Raising the Bar: How to Ask for a Raise and Increase Your Chances of Getting It

We all hope that when the time comes, our managers will do the “right thing” and give us a raise (without our needing to ask for it).  In reality, however, this is often wishful thinking.  As such we need to proactively protect ourselves and take remuneration negotiations into our own hands.  While the conversation may still be difficult, below are ten steps to making it more palatable and productive: for both you and your manager.

Part 1: Before the conversation:

Tailor your approach - depending on how long you have worked with your manager, you should know his/her interests, needs and goals.  If you don’t, try talking to a trusted colleague who knows your manager better and get an understanding of what is likely to get the best response. Pitching your raise request in accordance with your manager’s needs increases the chances of a successful outcome.

Choose the right time – Contrary to popular belief, there is a good time to ask for more money. Most people wait to have the remuneration discussion at review time, when managers are typically: inundated with similar requests, restricted by end of year budgetary constraints, and focused on your “problem areas” in need of professional development.  Instead, initiate the conversation hot-on-the-heels of a clear and undeniable professional success (e.g. completing a project or exceeding a target). Choosing the appropriate time, gives your request legitimacy.

Make a list - Asking for a raise is about doing MORE than what is asked of you, it is about doing something EXTRA. Therefore, you should go to the meeting armed with a list of the ways in which you have personally added value and made a difference to the organization.  Include absolutely everything that you can think of and then prioritize them in order of weight to support your request.

Get the facts and figures – Gather evidence that supports your list of personal value-adds. Compile the results of the projects completed or measures you have implemented, emails evidencing praise from others in the organization, customer testimonials – whatever you need to demonstrate your value and contribution. Be informed on the salaries of comparable roles both in your organization and industry-wide.  This will assist you in tying the figure you request to a verifiable norm as opposed to a pie-in-the-sky figure.  Websites such as PayScale and GlassDoor may be helpful in establishing these market norms.

Practice makes perfect – Once you have done all of the background work, it’s time to practice! Try “playing it out” with a trusted friend or partner. If this doesn’t feel comfortable, you can record it on your phone or do it in front of the mirror. It is important to become comfortable with the words coming out of your mouth. Try to think about what your manager might say and practice responding to his/her hypothetical comments. Practice will make the actual conversation much more fluid, as the substance will flow more quickly in the face of anxiety.

Part 2: During the conversation

Resist your instincts (avoid complaints and ultimatums) – When you sense push back from your manager, you may be tempted to respond with threats of resignation, illicit knowledge of your colleagues’ pay and/or complaints regarding your (heavy) workload.  Avoid these impulses as they create an adversarial environment in which your manager will be defensive and far less likely to grant your request.  To avoid this, continue to build credibility in the conversation by tying your request back to the data you obtained and your list of value-adds. 

Stay calm and collaborate – Asking for a raise can be a highly emotional experience as remuneration is closely linked with your sense of self worth and self-esteem.  To prevent emotions from taking over, try to imagine that you and your manager are on the same team.  Try to come up with some mutually beneficial solutions with your manager and be responsive to any needs/issues that s/he raises. The deal you strike should be flexible and fluid, walking in with a list of demands is not helpful.

Pitch the raise as step towards creating a future – A raise is likely to result in renewed commitment to both your manager and the organization. Remind your manager of this fact. Use the conversation as a segue into your hopes and dreams for the future (specifically those that will benefit the organization and your manager) and create an action plan in which you are both invested.  

Preserve the relationship and be inquisitive - The point of having this conversation is to set yourself up for the future, not to take a step backwards. Accordingly, every move that you make in the negotiation should continue to build your credibility (even if your request is not granted). If you are rejected, ask your manager to spend some time explaining why and to expressly set out what is required of you in order to be eligible for the raise at a later time. Consider whether there is something that you need from your manager to be in a position where you are outperforming in your role (for example, a greater budget or additional staff).

Part 3: After the conversation

Be creative and have a back up plan - If your request is declined, make sure you have back up plan. In lieu of a raise, consider a package of options that are of low cost to the organization but high value to you.  For example, extra vacation time, stock options or more a flexible working arrangement. You may be able to “repackage” your request in terms of these alternate options.

By following these simple steps, you should be in a much better position to ask for that raise or to renegotiate the terms of your employment.  If, after going through the preparation, you don’t feel like you have a strong enough case, keep your notes and plan to revisit the issue when circumstances have changed. 

Occupy# - An Opportunity for Business

The Occupy# movement which is growing throughout our cities has implications that stretch beyond the obvious. This movement is not just about the unemployed and underemployed, but

about the concerns all Americans are having about the future of our country. It isn’t just about Wall Street and big-government decision making, but stretches to concerns about Main Street and organizational leadership.
Through these stressful times business owners and leaders are gaining the unique opportunity to stand out from that cynicism and negativity, and to come forward as a company that cares.

What Steps Can Business Leaders Take?

Executive compensation – I read a recent report from the Economic Policy Institute that said in 1965 the average CEO was paid 24x what the average employee received. In recent years that number has been as high as 300x that amount. This disparity is unacceptable to many.
While some would argue that talent retention requires competitive income, I would suggest that retention comes instead from a person’s respect for a company’s core qualities including its values, the products or services it provides, and its customer’s or clients. Financial compensation only becomes of primary importance when one or more of those core qualities are missing.
Rather than keeping up with the Jones’ in CEO compensation, reconsider what would be an acceptable income and make that change. As an added boost to your image, make the change public. Rather than hiding this scaling back, challenge other organizations to follow your lead.
If this idea strikes a cord with you, and you think that in a competitive marketplace that it is not possible, look for an up-coming article I am writing which elaborates on the subject.

Political contributions – Let’s face it, Google has made research nearly effortless. So while you may be focusing your online attention to SEO and social networking, some may be Googling you for different reasons. If you are making notable contributions to either party, or to lobbyist or other groups, be aware of the potential message this sends out. Your affiliations, once known, affect the perception of both your employees and your customers. What can you do? If you donate money or resources, consider doing it as a personal rather than a business contribution. Where possible, be open to addressing any controversy by putting the topic on the table for discussion and explain your point of view. Most importantly, be aware of the impact this may have on your image and act accordingly.

Flexibility and Understanding – Those same financial pressures are affecting both your employees bottom-line and that of your business. Sure you can’t give bonuses this year. But you can find creative ways to show you appreciate your staff and care about them. In lieu of bonuses perhaps allow an extra day off, a more flexible work schedule (holiday or year-round), even encourage them to organize an in-house secret-Santa to celebrate the holidays. These small efforts will pay long dividends as your team of employee’s feels you understand and care about them.

Creating a workforce that is happy, cohesive, and dedicated to the success of your business is the goal of any leader. Demonstrating you care about them and their concerns is just one important step. If your team is not exactly where you’d like them to be, we’d like to help you get there.