Negotiate a Raise
October 11th, 2009
When a slap on the back just isn't enough
If you think you've been going above and beyond at work--and think your salary should do the same--it may be time to let your boss know how you feel. Easier said than done, of course. Knowing how and when to broach the subject of compensation
is something of an art.Some people would rather walk across white-hot coals than make demands on their employer. Others relish conflict, and must be restrained from proclaiming their vast self-worth and threatening to quit if their demands are not met. Neither extreme is likely to result in better pay. Whether you're a shrinking violet or the cheeky type, the following steps will help you steer a middle course and construct a winning strategy.
Warning! The following concepts may be totally unrelated:
Research salaries in
your field
Before deciding how big a raise to request, you need to find out what other people earn for performing similar functions. In order to replace you, your boss is going to have pay more or less the going rate, so you can use this as a benchmark. Of course, you cannot simply calculate the average salary of people in your profession, then ask for this amount. You must consider many other factors, so merely think of this sum as a starting point.
Where should you conduct your research? You could consider asking colleagues at work how much they're earning. However, such matters should be handled with discretion. You'll probably find it easier to consult with friends and acquaintances who have jobs similar to yours.
In addition, you should do some hard research either on the Internet or at the library. The Bureau of Labor Statistics publishes a Web site (http://stats.bls.gov/ocshome.htm) that offers a number of research tools that focus specifically on salaries. The Bureau also publishes the Occupational Outlook Handbook, available in most libraries. This annual publication gives detailed salary information organized by industry, as does the "American Salaries and Wages Survey," edited by Helen Fisher. To find out how salaries break down by specific region, try the Economic Research Institute's "Geographic Reference Report."
If you find your salary is below the mean, don't immediately go marching into your boss's full of righteous indignation. By the same token, don't rule out a raise just because you're already beating the industry average. You still need to consider other factors.
Assess your own job performance
If you want a raise, you need to prove you're worth the extra money. That means you must take a long, hard and honest look at what you do for the company. And remember, working overtime isn't enough--you need actually to accomplish something during those extra hours.
Rather than thinking about how hard you're working, consider what you're actually getting done. And don't neglect the less obvious ways you're "adding value" to the company. Consider the following:
Quantity: Do you produce more widgets than you're expected to? More than your fellow employees? More than the industry average?
Quality: Are your widgets better than the average widget? If so, how does this benefit the company? Does it attract more clients? Or save company resources (i.e. supervisory time)?
Additional tasks: The workplace is dynamic, and we're often expected to perform tasks other than those we were originally hired to do. Keep track of all the various tasks you perform at work--your employer may not realize you're the one picking up the slack.
Additional responsibilities: Have you taken on any supervisory functions for which you were not originally hired? List projects you have you taken official or unofficial charge of, ensuring they're done well and/or on time.
Conserving company resources: Ask yourself whether you've streamlined production--and production costs--and/or steered your employer clear of unnecessary expenditures.
Evaluate your employer's economic health
Let's say you're receiving a below-average salary for an above-average performance. You deserve to get a raise, right?
Sure, you deserve it, but unfortunately, there's a third thing to consider: your employer's financial health. If times are good, you're right to put on the pressure. But if pockets are empty, no one's going to pull out a rabbit just for you. Ask yourself the following questions:
Determine how much to ask for
Once you've considered prevailing salaries, your own job performance, and your employer's financial health, you're ready to determine a fair salary. Again, there's no formula, but an acceptable range should become clear in your mind.
Your first step is to find out as much as you can about your company's compensation policies; working within the current salary plan is your best bet for securing a raise. You'll need to answer some basic questions:
Build a case
OK, you know how much you want. Now it's just a matter of organizing all your research into a coherent argument. Imagine that you're a lawyer, and your employer is the judge and jury. As you build your case, consider the following:
Research salary levels: If your salary is below the industry average, provide your boss with evidence (see Step 1).
List accomplishments: Let your employer know all the ways you've gone above and beyond the call of duty (see Step 2).
Provide facts and figures: Wherever possible, provide numbers or other evidence to back up your claims. Don't say, "I'm really tired when I get home, so I know I'm working hard." Rather, say, "I'm producing 47.2 widgets a day," or "I talked operations out of a useless copy machine that would have cost $5,000."
Point out special skills: Let your employer know about any special skills your job requires, especially if you've acquired them since being hired, either in school or on the job.
Make proposals for the future: Show you're serious about your future with the company by setting specific work goals.
Be firm but flexible
When you finally sit down with your boss to talk numbers, it's critical that you adopt the right tone. You don't want to sound like you're begging--after all, you're theoretically asking for only what you deserve. On the other hand, you should not be confrontational. No one likes to be bullied, employers included. Consider the following rules of thumb:
Be an educator: During the first round of negotiations, think of yourself as neither enemy nor supplicant, but educator. Simply assume your boss isn't aware how valuable you are, or what salaries people like you command. By avoiding confrontation, you'll keep the channels of communication open, even if your request is turned down.
