potential for even greater contributions based on demonstrated performance.

Present hard data to prove you are not paid up to scale when compared to similar jobs inside the organization and in your employer's business category.

Be prepared to define a range of increase you think is fair, if you are asked to do so. Do not demand. Be ready to discuss the pros and cons of your performance. Keep your cool. It will be a rare boss who will not be a bit annoyed that you have had to ask, either because he has allowed you to lose touch with reality or because he has failed to recognize your worth and frustration. Don't be surprised at some backlash. Accept both praise and criticism with equanimity. Be ready to work out a compromise.

It is unlikely you will get an answer on the spot ... unless it is a resounding negative. Leave the door open for a positive answer or at least further negotiations later.

If the final answer is "yes," express appreciation (but do not go overboard) and work twice as hard to prove your boss made a good decision. Start right then earning the next raise. If it is "no," buckle down, do a better job and prepare for another chance. Or leave for a more rewarding environment.

5 Things You Must Know Before Asking for that Raise

I'm walking through the grocery store the other day with my buddy Wayne. Wayne is looking distraught--gloomy even. I ask Wayne what the problem is, wearing a concerned look on my face.

"Oh nothing, I guess. (here it comes) It's just that I've been working at the firm for seventeen years now, pouring my soul into my job, you know? You'd think my boss would have noticed the hard work and offered me a raise, wouldn't you?"

I could hear the violin musak ringing in my ears as we entered the frozen fish department. I reached into the ice and grabbed a half-pound mackerel and cold-cocked Wayne in the back of the head.

"Ouch!" He exclaimed, while staggering into some canned goods. "What the heck did you do that for?!" "Well, pal, as long as you're dreaming, pretend this fish isn't real." He didn't know what I was talking about. Clearly Wayne's mental wheel was spinning, but his hamster had long since perished.

"Look. You've got two chances of your boss offering you the raise you want--slim and none, and slim is buried up to his neck next to a fire ant colony with honey smeared on his face." I inwardly chuckled at my own humor. "You've got to ask for what you want and negotiate that raise."

That brings us to the topic of this article--negotiating a raise. Let's start with a few key assumptions:

1. You provide value to your company.
2. The company is doing reasonably well financially.
3. Re-read assumption #1.

Here are five things that you absolutely must know before knocking on the office door and asking for that raise:

They won't offer. Know what you want. They don't care about what you need. Talk contribution, not experience. Quantify your value. They won't offer. Many moons ago when I was just a little tyke, cementing my Lego blocks together with play-dough, my daddy gave me a sage, albeit tainted, piece of wisdom. "Son, the more you do, the more the boss will give you to do without increasing your pay. Don't take on too much or you'll end up a sorry so and so" he stated as he kicked our dog. "Goo goo, gahhh!" I replied. I didn't understand it at the time, but old dad was trying to tell me, in fact anyone who would listen, that the boss never rewards what you do. His solution was to do less than he was capable of. Well that just goes against my Tony Robbins-esque audio training, but the point sunk in. You have to ask for what you want. Most of the time, the boss does notice what you do, but she's under pressure every day to reduce costs and return more to the company bottom line. If you're willing to work for X, management will not offer you X+$2,000 (arbitrary number here). Don't fall into the trap that Wayne did. Resolve that you must approach the boss, as difficult as that is to do, and ask for the increase. Know what you want. Ever got up the nerve to ask for a raise, and as you stood their squirming, the big guy said, "Sure." You breathe a sigh of relief. That wasn't so bad. "Starting next week you'll see an extra nickel an hour in your check, and for you, I'll make it retroactive to the beginning of the month." You're understandably upset. How dare that guy offer me only a nickel an hour increase! But you take it, even saying thanks, because you shot your wad of courage just to make the request. You leave humbled, defeated, a broken person. No vacation this year. Grandma's going to have to wait for that liver transplant.

The problem was you didn't know what you wanted and didn't have an idea what you may have been worth. The boss' solution was to offer you a token to make you go away, and it worked. You need to research what others of your job description are making in other companies. If you make less, you've got some ammo. If you make more and think you're still deserving of an increase, maybe what you really need is a promotion. Whatever your situation is, get a specific figure in mind to negotiate to. I'm not suggesting that you go into the boss' office and start blabbing about the figure you have in mind. Just have that figure handy in case the big guy's (or gal's) offer is below what you expect--and be prepared to defend it.

