Asking for a raise

Asking for a raise is one of the most feared and awkward things many people can think of, so much so that many simply don’t ask. And in an ideal world, you wouldn’t have to ask. In the ideal world, you would be acknowledged for your work and would be rewarded financially. Shouldn’t it be enough that you work hard? Unfortunately, it is not enough. As uncomfortable and frustrating as it is, you simply must learn when and how to ask for a raise. You risk loosing too much if you don’t.

Sometimes, it feels as if asking something for ourselves goes against our programming. Women are taught that if they follow the rules and work hard to please those around them, they will be rewarded. This is one of the injustices that is frequently talked about when it comes to fair compensation.

For example, as I mentioned earlier, Mary was frustrated over Ellen being promoted over her. Ellen had come to the company two years ago, and was well liked by many of the people. And it wasn’t that she was bad at her job, Mary said. But she just did her job and then went home. But she made sure that everyone knew what she was doing. Once, she and Mary had worked together on creating a new database to replace their old one. It had taken many weeks. Then a short time later, at a large meeting, a question about the database came up. Ellen quickly spoke up, explaining to the person the intricacies of how to sort the data. Mary sat silently in her place while Ellen basically gave the people present a tutorial on the database. The impression they came away with was that Ellen was very competent, and that she had single handedly created this database. She never said this, but since Mary said nothing, many people came away with this impression. Time and time again, she was able to let the people around her know what she was doing, without being obvious about it. When she went in and asked for a raise, she had many accomplishments to point out, and the boss agreed with her on everything. Mary, on the other hand, did not ask for the raise, and rarely “tooted her own horn”. But she worked very hard, waiting for someone to notice her and reward her for her hard work and ingenuity. Unfortunately, in the real business world, it just doesn’t work that way. You must learn to speak up and make yourself noticed. And you must learn the rules of the game, if you want to play.

First of all, how do you know when it is time to ask for a raise? Well, if it has been more then 18-24 months, it is time to take matters into your own hands. And if you have been given additional or new responsibilities, it is time to consider asking for a raise.

When many people think of asking for a raise, they envision going into their bosses office and making a dramatic case for more money, and then cross their fingers. Actually, most raises are won through organized campaigns, not dramatic sell jobs. And you are more likely to get one if you work within the established evaluation/ compensation system. When are raises given out? What is the company policy about evaluations? These are things you need to know, and ideally should know before you even start a job.

When you begin to think about asking for a raise, it is important to think about what standards your boss uses for measuring performance, and concentrate on the achievements they value. As I’ve said, this is the same for salary negotiation. You always want to cater to what they value, regardless of whether you agree on what is important. It is easier to discern this when you’ve been working with a particular boss or company for a while.

Also, think carefully about your evaluations. Many people are afraid of their evaluations, but you should look forward to them. Simply put, many companies evaluate their employees once a year or once every six months. Usually, your boss will evaluate your work performance, and you will evaluate yourself, in light of the previous goals you’ve set for yourself. So here is a hot tip: on your work computer, create a file now that says “personal evaluation” and enter into it any accomplishments you can think of. As you accomplish things or reach certain goals, add them to this private list. Otherwise, if you sit down after a year and try to think back on what you have done, you are bound to forget quite a bit. If you keep your accomplishments list updated, when it comes to raise time, you will have too much to choose from, and can pick and choose according to what you think your boss would respond to. (And it will be easier to hammer out a new resume, should the need arise.)

Evaluations should be low stress, because you are filling them out on your own time, and then handing them in. So you should have plenty of time to think about what you want to say. It is one more way to be prepared when it comes time to ask your boss for more money. You should already have a whole list of why you deserve that raise.

There are basically six steps to asking for a raise. They are

Be aware of timing
Decide on how much you will ask
Gather all the information you will need to make your case
Set up the meeting
Negotiate with your boss, and
Be prepared if it doesn’t go your way.
Let’s look at these in more detail.

As with almost everything, timing is everything. You should know the companies policy on pay increases, and what their time schedule is. Don’t expect to be the exception to the company policy. But if there is no policy set up regarding raises, then it is time to ask for one if it has been 18-24 months since your last one (or when you started), or if you’ve recently been given new responsibilities.

