By Jason Richmond, CEO and Chief Culture Officer at Ideal Outcomes, Inc.
If you think you’re worthy of a pay raise but hesitant to ask for one—you’re not alone. A survey by B2B Reviews found that 80% of workers feel entitled to an increase, but only 60% intend to ask for one.
What’s holding them back? The top four reasons given were being unsure how to approach (32%), fear of rejection (28%), concern over job security (22%), and fear it will damage relationships with management (20%). Only 12% of respondents said they were satisfied with their current pay.
What would make employees more likely to request a pay bump? Nearly three in four said they’d do so if they discovered coworkers earned more, according to the report from B2B Reviews which publishes buyers’ guides, user reviews, and in-depth editorial reviews for business-to-business software and services.
Thinking about asking for a raise can feel a bit like preparing for a performance. There’s a jangle of nerves, tons of preparation (and even rehearsal), and hopefully in the end a standing ovation which, in this case, equates to the extra digits on your paycheck.
So what can you do to get the applause you deserve?
Calculate COLA
A straightforward way to approach the issue—never mind the merits of a raise based on your performance—is to bring up the topic of a cost-of-living adjustment (COLA). We all know how much essentials of life such as food, electricity, and gas have increased—so that’s a good starting point and a meaningful rationale. It’s very reasonable to expect employers to factor in those increases when considering your request.
Thoroughly Research
Get your ducks in a row before asking for a raise. Step one is to find out what a competitive salary is for the kind of job you perform. Websites like Glassdoor and PayScale provide useful information for comparative purposes and based on location. Major cities like New York and Los Angeles will obviously have higher rates than smaller cities in the Midwest. It’s important to know what other individuals in similar positions earn.
Work Out Your Worth
What value have you added to the company that validates your request for a raise? You must have done something! Don’t expect a raise without having contributed anything worthwhile. Put together a presentation that illustrates your accomplishments and how you believe they have specifically benefited the company. It’s particularly helpful if you can attribute a dollar amount to your contribution. Present a document containing your value points to help drive the conversation.
Pick the Time and Place
When should you make your pitch for a pay increase? Obviously not in the elevator or at the water cooler. You need to schedule a formal meeting with your boss and give advance notice. It’s respectful, professional, demonstrates the importance of the meeting, and gives your boss time to be prepared. Asking for a raise earlier in the year is a good idea so you can receive feedback on anything you need to improve. And if you wait until the end of the year, your manager may not have the funding to meet your request.
Rehearse Before Taking the Stage
You can’t just ask for a raise without presenting a good case for it. And that means taking time to rehearse what you’re going to say, how you’re going to say it, and what supporting documentation you will hand over. The more you rehearse your main points—in front of a mirror or a trusted friend—the more polished and confident you’ll appear when it matters the most.
Be Specific
Don’t simply say it’s about time you were paid more! Be specific about what you want whether it’s a certain percentage or a fixed amount. Being clear cuts through any ambiguity and helps anchor the discussion. This is where your earlier research pays off, allowing you to align your request with industry standards. Consider other options to a straightforward pay increase. Maybe there are perks like stock options, parental leave or flexible working hours that can help fulfill your need for extra recognition.
Don’t Take “No” for an Answer?
“Employees should assume that a ‘no’ is really a ‘not right now,’” says Robin Ducot, chief technology officer at SurveyMonkey. “With that in mind, the real question is: What do I need to do to make sure that I am eligible for a fair raise during the next review cycle?”
Express your appreciation for the consideration, your continued enthusiasm for your job, and set a timeline for review. But if your manager absolutely rejects your request, despite your exceptional performance and without sound reasons, you may have to consider moving elsewhere where your talents and work ethic will be appreciated. Don’t, however, threaten to quit. That’s not a good negotiating position.
The Path to More Money
The path to requesting a raise is marked by preparation, clear communication, and strategic timing. The journey involves more than simply asking; it requires a deep understanding of your own value, an appreciation of market norms, and the ability to articulate your contributions compellingly. While the prospect of initiating this conversation can be daunting, it is an essential step towards acknowledging your worth and boosting your professional development. Whether the answer is yes or no, each request is a stepping stone to greater confidence and negotiation prowess in your career.