They don't care about what you need. So sorry, but true. Assume that the boss doesn't care about your slipped mortgage payments, or your kid's need for braces, because she can't afford to. She's got a dozen other employees crying the same song. When I convinced Wayne to ask for an offer, he fell into this mistake too. "I guess I should wear my oldest clothes, look really haggard and depressed, like I really need the money, right?" he pitifully proclaimed. When I reached for the mackerel again he knew my answer.

You have to talk about your value to the company--plain and simple. Unless you work for the government, you won't get anywhere with the raise request based on need, and even that's not a sure thing anymore. What have you done to save the company money, or time, or heartache? You're making a sales pitch here, folks, and the product is you. "But how?" you may be thinking. Read on.

Talk contribution, not experience. Look, in today's dog-eat-dog world of increasing business competition, you're value is based directly on what you have contributed, and can contribute in the future to your company. If you've worked twenty years for the same company, I applaud your loyalty and longevity, but guess what? IT DOESN'T MATTER HOW LONG YOU'VE WORKED THERE! Actually it may, indirectly, only insofar as it has provided the knowledge and skills necessary for you to contribute more.

Contribution can be measured by accomplishments, specific things that happened because of you that improved your company's profit position. Multiple-choice test coming up. If you're the boss and thinking about giving a raise to an employee, which of the following two statements will sway you more: a. "I've got twenty-two years working in the bindery department." b. "My improvement projects in the bindery area have saved the company over $250,000 in the last five years alone. Here is the documentation if you'd like to see it."

If you said "b", move to the front of the class. Remember this--you are your value, your contribution, in the eyes of your employer. Years on the job don't mean you deserve anything.

Quantify your value. Notice something else about the multiple-choice test in the last section. The correct answer had at its heart a specific figure of savings. This is critical for you to have in your arsenal of business communication on the job. It has to be reasonably accurate too, so you can back it up if asked to. If you don't document the bottom line improvements you cause for your company, shame on you. Start today. This is critical not only to asking for a raise, but for promotions, avoiding downsizing, and any other reason relating to your career path.

Maybe you're thinking that, hey, some tasks are hard to put a value on because the payback is indirect. Helping on the company strategic plan comes to mind. Assign a value to your achievement anyway, backed up with some logic and circumstantial evidence, and leave it to your boss to tell you that you're wrong. At the very least, relate the value of the activity and say something like, "…and we both know how successful that was for the company."

What you've done is to provide support for your sales pitch and put that support in terms that all management understands--dollars and cents.

If you want a pay increase and you really deserve one based on what you have done for the company, feel free to go ahead and ask. Remember, they'll rarely offer without you making the request, but if you demonstrate your value through specific contributions to the bottom line, you're in a pretty good position to negotiate. If the hapless Wayne can do it, what's stopping you?

Getting a Raise: The Prep Work

The idea of asking for a raise intimidates many people, especially those who have never done it. But you can turn the process from mysterious to manageable by doing some important planning before saying a word to your boss. The following five steps will help you prepare the best case for a salary increase before you meet with your manager.

1. Get a good reason.

If you are going to ask your boss for a raise, make sure you have a good reason. "Needing the money" doesn't count. Your company doesn't care if you are drowning in student loans, can't make your rent, or have to finance a wedding this year. Like everything else in the business world, the money you get paid is all about the value you add to the company.

2. Assess your contributions.

Prepare a list of contributions that have had a positive impact on the bottom line. As you're putting together your case, be hard on yourself. Look at the situation from your company's point of view. Have you honestly acquired such valuable skills, performed at such a high level, and exceeded expectations to such a degree that your company should shell out more assets to keep you?

3. Look at the big picture.

Check out compensation surveys like the National Compensation Survey by the U.S. Department of Labor (www.bls.gov/ncs) or web sites like Salary.com to determine how your salary stacks up to what other local employees in your position are making. Don't forget to take into account other financial incentives you may receive from your company, including bonuses, stock options, insurance packages, 401(k) contributions and tuition reimbursement.

