How to Ask for a Raise

Here's a reprint of an article I originally wrote for a national magazine.

Wonder why you didn’t get that raise you deserve? The reason may be as simple as the old saying “You have not because you ask not.”

Employers don’t automatically hand out raises these days, says David Lorenzo, a career adviser and corporate coach based in New York. “Remember that most businesses try to obtain services as inexpensively as possible. This includes labor. Chances are good that you will only receive more if you ask for it.”

So before that gut-wrenching moment when you enter your boss’s office, consider these tips:

• Do your homework. To find out how much your position is worth, visit www.salary.com for statistics on average incomes for specific jobs in your area. If your pay is well below average, you’re a great candidate for a raise.

• Pick the right time. “Timing is everything in business,” says Lorenzo, author of Career Intensity: Business Strategy for Workplace Warriors and Entrepreneurs. If the company and industry are doing poorly, it may not be the best time to ask for more money. But if business is booming, especially if you’ve played a key role in the company’s success, make your move. Special opportunities can provide a natural springboard for a raise: after you’ve received an award, saved significant money for the firm, or agreed to take on additional responsibility. Finally, consider the corporate calendar; you may get better results if you ask while the next year’s budget is being developed.

• List your accomplishments. The bottom line is creating value for your company. “Talk about your value in financial terms. There is almost always a way for a company to reward a star performer,” says Lorenzo, noting that the opposite is true as well. “Examine your performance as it compares to your peers within your organization. If you are not near the top of the list, you probably do not have a viable argument for seeking an increase.”

• Rehearse. Put both your salary research and accomplishments on paper. These will make it easier for your boss to justify your request to superiors. In addition, practice your presentation aloud until it is smooth and professional. Remember, you are selling yourself, and the more you rehearse, the more confident you’ll be.

• Prepare for all reactions. If your employer says “yes,” express your thanks. If the answer depends on the approval of others, express appreciation for your boss’s support in the matter. If the answer is “no,” you might want to suggest other means of compensation, such as more vacation days, flexible hours and the option to telecommute, or ask to reopen negotiations in a few months.

• Consider other options. If a raise is denied and you’re underpaid for your contribution, it may be time to update your resume and explore other job opportunities.

When you do receive that raise, however, don’t rest on your laurels. Prove to your boss and your company that they made the right decision by staying professional, helping the company financially and creating value. Such initiatives will pay off—and help your career—toward a richer tomorrow.

For more on making the most of your career, check out these posts:

• Six Ways to Invest in Your Career

• Five Keys to Increasing Your Pay

• How to Hunt for a Job Without Letting Your Current Employer Know You're Doing So

Comments

[swiehn]

What if you are the only one in the company doing your job and it is a office job. I work for a car dealership in the office. Of course I do not make them money since I do not sell cars or work on them in service. So how would you go about getting a raise?

[FMF]

Swiehm --

The same way. You need to build a case for why you deserve more. Are people in your same position elsewhere making more? Are you delivering added value that others aren't? Are you going above and beyond in helping the business do well? If so, document these and talk to your boss.

On the other hand, if you aren't doing any of these (or none of them applies to you), then you probably don't deserve a raise and are unlikely to get one.

[Lauren]

swiehn,

I am a personal assistant for a psychiatrist. I work out of his basement and do work for his research facility. I recently got a 33% raise (wow!) by just asking at the right time in the right way. I waited until I'd hit the year mark of working there, and then I waited for my boss to be in a particularly jovial mood. Then I said how much I've enjoyed working for him for the past year and how I feel that I've contributed a lot and gone above what either of us had planned when I was given the job. And voila! Large raise. Sometimes being one of the only employees helps.

[Colin]

List Your Accomplishments...

This is something I'd never tried before, but I've been using it in my current internship, with excellent results. Its helped make more concrete how I've been productive during my first few weeks, where its really more of a learning process than actual "work". Its also going to simplify my boss's life by making the performance evaluation piece easier.

Thanks for the tip!

[Swiehn]

So FMF you are saying that if I'm in a job that does not give me any room to grow or help improve the business's bottom line that I don't deserve any type of raise. To me that is saying anyone in a job that does the work that can't help the business make money or grow. Or that you have done everything you can to take on more responsibility. You should stay at what ever you are making for the rest of your job life. Again I will say not all of us white collar workers work for a big company and have the ability to take on "projects" or do more than their job description.

[FMF]

Swiehn --

What I'm saying is that if you don't have a good reason for your raise and you're already at the going rate for your position, you'll likely only get a cost-of-living bump.

Like it or not, most entities (businesses, non-profits, schools, etc.) are geared to reward performance. If you perform and are valuable to the organization, then you're compensated accordingly (and if not, you're ripe to ask for a raise.) But if you're not very valuable to the organization and there are a ton of outside people that could do your job in a heartbeat, then you probably don't deserve and won't get a raise. It's simple supply and demand.

An alternative for you: look for a job where you can contribute more and get rewarded accordingly. Your career is up to you to manage and there's nothing that says you have to stay in a dead-end job with no upside.

[Swiehn]

I'm sorry I did forget to let you know I am working for a one owner car dealership (new and used) and the owner does not give cost of living raises. The other office worker in the office with me has worked about 10 years and hasn't had a raise in at least 3 years.

[FMF]

Swiehn --

Sounds like you have a choice between being satisfied with what you're earning now or looking elsewhere for employment.

[Bobbi]

I actually work for a great company and love my job. And I recently got a raise to boot. I usually get a bonus around Christmas but I would love to trade the bonus in for more time off throughout the coming year, any idea how to ask for that? :)