THESE ARE THE BEST TIMES TO ASK FOR A RAISE — AND GET IT
Many employees dread asking for a raise, even if they deserve it. Knowing when you’re in a perfect situation for salary negotiation can take the edge off, however.
“Negotiating a pay raise is about timing, belief in oneself, and ability to articulate and support the case for a pay raise,” said Andrew Snyder, a psychotherapist and executive coach.
GOBankingRates spoke to a number of career experts about scenarios where the employee might have the upper hand in asking for a raise.
THE MARKET RATE FOR YOUR JOB IS HIGHER THAN YOU’RE BEING PAID.
You’ve done your homework on the pay rate for your position and realize you’re underpaid. You can use the compensation rates to your advantage when you choose to have the pay discussion with your boss. Just make sure you’re comparing apples to apples.
“When evaluating compensation, it is not just about money,” said Kathleen Downs, senior vice president at Robert Half Finance & Accounting. “How much vacation time do you have? Do you have flexibility as a valued employee that you may not enjoy with another employer? What is your potential upward mobility over the next couple of years? Make sure you’re looking at the full package.”
Of course, just because the market rate for your position is higher than you are being paid doesn’t mean you’re going to immediately get a raise or that your employer can afford to pay you more. In that situation, it might be better to move to a city with more opportunities.
YOU’VE TAKEN ON ADDITIONAL JOB RESPONSIBILITIES.
Have your job duties expanded substantially? Is your to-do list longer than your monthly grocery list? If so, it might be time to speak up at work.
“When you’re asked to take on responsibilities not in your original job description or you’re supervising more people, these can be good times to ask for a higher salary,” said Downs.
Of course, it all depends on how well you are doing at these added responsibilities. Even though this might add merit for a raise, Downs cautioned there is a balance between taking on additional tasks and gaining critical skills through your employment. You might want to tread lightly if you’re learning invaluable lessons that give your resume a boost.
YOUR ANNUAL REVIEW IS COMING UP.
The meeting to discuss your performance is happening whether you like it or not. If you know you’re in good standing, it would be an ideal time to have the raise discussion, according to Mike McRitchie, a career coach, resume writer and business strategist.
It should be quite easy to strike up the discussion if your boss is already raving about your work. You can easily pivot of a notables accomplishment that she brings up.
Come prepared, however. Maybe your boss has never said a nice thing about anyone. McRitchie recommends logging your accomplishments over the year and have the information on hand at the meeting.
THERE’S AN OFFER FROM A COMPETING COMPANY.
You’ve been hunting to see what other jobs are available, and there's an offer letter with your name on it. this can be your ticket for obtaining a raise if you wish to stick around.
“Typically, this turns into your current company manager asking what it would take for you to stay and not take the other job offer," said McRitchie.
Of course, this will only happen if you are in fact a performer and valued employee. Or if the offer you're getting is way beyond what your current company can afford to offer you, then they might just wish you the best, McRitchie said. It would be smart to prepare for both scenarios, and prepare your finances for a potential job change.
THE COMPANY IS DOING WELL AND YOU HELPED.
If the company is performing highly and you can show how your efforts have contributed to the succes, then this is an excellent time for salary negotiation, according to Cheryl
Palmer, a career coach and owner of Call to Career.
“Before talking to the boss about a raise, I suggest that employees do their homework,” said Palmer. “If the employee is in sales, it is very easy to show how the employee contributed to the bottom line since sales is very numbers-driven. But even employees who are not in sales can point out the contributions they have made to the company.”
Even quantifying time or costsaving measures can help to make a persuasive case for a raise, said Palmer. For example, “improving customer service can lead to client retention as well as acquisition, which in turn translates into a measurable contribution to the bottom line,” she said.
YOU CREATED SOMETHING OF IMMENSE VALUE.
Have you designed a system or tool that has positively impacted your company’s bottom line? Doing so while excelling in your current position could put you in prime position to ask for a raise, according to Chantal Wynter, an author, speaker and career coach.
“For example, if you work for quality control and you created a tool to track the timeliness of corrective action for defective items showing the time wasted and the number of corrections needed, by using this tool, you are able to pinpoint a bottleneck and provide a solution,” said Wynter.
