Five Steps to Negotiating a Raise

Your career is your most valuable financial asset and managing it correctly can earn you millions of dollars in extra income throughout your lifetime. One way to actively manage it is to ask for a raise throughout your career -- when it's appropriate. I've written on this topic previously in these posts:

• When to Ask for a Raise

• 5 Steps to Getting that Raise

• Want a Pay Raise Next Year? Start at It Now

• Comments: 5 Steps to Getting that Raise; Inequity

Here's a piece from Kiplinger's that has some great thoughts on this subject at the end of the article where it lists five steps to negotiating a raise. Their thoughts:

1. Make a specific list of your accomplishments.

2. Find out how your salary compares.

3. Consider negotiating benefits and perks, such as vacation time, flexible work hours, stock options or tuition reimbursement.

4. Time your pitch right.

5. Broach the topic professionally.

As a manager of people, I can tell you that extra money can almost always be found for people who are great performers and are earning at or below average wages. As long as the person approaches their boss with the right tone, this sort of request almost always gets some sort of results (maybe not what you wanted, but it will get you more than you would have gotten otherwise).

Now if you're an average performer or worse, you don't have much basis to ask for a raise -- even if you're below average in pay. In those cases, I'd suggest you work on increasing your value to the company, then approach your boss for a raise.

Comments

[Dave Lorenzo]

Amen.

Spot on, FMF.

[Marshe']

The article entitled " Five steps to negotiating a raise" was wonderful.I am a recent college graduate working for a fortune 500 company. I know that I am underpaid and have only been working for the company for 6 months. Last month, going to work early and staying late payed off big.I recieved company recognition for haveing the top sales team for the Nashville company and recieved the professionalism reward. The company is ramping up and the attention of the CEO and Regional manager has been directed at me. They know my name well. I really want to ask for a pay raise, because i know that my financial worth to the company far exceeds what i am paid. When do you suggest is a good pt. to approach your superiors with a presentation to recieve a raise?

CP

[FMF]

CP --

When you can support with data/performance that you deserve one.

[AHIMBISIBWE CHARLES]

I am very glad to have come across this website. I have been underpayed for the last one year. my departmental boss and i share similar qualifications. But through your advice, i now look forward to get bigger.