Most employees would love to see more money in their paychecks. Who couldn’t use more cash for retirement savings, a college fund or to pay down debt? (Because that’s what you would use the extra pay for, yes?)
Turns out, there’s a move that results in a raise for two-thirds of the workers who try it. The big secret: You have to ask.
According to a recent CareerBuilder salary survey, 66% of employees who asked for a raise got one. That applies to men and women equally.
The problem: More than half of workers have never asked for a raise. (And ladies are less likely to have asked for a raise than men—38% vs. 49%.) “People are usually dreadful at it,” says Marie McIntyre, Ph.D., author of Secrets to Winning at Office Politics. “A lot of people are uncomfortable talking about money."
Here’s what you should know about successfully negotiating for a higher salary:
Do pay attention to timing. Did you just finish a large, successful project? Set up a meeting with your boss. “You want to go in to ask for a raise when the sun is shining on both you and your organization,” McIntyre says. “If sales are sliding, or if there are starting to be some workforce reductions, that’s usually a clue that it’s not a great time.”
Do quantify your worth. Asking for a raise shouldn’t be about your large family or tight mortgage payments, but rather the value you’re adding to the company on a daily basis. If you’re in sales, it’s easy to show how you’ve contributed. But non-sales employees can also make a clear argument. “Quantifying time-saving or cost-saving measures can help to make a persuasive case for a raise,” says Cheryl Palmer, a career coach in the Washington, D.C. area. “And improving customer service can lead to client retention as well as acquisition. When employees are able to show that they brought in hundreds of thousands of dollars in new business or retained business that could have gone to a competitor, a salary increase of a few thousand dollars is justifiable and reasonable.”
Don’t ask for more than your position warrants. Be sure you understand your value in the market by reviewing salary comparison sites (such as Salary.com) and canvassing professional associations for salary information. “If you are already making the top range of the national scale for your role and industry, then asking for more money will not be successful,” says Laura Lee Rose, a business and career management coach in Raleigh, NC.
Do request more money if you are going above and beyond. “If you give 100% and are paid 100%--what you were promised—you have no grounds for asking for a raise,” says Bruce Hurwitz, an executive recruiter and author of Success! As Employee or Entrepreneur. “But if you have given 120%, if your results have surpassed expectations, that is what you focus on because that is why you deserve the raise.”
Don’t wait until your annual review. “By the time someone sits down with you to talk about your performance, those raise decisions may have already been made,” McIntyre says. “The better time is six to eight weeks before you’re likely to have your review.”
Do practice asking. Asking for more money or a promotion takes confidence, and confidence takes practice. But how do you practice asking your boss for a raise? “One can acquire this skill by going to farmer’s markets, flea markets, yard sales, and even department stores and dickering the price of objects for purchase,” says Daria Brezinski, Ph.D., a psychologist and professor who teaches entrepreneurs and career professionals. “This gives my students and clients experience and confidence, leaning how to evaluate the environment, asking, getting turned down and going on to the next dealer.”
Do come in with another offer—if you’re willing to go. For the most negotiating power, get an offer from another department or company that you would be willing to accept. “Tell your boss that you have received the offer, that it is attractive, and that you would prefer not to leave,” says Roy Cohen, a career counselor and executive coach in New York City. “What can he or she do? It is far cheaper to give you a raise than to recruit and train a new candidate.” There’s a risk that your boss will say “Goodbye and good luck,” so this approach is best for workers who really are considering moving elsewhere.
Don’t make it an ultimatum. “You may get the raise, but the opportunity cost could be steep if you jeopardize any or all of the goodwill you have accumulated,” Cohen says. “It may also raise the bar for measuring your performance that will be virtually impossible to achieve.” The better bet: Express gratitude, highlight your key accomplishments and contributions, and establish that your boss agrees with you. Then, tell your boss what you want.
Do consider alternatives to a pay bump. “In a lot of organizations, there isn’t money to be gotten as a raise,” says Lawrence Schwimmer, author of How to Get a Raise Without Getting Fired. “But you could ask for a company parking spot or some additional time off.” Another option is a one-time performance bonus, which is cheaper for your company because it doesn’t up your pay permanently.
Don’t stop at “No.” If your boss turns you down, don’t just skulk back to your desk. “You can say, ‘I understand that this isn’t the best time, but would it be reasonable for us to have this conversation again in six or nine months?’” McIntyre says. “You set a specific time to go back, which means you’re no longer in the position of ‘Should I bring it up?’”
