Career & Finance Fridays

My salary situation at ‘Morning Joe’ wasn’t right. I made five attempts to fix it, then realized I’d made the same mistake every time: I apologized for asking.

Asking for a raise isn’t really a fun experience and can be quite stressful. But you also have to remember that it’s one of the easier ways to make more money for something you are already doing.

During the last 10 years, I’ve been both been an employee and a boss, looking after a big team of people, and I know exactly what techniques you should be using to get the raise you want!

Normally your company will budget for your salary increase at the beginning of the financial year, and with the average raise normally set around inflation (US salary budgets are projected to increase by an average of 3.2 percent in 2019), if you want to get a bigger raise, you are going to have to work hard at it.

Since 2008, I averaged between a 15% pay increase year-on-year at my job (including some 20% jumps due to promotions). That’s up to 5 times higher than average!

And no! You don’t have to keep jumping from company to company to getting the raise you want. 

How do I know?

Because I achieve that by staying pretty much in the same company! 

Was I lucky? Is my company special? 

Not really, I have many examples, in my company and in other companies of people that got stuck in their own salaries.

If you don’t want to be one of them, keep reading to find out the best ways to get a raise and wind over your boss! I am going to share everything I learned with you!

The real impact of not getting the raise you deserve

It’s easy to say: “My boss will just give me a good pay raise”, “I can’t be bothered to fight for it”, “If I don’t get what I want, I might just find something to do on the side to make a bit more money”, but do you really know how much difference an extra 10% a year can make in the long term?

Let me show you two examples:

Paula and Kirsty both started to work in the same company at the same time, with the same salary: $40,000 a year.

Paula: Paula has always been proactive, worked as hard as she could, but knew her real value and was always prepared to show her boss how much she achieved at the end of each project.

She always spent a few hours to prepare ahead of her annual review, to present her achievements to her boss, and between pay raises and promotions she averaged a 13% increase, with 3 promotions, in which she managed to get a 20% pay raise.

Kirsty: Kirsty has always worked as hard as Paula, but was less keen to show her boss her achievement. She was grateful to have her job, and as much as she wanted to earn more, she was worried that by asking for more money she would upset her boss. Plus, if she was really worth more money, her boss would just pay her more, right?

She also wasn’t sure if she wanted to take on more responsibilities…Therefore she never asked for a promotion. Her boss seemed pretty generous, always giving her a 3.5% raise, a bit over inflation.

And after 10 years she finally got a promotion and a –she thought– great 10% increase.

Happy days!

So both Paula and Kirsty started their career making $40,000, they both worked hard, but Paula has made $746,300 and Kirsty only $479,183.

A staggering $267,116 more!

And why? Just because she knew what she was worth and wasn’t afraid to discuss it with her boss!

So, stop worrying and get ready to get the raise you deserve!

How to get the raise you want

The first thing you need to do is to make sure you CAN ask for a raise! Of course, everyone is able to book a meeting with the boss and ask for a raise. 

But if you actually want to get one, you have to formulate a strategy, educate yourself, be prepared for what you are going to say, and have done the hard work ahead of asking for it.

1. Dos & Don’ts

Dos

Always over deliver

Before you walk in your boss’ office saying “I want a raise”, you need to ask yourself if you deserve it. There is no point in putting yourself in a stressful situation by asking for more money if you haven’t worked hard and exceeded your company’s expectations.

Ask yourself the following questions:

• If you were your boss, would you be happy with the work you are doing?
• Do you get things done without being reminded?
• Do you always help others and have a positive attitude?
• Are you constantly learning by talking to more senior employers?
• What are you bringing to the company that other people in your same position aren’t?

If you can confidently answer “yes” to most of these questions…what are you waiting for? 

It’s time to get that raise you deserve!

But if you don’t think you are being your best self at work, why would your boss pay you more?

Demonstrate your value

If you want to get a raise you need to go above and beyond what you are expected to do and always take on more responsibilities.

During the year, ask your boss how you can excel in your job. Ask if there are any other tasks you can take on or if you can help your co-workers with other projects. Understand your job and ask questions about how you can improve.

Doing your job and working a lot of hours aren’t enough to guarantee you a raise. 

Most people do that! 

You need to demonstrate how you’ve added value to your team and organization. Identify how you have created efficiencies, or how your helped other members of the team. If possible, try to include numbers. 

For example: 

“We estimated we would need 15 people for the job, but thanks to my organization and management skills, we accomplish the same result at high standards with 10 people saving the company $100,000.”

But if you sit in your little corner, without sharing your wins, your boss will never know your real value. Don’t wait for your annual review to share your accomplishments. Gently remind your boss of what you have done during the year, and how that action has helped the company. 

By the time you are going to ask for a raise your boss will have a much more positive view of your value and will be prepared to give you a raise, and possibly even a promotion! 