How much are you going to ask for? Do you want seventeen dollars an hour instead of your present $15? Are you seeking a ten percent increase? Do you want to go from $35,000 to $38,000? You will know what is reasonable from the research you do. (See step one of salary negotiation of how and where to research what people make.) You don’t want to be seen as having poor judgment by asking too much, but you do want to be seen as a person who knows her own value.

Be armed with information. Make sure you can discuss how you have excelled at your job. Rely on your personal log of achievements. Have you increased profitability or effectiveness? Have you decreased errors? Have any of your suggestions or ideas been implemented? If possible, try to quantify what you have achieved. Make sure you can show several ways, or reasons, why you deserve a raise, not just one.

Now it is time to set up the meeting. Make sure it is with the person who is responsible for your position. Pick a time that is convenient for them, and make sure you have enough time to discuss your points. You can simply say something like “Is there a good time when I can schedule a meeting with you? There are some things I want to talk about”, or whatever sounds natural to you. You could also tell them, in a positive, good natured way, that you want to discuss your position and future. “I’d like to talk about my position with you.” It depends on how well you know your boss.

During the meeting, lay out your case clearly. You can start by simply saying, “I’d like to discuss my compensation with you. It’s been almost two years since it was addressed, and I feel I’ve accomplished/achieved quite a bit.” After you reiterate your achievements with them, ask them if they agree on what you have accomplished.

During the meeting, lay out your case clearly. You can start by simply saying, “I’d like to discuss my compensation with you. It’s been almost two years since it was addressed, and I feel I’ve accomplished/achieved quite a bit.” After you reiterate your achievements with them, ask them if they agree on what you have accomplished.

Mary decided she would ask for a raise, and began preparing. She had done her research on how much other positions paid, and we spent a lot of time going over her accomplishments. She practiced saying them out loud for a long time. We did some role-playing, and she practiced different responses. She had also decided that if she did not get a raise, she would begin looking for a new job. She had no intention of telling her boss this, at this point, but just knowing it made her feel more confident. Now that she was aware of how underpaid she was, she did not feel as tied to the company which was obviously undervaluing her work.

She had decided she would ask for a 15% increase, and she practiced saying this over and over. Finally, she made an appointment with her boss for the following week, and bravely went in, focused on making her case. She carefully explained that she wanted to go over her compensation, in light of her work and accomplishments. She let her boss know that she knew she was underpaid, and used many examples of her successes to back up her request. In the end, she did not remember everything, and critically evaluated her performance, but when all was said and done, she was granted a 12% increase. Her boss finally realized that he was in danger of loosing his valuable employee.

Mary was happy with the 12% raise. It gave her an enormous sense of accomplishment. She also decided, in this process, that she may start looking elsewhere in the next year or so.

Your boss may have a lot of power, but many companies have procedures that most be gone through when a raise is given out. You may need to allow your boss several weeks to think matters over and set in motion the procedures needed to allow your increase to take effect. You can also ask them at the end of the meeting how you can help facilitate the process. Is there something you must do with HR? Is there something you should write up? Make sure you finish any meeting like this by outlining what has been covered and who is responsible for the next step. For example, “Well, to sum up, it sounds like it is possible to get the 10 percent increase, if you can convince the people above you. What would you like me to do to facilitate the process? Would you like me to bullet point my achievements so you can go over it with them?”

Be prepared for different responses. For example, they may tell you “it’s not in the budget.” Ask them questions about this. Remember, what they are saying may not be completely true, it may be a negotiating tactic. Ask if a specific amount is allocated to salaries, or a range of dollars. Ask if money can be shifted from one area to another. If you department is cutting costs in one area, could the savings be shifted to your raise? Basically, you are trying to find out how flexible the budget is. Do not be afraid to ask questions. The budget is your business! And your boss will know you are serious. If nothing else, ask whether your request will be considered when they draw up the next budget.

Patricia Smith, author of Each of Us: How Every Woman Can Earn More Money in Corporate America, has a fabulous chapter on negotiation. She gives many possible responses to all sorts of objections your boss can raise. And she details negotiation tactics in a very understandable way.

