Earlier this month, Microsoft CEO Satya Nadella said that women should trust “karma” instead of asking for pay raises. Nadella suggested that the “system” would reward their work. In the apology, Nadella said he was “completely wrong.”
Well Nadella got one thing right. He was completely wrong.
Why? Because the “system” is flawed. Most reward systems are based on treating people equally. However, equal isn’t always fair. If I’m one of the top performing employees and I receive one percent more in merit pay than an average performer, is that fair? If the system forces managers to rate everyone according to a bell curve and I suffer because of this, is that fair?
I learned from an early age that if you want a raise, you have to ask for it. I was eighteen years old and working as a file clerk in a law firm and I went to my boss and asked him for a $20 per week pay raise. He said yes.
Every employee must learn how to advocate for him or herself. In my book Suddenly in Charge, I dedicated an entire chapter to the topic of How to Ask for a Raise and Actually Get It. I think I’ll send Nadella a copy so he can give it to his female employees, now that he’s apologized!
Here are some tips from Suddenly in Charge on how to ask for a raise and actually get it.
Timing is everything. Here are situations where you should feel quite comfortable asking for more money.
- Bait and switch-The job is significantly more work than what was described when you were interviewing.
- Atlas in the workplace-The weight of the department is on your back, now that half the staff has been eliminated.
- Cashing in on promises-You accepted your current compensation under the premise that an adjustment would be made at a specific point in time. That time has passed.
- You hit a homerun-You just hit the project out of the park and the fans are cheering. Negotiate for better terms while you are still considered a superstar.
- Relocation blues-You've volunteered to move to the one office that no one wants to work in. You are in a great position to ask for more money, especially if the company doesn't have anyone else willing to go.
Preparation and planning is key
Know your worth. This is quite easy to do today because you can use online resources. Some of my favorites are sites like Payscale.com or Salary.com. However, like most things in life, you get what you pay for. These sites are free. Therefore, you have no idea how frequently the data is updated, nor can you perfectly match your job to the jobs in the database. The best you can hope for is a ballpark figure. Many associations conduct salary surveys with their members to keep the membership informed of current pay practices. The results are usually free for participants and those who are paid members. Or you could simply place a few calls to executive recruiters. Provide them with information about your job title and background, and ask them what other opportunities are out there for someone with your skills. Ask the recruiter what type of pay range someone with your experience should expect. Do not be surprised if he immediately tells you that you are being underpaid. Keep in mind that a recruiter's job is to get you to make a move to another company; if you stay where you are he won't receive a commission. You are less likely to leave your employer if you are feeling well compensated.
Know your value
There is a difference between worth and value. Suppose you are the only person who can manage a particular function for your organization and that you also possess a unique set of skills that are extremely hard to find. This makes you much more valuable than someone who is one manager in a sea of thousands of managers, all of who could easily be replaced tomorrow.
It's your job to remind your boss of the value you bring to the organization. Be prepared to explain what you have done for the company lately, and don't forget to do so using dollars and cents. Be specific as possible as in this case, more is more. Don't be shy. If you saved the company $100K because you negotiated a better contract than your predecessor then say so.
Plan for the conversation
Remember when you were a kid and you blurted things out just to get the conversation over with? Do not try this approach when asking for a raise, as most bosses do not like surprises. These kinds of conversations go better when you have a well thought-out plan. Consider the logistics. Is it better to meet off-site with your boss so there are few interruptions? Is there a better time of the year or day for you to have this kind of discussion? For example, if you work in retail, anytime between Thanksgiving and Christmas would be off limits for this type of conversation as the company requires all hands on deck to service customers during the Christmas season.
Ask for What You Deserve
Of course it would be great if you could double your salary, but is this appropriate given your responsibilities, performance and size of your company? If you've done your homework, you'll know exactly what you should be asking for. Don't let karma get in the way or your self esteem. Be confident and be sure to come back and let us know how it goes!
Roberta Chinsky Matuson is the President of Matuson Consulting and author of the newly released Talent Magnetism.
