Assuming you like the company you work for and believe it offers room for growth, it’s often better to ask for a raise instead of quitting. Your employer might not know you’re unhappy with your current pay if you’ve never mentioned it. Here are the steps to take.
The amount of the raise
The first question is how much to ask for. 3% is considered an average to above-average increase in compensation. Find out how much your experience, skills, and accomplishments are worth in the market. You can network with peers or use industry reports or online tools to get an idea of the salary range for your level and position. You must document and quantify the increased workload and goals met and how they have helped the company save or make more money. Having concrete evidence and data will show you deserve a raise.
You can use a pay raise or hourly pay calculator to determine what raise to ask for. Look for a free calculator online or purchase an affordable app.
The time and place
Having second thoughts? Don’t: a 2024 survey showed just 19% of employees were satisfied with their compensation. When you do ask for a raise, choose your timing carefully. Don’t approach your boss when they are miserable, busy, or under pressure. Choose a moment when they are open and receptive to feedback and in a good mood. According to a study by psychologist Daniel Kahneman, who won a Nobel Prize, people make financial decisions based 10% on logic and 90% on emotion.
Ideally, ask to schedule a meeting and tell them why you want to meet. You could align your request with a new budget cycle, a successful project completion, or a positive performance review. It’s not a good idea to ask for a raise when your company is undergoing restructuring or facing financial difficulties.
Some businesses conduct quarterly or annual reviews with employees. If there is one coming up soon, your boss could already be expecting to talk about your compensation. You should broach the subject if the business is doing well financially and during your annual review if it’s positive.
The timing also depends on when the fiscal year ends. This is the 12-month period used by businesses for tax reporting and budgeting purposes. Typically, the close of the fiscal year is at the end of January, when companies are probably making recruitment and compensation plans for the following year.
Let’s say the fiscal year starts on Jan. 1, and salary discussions take place in November. If November passes and you ask your boss for an annual raise, they might say you’re too late, as annual budget adjustments are closed.
Ideally, ask them privately and in person. If you’re in different locations, you can arrange a video call to discuss the raise. Do not ask for one without scheduling an appointment on the calendar. Avoid hallways, kitchens, and other common areas in the workplace. The talk should take place in a room with a closed door. Don’t ask in an email if possible.
Schedule the meeting on the calendar at least ten days earlier unless you’re asking for a raise during a performance review. In every event, let your boss know in advance that you plan to discuss your salary or wage. You could formulate it this way:
“Could we talk about my compensation during my performance review?”
If there is no review:
“I’d like to discuss my compensation. Would this (time and place) work?”
The outcome
During the talk, draw attention to your accomplishments and value, acknowledge you have improved in certain areas, and point out that you have been and will remain willing to take on more challenges. Explain that the work volume has become much higher, and raising the compensation accordingly would be fair.
Rejection is always a possibility. In this case, you might join the 45% who quit their jobs because of insufficient compensation. What’s more, employees who change companies see an increase of 15% on average.
Recap
– What increase to ask for
– Choosing the right time to ask for a raise
– Choosing the right place
– What to say for the best outcome
– What if they say no?