Do your homework: how much to ask

One of the most important things to know if you want to get a raise is to find out how much to ask for a raise.

Which means you need to discover how much your market value is.

This is where things get a bit interesting and you need to become a bit of a detective.

The first port of call for this is normally doing industry research to find out what people in similar positions are paid. You can use free tools for this, like GlassDoor salary estimate tool.

But you have to remember that these tools don’t take into consideration:

• the current market (is your job in demand right now? Is there a big slow-down in your industry?) 
• the details of the local market (how much are people really paid in companies in your area?)
• Experience (how much experience do you really have compared to others in your company?)

There is no point at looking at how much someone gets paid in LA if you work in Toronto!

One person on my team, during her annual review just said to me:

“I’ve done my research and looked for people in a similar job as mine and I should be paid between $60,000 and $80,000.”

Now, the average salary for that position in the company was between $35,000 and $50,000 so, to this day, I still don’t know where she got those figures from. All I wanted to do was laughing in her face (of course, I didn’t! – I just explained the reality of the situation and gave her something more realistic to work towards…). 

MY TIPS FOR NOT ENDING UP ASKING FOR SOMETHING SILLY ARE:

• Ask the recruiter of the company what the salary range is for your position. If you feel uncomfortable asking in your company, get in touch with recruiters of similar companies and ask for real data. This is much more likely to give you something real to work with. Something that you will be able to back up with your boss.
• Be reasonable: it is very unlikely that your boss will agree to a pay raise over 5-10% unless you have done something outstanding, you are asking for a promotion, or you are really underpaid. 

BONUS TIP

If you are underpaid, bring your research to your boss and how you got to that conclusion. I always try to pay people what they are worth, but even the fairer boss can sometimes overlook someone’s salary. Every time someone stated their case with reason, I always did my best to get them what they deserved, as good employers are a value to the company and hard to come by.

Don’ts

Don’t make the request about you and why you need it

Never ever tell your boss why you need a raise. The conversation ALWAYS needs to be about why you deserve it.

These are 2 real-life examples of requested I received:

“I put an offer on a new house and I need more money for the down-payment.”

What was going on in my head: “I really don’t care if you are buying a house you cannot afford…You should just think about that before you make an offer.”

“Regarding my raise, this was a figure that my partner and I discussed after examining our financial position with our second child on the way…”

What was going on in my head: “If you can’t budget your life, I am not really sure how you are going to be helpful for the company. Also, I don’t think I care how much your partner wants you to make…”

I am sure I don’t have to tell you these guys didn’t get the raise they wanted…Your boss will only consider giving you a raise based on your performance and what you have achieved for the company. They really don’t care about your personal life…shocker!

If only I knew, I wouldn’t have asked for an extra $10,000 for my trip to the Galapagos next year lol!

Don’t mention other colleagues salaries, unless…

Never, ever, ever compare yourself to someone else.

Every time someone mentioned this to me, it never ended well!

If you really want to get a raise, the conversation needs to be about you:

• Your achievement
• Your experience
• The value YOU bring to the company

Grace might be making more money than you, but:

• Does she have more experience?
• Has she achieved something you are not even aware of?
• Does she have qualifications you don’t have?

Specifically mentioning other people’s salaries makes you look greedy and someone that gossips around.

I am not saying you shouldn’t use the information you have to your advantage. But it needs to be done the right way.

Again, 2 real-life examples:

Don’t

“I have been here ages and Paul told me at the pub that he makes $10,000 more than I do. I want to make as much as he does because we have the same title!”

What was going on in my head: “Sure, why not? Problem is Paul has 5 years experience more than you do, he’s more reliable and has just delivered a project without me having to get involved to help him at all. How does that compare to your awful performance this year?”

Do

“I have worked really hard since I’ve joined the company. I am very skilled and organized and although you are very supportive, I am very independent and always deliver amazing work, especially while working on the last two projects […]. I know that similar employers who do what I do in the company are earning at least $10,000 more than me. Is there a reason for that?

What was going on in my head: “She’s got a point, my mistake…Mmm, I am going to have to find some money to give her.”

Don’t ask for a raise in an email

It’s always a good idea to make your request personal. You are not going to be able to share all your achievements and judge your manager’s reaction in an email. It’ll also be harder for your manager to close the conversation too quickly, without evaluating what you are saying. It’s much easier to dismiss your request in an email.

Asking for a meeting also shows your boss that you are serious about it. 

If they are busy people (and most managers are), just drop them a line to ask when they have some time to discuss your performance.

2. When to ask for a raise

The best time to get a raise: timing is everything!

You’ve made up your mind, you know exactly what you want and you are ready to go and get it!

But when should you do it? Believe it or not, there are good and bad times to ask for a raise!

