Ask for a Raise

I've written a ton on how to ask for a raise because it's a great way to maximize your greatest asset (your career.) Someone who asks for raises and gets some of them can earn millions more than someone who doesn't throughout their career.

Suze Orman addressed this same issue recently. She looked at it from the perspective of women (many of whom simply don't take the initiative to ask for a raise), but the advice she gives really applies to all people. In particular, here's the bottom line:

Don't sit back and wait for your boss to miraculously give you a raise and promote you. It's great if you have such a wonderful boss, but it's also pretty rare. You need to step up and state your case.

It's pretty much the "you have not because you ask not" rule here. Of course you have to deserve the raise -- by being a strong contributor to your company -- but if that's not an issue, then you are certainly a candidate for a raise. And that extra increase can really add up. The difference between someone who averages 3% raises throughout their career and another person who averages 5% is $2.5 million! Get that up to 7% a year and you earn $4.4 million more!

Now see how it's worth the effort? ;-)

For more on this topic, see these links:

• Which is a Better Career Strategy: Staying with One Company Your Entire Career or Switching Companies Regularly?

• More Thoughts on Asking for a Raise

• Four Tips for Getting a Raise

Comments

[jon]

i wish these suggestions and tips would take into account the timing. would you still ask for a raise even though the company is in the midst of a big project in which both the boss and myself is involved? we are so busy right now and i feel that asking for a raise at this time sounds a little bit selfish. thoughts?

[FMF]

Jon --

Yes, timing certainly can make a difference. Here are some of my thoughts on the issue:

First of all, you have to be sure you deserve the raise -- that your current salary is below or near the market value for the position and you are a strong performer (and that strong performance can be documanted.)

If you meet the first criteria, now you have to consider the impact of timing. Here are the issues associated with it that I'd consider:

1. How long will the project last? If it's a month or so, I'd wait. If it's a two-year project, then I would not. You need to use your judgment.

2. How important is your role in the project and how important is the project to the company? If the answer to both of these is "very" and you think there's a good chance that the project will be a big financial benefit for the company, then I'd consider waiting (if the completion is not too far off.) You may be able to get a bigger raise by doing so -- coming on the tail of a very successful project.

3. Consider the boss's frame of mind. Is the project so overwhelming that one more issue will break the camel's back? If so, it will probably pay to wait.

In the end, you need to find a balance between your needs, the needs of the company, and the practical issues associated with timing. Every situation, person, company, etc. is different, so you'll need to use your best judgment before proceeding.

Good luck.

[Minimum Wage]

Nobody gets (meaningful) raises where I work. The pay range from top to bottom is 20 cents per hour.

My career is a pathetic "asset".