How To Successfully Push for a Bigger Paycheck in 6 Situations
Many employees dread asking for a raise, even if they deserve it. However, knowing when you’re in the perfect situation for a salary negotiation can take the edge off — not to mention help you succeed in making more money.
“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.
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We spoke to a number of career experts about scenarios where the employee might have the upper hand in asking for a raise. Use these tips and tactics for negotiating a better salary.
1. 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 and 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 an area with more opportunities.
2. 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 added responsibilities might add merit asking 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.
Furthermore, your boss might intentionally give you a more dynamic workload to gauge your ability to handle it when considering a raise or promotion.
3. 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 off a notable accomplishment that he or she brings up.
Come prepared. Maybe your boss has never said a nice thing about anyone. McRitchie recommended logging your accomplishments over the year and having the information on hand at the meeting.
If it’s your first review with the company, he advised asking the manager ahead of time how the review meetings are typically handled. You can also ask trusted co-workers for an inside scoop so that you’re best prepared.
4. There’s an Offer Letter on the Table 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 might 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 high performer and valued employee. However, 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 be ready for both scenarios, and prepare your finances for a potential job change.
5. The Company Is Doing Well and You Can Show You Contributed
If the company is performing highly and you can show how your efforts have contributed to the success, then this is an excellent time for salary negotiation, according to Cheryl Palmer, a career coach and founder of Call to Career.
“Before talking to the boss about a raise, I suggest 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 [are] 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 cost-saving 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.
6. 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 Amy Cooper Hakim, an industrial-organizational psychology practitioner and consultant at The Cooper Strategic Group. “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.”
Knowing you’re valued is a major confidence boost. A major blow to morale would be getting denied after asking for a raise. 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.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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