Don't issue threats: Should you tell your boss you have another job offer, or threaten to quite if your demands are not met? The short answer: no. Employers want workers who like their job and want to stay. If you're threatening to leave, they might show you to the door.
If your overtures are turned down multiple times and you're totally prepared to pull up stakes, then perhaps you should consider a tactfully worded ultimatum. Just remember: this is a last resort.
Make the most of a "No"
If you do your homework, muster your courage, time your request to a tee...and then receive a resounding "No," have you totally wasted your time? Not at all. You've planted the idea of a raise in your boss's mind, and it may bear fruit at a later date. If nothing else, you've made your employer aware of the great job you've been doing.
You can take some concrete steps to make the most of a "No":
Find out why: Ask your boss why your request has been turned down. Is it too soon for a raise? Is it a matter of your performance? Is money tight? This knowledge will help you strategize in the future.
Set standards: Ask your boss what you can do to increase your chances for a raise in the future. It's not a binding contract, but you'll know what you need to do to win a higher paycheck.
Agree to further talks: If your boss is receptive to your request but unwilling to make a commitment right away, propose a time in the future--perhaps in a month or two--when you can discuss the matter further. This shows you're serious without putting either of you on the spot.
Offer alternative benefits package: If your boss likes the job you're doing but is unwilling to raise your base salary, consider other kinds of benefits options, including: flex time; increased holiday time; telecommuting; and productivity bonuses.
Be persistent. Patience pays off, mostly when you continue working to convince your boss that you deserve a higher salary. Most raises aren't won after one conversation; it often takes an organized, ongoing effort.
Remember, you might not get exactly what you want, but you can still make the most of the situation. And if you do get the raise? Don't spend it all in one place!
- What you're paid
- What you deserve
- What you think you deserve
- What your boss thinks you deserve
- What your boss is able to pay
Where should you conduct your research? You could consider asking colleagues at work how much they're earning. However, such matters should be handled with discretion. You'll probably find it easier to consult with friends and acquaintances who have jobs similar to yours.
In addition, you should do some hard research either on the Internet or at the library. The Bureau of Labor Statistics publishes a Web site (http://stats.bls.gov/ocshome.htm) that offers a number of research tools that focus specifically on salaries. The Bureau also publishes the Occupational Outlook Handbook, available in most libraries. This annual publication gives detailed salary information organized by industry, as does the "American Salaries and Wages Survey," edited by Helen Fisher. To find out how salaries break down by specific region, try the Economic Research Institute's "Geographic Reference Report."
If you find your salary is below the mean, don't immediately go marching into your boss's full of righteous indignation. By the same token, don't rule out a raise just because you're already beating the industry average. You still need to consider other factors.
Quantity: Do you produce more widgets than you're expected to? More than your fellow employees? More than the industry average?
Quality: Are your widgets better than the average widget? If so, how does this benefit the company? Does it attract more clients? Or save company resources (i.e. supervisory time)?
Additional tasks: The workplace is dynamic, and we're often expected to perform tasks other than those we were originally hired to do. Keep track of all the various tasks you perform at work--your employer may not realize you're the one picking up the slack.
Additional responsibilities: Have you taken on any supervisory functions for which you were not originally hired? List projects you have you taken official or unofficial charge of, ensuring they're done well and/or on time.
- Is business expanding? Contracting? Staying more or less the same?
- Is your employer hiring new workers or laying off old ones?
- Do you work for a wealthy corporation with a history of high profitability? A struggling start-up? A non-profit agency?
- What are the future prospects of your employer, and the industry as a whole?
- Does your company have a standard range for pay raises? What's the maximum?
- When are raises given?
- Who has the final approval over raise requests?
OK, you know how much you want. Now it's just a matter of organizing all your research into a coherent argument. Imagine that you're a lawyer, and your employer is the judge and jury. As you build your case, consider the following:
Research salary levels: If your salary is below the industry average, provide your boss with evidence (see Step 1).
List accomplishments: Let your employer know all the ways you've gone above and beyond the call of duty (see Step 2).
Provide facts and figures: Wherever possible, provide numbers or other evidence to back up your claims. Don't say, "I'm really tired when I get home, so I know I'm working hard." Rather, say, "I'm producing 47.2 widgets a day," or "I talked operations out of a useless copy machine that would have cost $5,000."
Point out special skills: Let your employer know about any special skills your job requires, especially if you've acquired them since being hired, either in school or on the job.
Make proposals for the future: Show you're serious about your future with the company by setting specific work goals.
If your overtures are turned down multiple times and you're totally prepared to pull up stakes, then perhaps you should consider a tactfully worded ultimatum. Just remember: this is a last resort.
Tags: Add new tag, Additional responsibilities, Additional tasks, following questions, management structure., performing similar functions, Quantity, starting point., thinks you deserve, winning strategy