4. Take the economic temperature.

You have to evaluate your request in the context of the current economic conditions, your company's financial status, and internal policies regarding raises. In today's business climate, many companies are foregoing merit increases or are only issuing them at a certain time of year. Some organizations also have fixed salary ranges, or grades, that prevent managers from increasing compensation beyond the amount pre-determined by your level or title. Still others place the authority to decide matters of compensation in the hands of a few individuals -- and your boss may not be one of them. Find out about such things ahead of time.

5. Consider the timing.

When is a good time to ask for a raise? Coming off a strong performance review in which your boss acknowledged your accomplishments is a good bet, because he will probably be expecting you to broach the subject of money. If you have just taken on a new role or your management has raised the bar for your performance, it is perfectly legitimate to ask for an appointment to discuss "compensation commensurate with new responsibilities."

Once your preparation is done, you'll have more confidence for approaching your boss and sealing the deal.

Getting a Raise: The Negotiation

Once you've done some careful planning about the raise you want and why, you're ready to focus on the actual meeting with your boss.

Start by scheduling a meeting time when your boss' stress level and workload are manageable. An informal setting like lunch often works because it allows you and your manager to relate on a more personal level. Make sure to articulate in advance, however, what the meeting is about, so your boss can prepare. Also bring notes or materials that support your accomplishments, in case your boss wants to discuss them during the meeting.

The next five steps will help you with the actual discussion of your raise.

1. Set a goal and practice.

Before you meet face to face, decide on a number that you'd be satisfied with and prepare how you'll respond if you don't get it. You also may want to practice your tone on a family member or friend prior to the meeting, because there is a fine line separating the assertive/sincere and boastful/arrogant approaches.

2. Stay positive.

Now, on to the actual discussion. If you're underpaid and you know it, don't complain. Instead, remain calm, positive and professional. Tell your boss about what you enjoy working at the company. Talk about your performance in a factual manner and provide concrete examples of how you add value to the organization. When it comes time to pop the question, use the word "compensation" rather than "raise" or "money." In the event that your boss declines your raise, don't close your ears to the rest of the discussion. She may be willing to offer you other perks instead, like extra vacation time, flexible hours, or a nice dinner with your significant other on the company.

3. Negotiate.

Despite your best efforts, you may not get the compensation you've earned. Sometimes the only way to get a serious pay increase is to switch to a new position. Or, you could ask your boss what you need to do to receive an increase, and if it's possible to revisit the issue in a few months. Do not give an ultimatum, unless you are prepared to walk out the door. Even if you have another job offer in hand that pays more, you cannot assume that your manager will make a counteroffer.

4. Escalate the matter.

Your boss may tell you that she would like to give you a raise, but her hands are tied. If this is the case, ask her if the two of you can schedule a meeting with the higher-up responsible for the decision. Do not go over her head without her knowledge, and make sure she is kept on the loop on all matters concerning your compensation.

5. Follow up.

Discussing a raise may be difficult for your boss, too. He may tell you what you want to hear simply to get you out of his office. Make sure that you follow up appropriately on any verbal promises he makes, and if possible, secure an effective date for your increase. You can also summarize your agreements via email after the meeting. Remember the issue is not closed until you see the change on your paycheck.

5 Steps to Negotiating a Raise

Many employers are looking at their budgets and payrolls. So now may be a good time to hit up your boss for a raise. But summoning the courage to ask for more money can be tough -- especially if this will be the first time you've ever done it.

We're not talking about a token cost-of-living increase to keep your buying power up with inflation -- in 2008, inflation is expected to be 2.5%. That's not a raise. Rather, we're talking about a reward for your performance and contribution to the company that goes beyond expectations.

If you want a real raise -- a raise you deserve -- you need to ask for it. It probably won't fall in your lap. But with the right timing and preparation, you'll feel less fear and more confidence in making your request, and you'll have nothing to lose by asking. Just remember: Nothing ventured, nothing gained. Here's how to plan your pitch and get the pay you deserve.