If you know that you contributed in such a way, whether with or without recognition, go ahead and toot your own horn and bring this to your boss’s attention. Just be sure you can show how this initiative has helped the company financially and that it does link back to you.
YOU RECEIVE A PROMOTION.
Perhaps you’ve taken a job promotion at your company or currently have your eye on an opening. Generally speaking, a company might hire from within to save time and resources — specifically monetarily. But you shouldn’t let them devalue your worth by not paying you more for the new role.
“If a company can get away with hiring internally without giving a pay raise, they may try to do so,” said Hallie Crawford, a career coach. “So let them know what you have researched and what you feel would be a fair amount. Then, you can negotiate salary as you would for any new job position.”
When you do your research, be sure to look not at the company but the general going rate in your area.
YOU’VE NEARLY ACCOMPLISHED YOUR WORK PLAN.
Everyone should have a work plan that outlines goals with the potential to earn a more lucrative pay.
“An opportune time to discuss salary or promotion is the time when the entire plan comes close to the end, or when an employee is working on the last stage of the discussed work plan,” said Andy Chan, a career coach and founder of Prime Opt, a career coaching center..
This is the right timing for both an employee and an employer because there are already delivered results, according to Chan.
YOUR EMPLOYER WILL LOSE MONEY IF YOU QUIT.
Employers are in business to make money. If you’re the cash catalyst, you’re in the perfect position to ask for a raise, according to Amy Cooper Hakim, an industrial-organizational psychology practitioner and principal consultant at The Cooper Strategic Group.
“From a purely financial standpoint, an employer is more likely to agree to give a raise to someone who brings in clients and business than to someone who does not,” she said.
Likewise, Hakim said the employer is more likely to give a raise to someone who is a solid producer than to someone who is not.
YOU’RE THE ONLY ONE SKILLED IN A TASK THAT IS BUSINESS-CRITICAL.
Training someone else means your company will have to invest money in a person who might not stick around long enough for the company to reap the benefits. Your boss would much rather spend time producing revenue with a highly skilled existing employee, even if it means giving a raise.
“When an employee is needed for his skillset, and when no one else can do the job as well as he, then that employee has the upper hand to ask for a raise because the employer recognizes the value that he brings to the company and to overall company goal attainment,” said Hakim.
YOU CONSISTENTLY EXCEED PERFORMANCE GOALS.
Are you the star performer at work? You might want to consider asking for a raise.
“Employers understand that rewards encourage positive behavior,” said Hakim. “If an employee is a solid performer who consistently exceeds performance goals, then the employee is more likely to have the upper hand when asking for a raise because the employer doesn’t want to discourage the employee’s current performance.”
Would you be able to perform at the same level if you felt undervalued? Generally speaking, employers would rather not run the risk of ruining your current performance by denying your request, according to Hakim.
YOU COVERED FOR YOUR MANAGER.
Bosses want to know they can leave the company in good hands if they can’t be there. If you can keep the ship running without any issues, it is a big deal, according to Adam Goldberg, a human resources professional who has given out raises before. If you have significant wins during that period of time, even better.
“Bosses are typically extremely grateful in those moments and it may be a better time to have a compensation discussion,” he said. “It is a good time to explain to them how you felt empowered by the experience, how you enjoyed the extra work, and how you feel like you might be ready for additional responsibility.”
In that conversation, Goldberg said you might also be able to say something that plants the seed for a raise, like “please try and remember this moment during salary review time, it would mean a great deal to me to see something come out of my continued hard work and dedication to the company.”
AFTER COMPANY TURNOVER.
Turnover can be worrisome to management, according Goldberg, because it can put the company in a fragile state. If you’re sticking around, this would be the time to have an honest discussion about salary.
“You can tell them how you have seen people leave, how you know the kinds of salaries others are getting elsewhere and at the same time remind them of your commitment to their company,” said Goldberg.
Basically, the ball is in your court to ask for a raise.
“It is a time when they might have an ability to backfill positions at a lower salary and redistribute some of those dollars to others,” said Goldberg. “It is a time when they can reshape the former incumbent’s job, give you some of their responsibility and possibly even some of their dollars as well.”