How To Ask For Raise The Right Way
Raises are a way of recognizing your increasing contribution to your company.
Many people fail to ask for a raise from their managers and bosses because they think it might be an outrageous request and sour the existing relationship.
In many cases, this is further from the truth.
Why is asking for a raise important?
When you ask for a raise, it reminds your manager of your work ethic and the value you bring to the company. Not only would this lead you to get raises, it can put you in consideration for promotions as well.
Raises are a way of recognizing your contribution to the company is higher than when your salary was initially established.
Your salary reflects what employers are willing to pay at fair value for your work.
It is not a gift or favour.
Asking for a raise shows you are confident in your ability and willing to perform well for the company for a long-term.
If your manager has been managing people for a while, he or she knows that people are eventually going to ask for raises.
Many would be more than happy to give you a raise if the budget and your performance is satisfactory. Many managers would rather you ask for a raise instead of you leaving the company.
Work with your company to get you compensated correctly. Your company is not your enemy.
If you want the company to succeed and you want to perform at an optimal level without any money worries, the best thing you can do for your company is ask for that raise.
1. Choose an ideal time to ask for a raise
Before you ask for that raise, I recommend you consider a few key factors that may affect your success. Some of these may be outside of your control but they do need your consideration to choose proper timing.
Company financial health: Is your company able to give you raises with its current financial conditions? Is your company laying off people?
Manager’s mood: Is your manager’s mood affected by workload and other challenges? It might be a good idea to gauge your manager's current mood before proceeding with asking for a raise.
Your performance: Are you performing well for your company? Have you gotten any praises about your work? How about achievements? Its much easier for your manager to give you a raise if you are a high performer at work.
2. Research salaries in the market
Before you ask for a raise, you should research whether your asking amount is comparable with market rates.
I am all about getting you paid, however, you need to consider whether the raise you are going to ask from your company is not outrageous or going to break their bank.
When you are researching, make sure you research under the same geographical area. Your market rate can be drastically different based on the location you work.
Research on these sites to know whether you are getting paid right:
Here are key things to consider before you ask. Ask yourself, if any of these things have changed since your last raise.
Years of experience
Key skills and software tools
TIme with company
Your achievements in the company
Education level and certifications
Living costs
It is generally acceptable to ask for a 10-20% raise every year from your company.
3. Schedule the meeting
Ask for a raise in-person if possible. If in-person doesnt work, set up a call to ask for the raise.
Do not ask for a raise through email. Why? It is much easier for your manager to come with an excuse and say no through email.
With an in-person interview or phone call, you can provide the necessary details for the case on why you deserve the raise.
To arrange the meeting, send an email asking if you can set up a call to discuss your compensation through an in-person meeting. Keep it simple and straight-forward.
4. Prepare and practise what you are going to say
Before you take the call, make sure you know what you are going to say.
I recommend you create a script and you practise it repeatedly until it comes out naturally.
Here is an example you can use:
“Thank you for taking this meeting with me today!
In my current role, I am excited to work towards the company goals and grow my responsibilities within this company.
As a result, I wish to discuss my salary with you. Would this be a good time to discuss?
(You will get yes 99% of time)
Based on my research, which includes looking at averages for my job title in this area and years of experience, skill set, I believe a salary increase of 15% would be ideal for my compensation.
In the past year, I have delivered several projects successfully, increased customer satisfaction with my clients, and completed 2 industry certifications. And, I want to continually grow and perform at the best of my ability for this company.
I believe these accomplishments have made me ready for a raise.
Let me know your thoughts?” (Source)
5. Be ready for the counter and ask questions if they say no
After you make your pitch, your manager will start considering your request.
Your manager may have follow-up questions. They might ask you to break down your accomplishments or ask you further details on your salary research.
Be prepared and present them to your manager.
Welcome and prepare for counter offers or a no.
In many cases, your manager will take what you presented and take some time to get the approvals from the higher ups.
Be considerate and know that it can take some time to get the approvals from other leaders.
On the other hand, if they say no to you at this time, you can ask them why a raise isn't currently an option.
Here are some questions you can ask to get further details:
"Are there skills or accomplishments you would like to see from me before increasing my comp?"
"Are you satisfied with my performance overall?"
"Is there a better time for us to have this conversation in the near future?"
These questions will guide you on how to ask for a raise in the future.
6. Thank you manager and follow up
Regardless whether you got the raise or not, take the time to appreciate and thank your manager.
It might have been harder than you think to say no to giving you a raise.
After the conversation is done, send an email to your manager summarizing what you talked about and what you agreed upon.
This email will make it easier for your manager to take it to their higher ups to get the approvals needed for the raise.
If they say no to the increase now, the email will also help you follow up with your manager later when things are in more favourable conditions.
Plan to follow up in about 6 months if they say no now.
Bonus tip 1: Setup performance reviews every 6-12 months and discuss your salary
Setup performance reviews with your manager every 6-12 months. You can bring the compensation question quite naturally during these conversations.
Once the performance reviews have been set up and you are hitting the goals you have set with your manager, you can use this as proof for why you deserve the raise.
Especially if you have been doing quite well at your job, and have not received a raise for the last 6-12 months, the performance reviews will provide you with a nice transition for you to ask for a raise.
Bonus tip 2: Apply or consider other job offers
If you feel that there is no space for you to grow or get a better salary in your current role, I recommend you consider applying for other companies and get offers.
Please do not give an ultimatum to your manager. “Give me more money or I am leaving” attitude usually leaves a bad taste with your manager and may result in an invitation for you to leave the company.
Apply for other positions and see if you have offers coming in your way.
If you have offers coming your way you can let your manager know "I have a situation that I need advice on. X company is recruiting me heavily and I need clear direction on my career future here”.
This will provide you the most honest and clearest response from your manager.
