Would you like a pay raise next year? I thought so. That's why I wanted to share this piece from MSNBC about how now is the time to start working on getting it. Here's the summary:
Most workers can expect pay raises of about 3.5 percent next year — the same as this year, according to recent employer surveys. If you think you deserve more than that, now may be a good time to approach your boss.
“A lot of companies are in the process of putting their budgets together,” said John A. Challenger, chief executive of the Challenger, Gray & Christmas Inc. outplacement firm in Chicago. “It won’t hurt to get your name in there now.”
However, it won't be a simple "sell":
But Challenger and other experts warn that appeals that might have worked in the past won’t do so anymore. You can’t walk into your boss’ office and argue that you need more pay because you’ve just gotten married or had a child, or because you’ve worked for the company for five years, or because the prices of everything are going up.
Increasingly, you’ve got to try to prove that you’re worth more money because you’re making a significant contribution to the company’s performance.
Steven E. Gross, leader of the employee rewards business for Mercer Human Resource Consulting, based in New York, said most companies are trying to hold down spending, and that means they’re more selective about salary increases. “They want to reward their highest performers, and there are basically three ways to do that: salary increases, variable compensation such as bonuses and special awards, and promotions,” he said.
Here are a couple tips on how to go about getting the raise:
The best time to approach the boss is after you’ve successfully completed a major project or done something that’s drawn attention or praise. “That way you can point to the impact you’re making on the department or on the company’s bottom line,” he said.
Gross suggests that to qualify for any or all of those options, a worker needs to develop his or her case over the course of a year. “Sit down in the spring with your manager and have a conversation around, “What are your expectations for my job?” and “What would exceed those expectations?” he advises. “You want to make sure you agree on measures of success.”
And if you can't get more money, consider other options:
If money isn’t available, a good worker can sometimes negotiate better working conditions, Gross said. Perks could include more flexible work schedules, more vacation or company-paid training programs.
Finally, the piece gives a list of tips on getting a raise:
- Do your homework: Find out what workers who do similar jobs are earning.
- Check the calendar: Many companies plan raises in the eight to 10 weeks before the end of the fiscal year, so get your request in early.
- Plan your pitch: Practice with a friend, if necessary, before approaching your boss.
- Go for alternatives: Maybe you can get a year-end bonus, a higher commission rate.
- Time can be money, too: Seek a more flexible work schedule, some work-from-home days, more days off.
- Try, try again: If a raise isn’t granted, sit down with your boss early in the year and set goals that will lead to a raise next year.
- Look around: Maybe it’s time to dust off your resume and find a higher-paying job elsewhere.
For more thoughts on this topic, see 5 Steps to Getting that Raise.
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