Prepare and Make Your Pitch

1. Make a list of your specific accomplishments. Think you deserve more money? Be prepared to prove it. You need to show your boss the value you add to the team and point out specific instances you went above and beyond the call of duty.

Ideally, you should keep a personal log of significant contributions you made to your job from day one. If you haven't, start now. For example, note how you saved the company money or boosted sales, how you decreased hassle or stress on a project, and how you showed leadership under pressure. Use as many details as possible, such as numbers and facts. You'll want to take five to seven of your most recent or biggest-impact contributions and present them in a bulleted list.

If your job description has changed over the past year, or you've taken on added responsibilities, include those with your list of accomplishments. If you've recently completed training, received credentials or obtained an advanced degree that will benefit your employer, make sure to point that out as well. To drive home your case, you might want to make copies of any e-mails, memos or notes you've received from higher-ups, clients or colleagues that praise your performance, advises Teena Rose, president of Resume to Referral, a resume writing service provider.

Remember: your pay raise is based on your contribution to the company. Do not bring your personal financial situation into the discussion at all -- your boss doesn't care that your rent has gone up, you've got a wedding to pay for or you're expecting a new baby. When handing out raises, he or she only cares about the bottom line of the company. You should only ask for a raise if you feel you truly deserve it -- not because you need it.

2. Find out how your salary compares. You'll need to tell your boss exactly how much you'd like to get paid. When you know what others in your field are paid and what your position is worth, you can use that figure as a starting point for negotiations. Use our salary comparison calculator to find median salary information for jobs in your particular metro area.

3. Consider negotiating benefits and perks. A raise doesn't have to come in dollar signs. So before entering negotiations, think of other areas you are willing to negotiate such as vacation time, flexible work hours, stock options or tuition reimbursement. You might also consider bargaining for the right to telecommute, a more prestigious title or a week at a professional conference in Hawaii, suggests career coach Marty Nemko.

If the benefits and perks are as important or more important to you than money, you can include them in the forefront of your pitch. But if you prefer the dough, keep a couple of possible perks in your back pocket just in case your boss says "no" to a monetary raise (see below). They'll give you something else to bargain with if negotiations stall.

4. Time your pitch right. If your annual performance review isn't any time soon, approach your boss after you've done well on a project or taken on extra responsibilities. This will make your case much easier to present because your boss already will have a positive taste in his or her mouth. You don't want to allow him or her time to forget what an asset you are.

5. Broach the topic professionally. Set up a meeting with your boss and approach the subject like two parties trying to reach a compromise. Come with your list of accomplishments neatly typed for your boss to reference and your salary request printed at the top.

When making your case, don't compare yourself to co-workers -- stick to the field in general. And don't be cocky or greedy. If you've only been at your entry-level job for a year or two, expecting a hefty bonus, substantial raise or prestigious promotion is probably unrealistic unless you really, truly outdid yourself. Going into the negotiations with a sense of entitlement may actually hurt your chances.

Oh, and don't threaten to quit unless you really mean it. If you give your boss an ultimatum -- "Give me a raise or else" -- you just may find that "or else" is your only option.

If Your Boss Says "No"

There are a number of reasons your boss may turn down your request, but if it's because there simply isn't enough money available, shift gears. "Suggest an upgrade in your position," says Nemko. "It's easier for your employer to rationalize a higher salary if your job description is changed to include higher-level work." You could also ask to reopen negotiations in a few months.

Ask your boss candidly what it'll take for you to get a raise by that time -- and then do it. This shows your boss you truly are interested in increasing your value to the company and will give you a specific accomplishment to quantify when you reopen negotiations.

Boss still turning you down flat? Simply say, "I understand your position," and leave the room. "An ambiguous response is often more effective than an aggressive one because it leaves your boss wondering what you'll do next," says Nemko.

Indeed, you have some thinking to do. "If they consistently say no, and you are consistently performing well, it may be time for you to start looking for a company that is willing to pay you what you deserve," says Ross MacPherson, founder of Career Quest, a job coaching firm. See "Moving on Up" to learn more about making the decision to stay or go -- and how to look for a new job while on the job.