Lastly, you must be prepared if it doesn’t go your way. Maintain your composure and do not get emotional. Make sure you understand your bosses reasoning. Be clear about what you need to do in the future for them to feel you would merit a raise. “So if I understand you, you are saying that once I finish the in-house certification process, you will reconsider my raise?” It is important to outline with your boss what their exact criteria is and specific goals they want to see accomplished, in order to reconsider you for a pay raise.

It is important that your boss be your advocate. In large companies, where it is easy to get lost, a boss can be a powerful advocate. They may need to talk to the people above them on your behalf, and otherwise show real initiative in pursuing a raise for you. And if you are stuck with a bad boss, as unfair and frustrating as that is, you may need to consider moving.

For example, a client of mine had worked in the electronic products department of a large company for about 18 months, when she got a new boss. This new boss was not a good boss, not an advocate for his staff, and it became abundantly clear that he had no intentions of helping the people under him continue to develop their skills and move forward. The natural inclination would be to say “it’s not fair!” And it isn’t. But she had to deal with the situation at hand. So she looked around the company and found a department she thought she would enjoy working in. She made it known to the head of that department how much she would love to work under her, and would be willing to make a lateral move, meaning move without a pay increase. Four months later, a position opened up in this department, and my client was given the opportunity to take the new position, which she jumped on. She received a raise about six months later, and then was promoted within a year. She has continued her climb in the company, while her former co-workers labor under a bad boss.

It is also important to realize that the company is not always on your side. Their job is to keep costs down, and yours is to earn what you deserve. The company may have many tactics to keep you from getting a raise. Sometimes, they will ask you to wait a year. “We don’t have the money now, but if you would only wait until next year, I’m sure we can give you a good raise.” Sometimes they cater to the good girl syndrome. “The company can’t afford it just now, but look at all the other things we offer.” “Other people don’t make that much…” and “Don’t you love your working environment?”

I’ve had people tell me that the HR department talked them out of a raise because they were told it would put them at the top of their range for that position, and then they “wouldn’t have room to advance any more”. This is a ridiculous argument. First of all, it would be better to earn at the top for a longer period of time, and second, most likely you will be looking for a promotion in the future anyways! The point is not to be fooled by what a company says. You may believe them the first time (maybe), but if they delay a second time, it is time to move.

If you realize that there is just no way you will be able to move forward in your company, it may be time to move to another company. I realize that no one wants to hear that, but sometimes the only way to continue rising in your career is to leave your company and enter at a higher position with another company. Sometimes, people get “typed” into a certain position, and management just can’t see them in a higher place.

Years ago, when I worked for a non-profit, I started as an administrative assistant. Eventually I worked my way up to a project coordinator. But it felt that I could rise no higher. I saw what the people above me where doing, and wanted to move into their positions. I even had the appropriate education to do so. But they had started with the company at a much higher level. They saw me as an administrative assistant. I was told privately that I would never move up to the places I desired if I stayed. I would have to leave the company, gain experience somewhere else, and then come back and be hired into a senior position. I did want to continue moving up in my career, and I decided to leave. It’s possible I could go back now and enter into those higher positions I so coveted, but I no longer care to go back. And I have no doubt that if I had stayed, I would have remained in the lower staff positions, most likely forever.

My husband told me about a very motivated and bright co-worker, who had an MBA. She was in their marketing department, and worked extremely hard. She was passionate over the companies products, and worked hard to increase their market share. Eventually, a vice president position above her opened, and she applied for it. She was the logical choice, and would have been perfect for the position. But in the end, she was passed over. She had been “typed” into a certain position -- marketing, and the higher ups could not think about her in a different capacity. There was also some internal speculation that she was passed over because she was younger and a woman. My husband, who had advocated on her behalf, knew that when she was passed over, she would most likely leave the company, and that is exactly what she did. His company lost a valuable employee, but it was clear to her that she could move up faster if she moved on. He heard a short time later that she was hired on as a vice president with one of his company’s competitors. She took care of herself. And you have to also.