Annual performance reviews: during your annual review, your boss is already evaluating your performance and how much you are worth to the company. If you come prepared, you are much more likely to get a raise. Also, make sure you familiarize yourself with the company standard practice. If they normally only give a pay increase during annual reviews, you are unlikely to get it at any other time.

After completing an important project or a big accomplishment: have you just delivered a big project on time and under-budget? Have you made a big sale or signed a deal with a major client? Exploit your success, and you might find yourself in the perfect position to get the raise you wanted!

If the company is expanding: if your company has just landed a big contract, is opening a new department or has more work than usual, they’ll really need your experience. You can help training junior employers, manage a bigger project, bring in more sales. Now it’s the time to go for the money!

When your boss is in a good mood: people are only humans, yes even your boss! If you are going to ask for a raise, make sure you do that when your boss is not having a bad day. If you are aware of the company being under a lot of pressure, and your boss being nervous, just wait for a couple of weeks, until he/she seems happy and more relaxed. 

The best day and time to ask for a raise

According to psychologists, if you want to ask for a raise, you should avoid Mondays. Managers tend to be more stressed on a Monday, while they try to catch up on what needs to happen that week.

Morning (after coffee) also seems to be better than the afternoon.

According to the research, people in the morning tend to be more moral and take more ethical decisions.

Friday seems to be the best day of the week to ask for a raise, as your boss is probably looking forward to the weekend. But don’t wait until is too late in the day otherwise your manager might be already with his/her mind out of the office and won’t consider your request seriously.

So best time overall: Friday, mid-morning (11ish).

3. How to ask your boss for a raise

You are finally in the meeting with your boss! The time has come to get the raise you always wanted. 

But what should you say?

First of all remember to stay positive and enthusiastic, at all times. Start by saying what you have enjoyed about your job in the last year and stay focused on your end goal.

Always be clear during the conversation, and be confident! After all, you are here for a reason. 

Be prepared: share your achievements

Write down on a piece of paper all the reasons why you deserve a raise. Be as specific as possible, bring numbers into the conversation. Describe how you helped and trained other employers. 

Remember, you have to demonstrate your value to the company.

Share your goals

Tell your boss what you would like to achieve in the coming months, and how you are planning to achieve it. Any plans to improve the department performance and how you can help to get there and be a key player in the company. There is no point to talk about what the company could do better if you are not prepared to help to get there.

Don’t expect your boss to have your career path laid down for you. Take the initiative and let your boss know what you want to achieve.

Be specific

Ask for a specific number. You need to go in knowing exactly what you want. And back your number up with what you have found out during your research.

For example:

“I would like you to consider an increase between $5,000 and $7,000. Based on what we discussed, and knowing that I am in the mid-range salary for my position but I am performing at a senior level, I would love for you to consider increasing my salary accordingly.”

Be committed

If you want to get the money you deserve, you need to show you care about the company. If it looks like your boss is not going to give you what you want, NEVER give an ultimatum or threat to leave.

You need to show you are passionate about the work you are doing, committed and enjoyed facing new challenges on your latest projects. You need to give the impression you are in for the long game, that you want to stick around and with your skills contribute to the company. If your boss feels that for an extra $5k you are prepared to leave and move somewhere else, they’re unlikely to give you what you want.

Listen

After you made your case, take a deep breath and listen to your boss. 

Really, listen. 

Listen to feedback and what he/she has to say. Be keen to learn from what your manager has to tell you about your performance, keep your emotion under control and before you make any rush decision, take your time to think.

Be patient

A decision for a raise could take days, even weeks. If the raise is above what was budgeted for, it’s likely that your boss will have to discuss it with other people in the company and this could take some time.

4. What to do if your boss says no

Wow, you’ve been through all this, and your boss says no?

Ask for feedback, find out why you didn’t get the raise you wanted. Start a conversation about what it would take to get you to that salary level.

Find out why the company isn’t going to give you more money:

• Do you need more experience? If so in what areas and how can you gain the extra experience?
• You don’t have the skills? What do you need to do to get them?
• Is there any other task you can take on to get a raise?
• Can you discuss a timeframe and what goals you need to reach to get there?
• Budget is tight? If the company is going through a tough financial time, ask when it would be a good time to discuss your salary again.

Don’t leave until you know exactly how you can turn the no into a yes!

But also, accept defeat. You now know the reasons, and what you need to do to get there.

Please don’t be that annoying employer that keeps trying to get more money by wearing your boss down without any evidence for an hour. If you are that person, stop it! Your boss hates talking to you!

So, did you get a raise?

Remember, if you are a good employer, you are worth a lot to your company. Don’t be afraid to ask for what you are worth!

I hope these tips will help you, as much as they helped me in the last 10 years!

Employment & Career

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