5 Proven Ways To Improve Your Chances of a Bigger Paycheck
Asking for a raise when you're pretty sure the answer is no, in this economy, feels like showing up to a budgetary knife fight with a spreadsheet. However, the odds aren't always as bad as they seem, and how you ask matters as much as when.
In fact, job experts at Procurement Tactics said between 66% and 78% of people who actively negotiate for a higher salary when they ask for a raise are successful. On a side note, that same data showed over 50% of employees still accept initial offers without asking for more money.
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It’s time to dust off your quantifiable value to the company and boost your odds of getting a raise. Here's how.
1. Research Salary Data and Know Your Worth
Salary negotiator Jeremy Barnyak advised employees not to use their current compensation as their only benchmark for value. Instead, research what people earn in roles similar to yours. Use reliable sources such as Payscale and Salary.com, both of which publish their data methodologies.
Knowing what others are paid can help you better assess your value. Plus, it helps put you on the same page as your manager by preparing a list of contributions you've made to the company (using numbers whenever possible). Emphasize the value of any new business you brought in, the cost savings you achieved or the projects you launched.
Look for the best possible match for your position, seniority level and location, as all of these factors significantly affect market rates. Gather as much data as possible, including median salary, top and bottom quartiles and pay range.
2. Ask for Advice
Barnyak also reported to Business Insider that asking others to share negotiation tips and, if appropriate, their own compensation can help your cause. If someone you know makes a certain amount in a similar role at a competing company, you can use that information as leverage. Be sure to account for context, such as differences in your experience levels and skillsets.
3. Have a Plan
According to the Anxiety and Depression Association of America, constructive planning can help you feel less nervous about a stressful event. It gets your mind out of worry mode and gives you a sense of control over the situation.
You may not be able to control the outcome, but you can plan how you'll respond in various situations. At a minimum, know what you'll do if your boss or the human resources representative:
Says "no" without explanation
Offers a raise that's below what you need
Suggests alternative non-monetary compensation, such as more paid time off
Questions whether your performance merits a raise
The more prepared you are, the more professionally you can respond in the moment.
4. Avoid Ultimatums
While it helps to have a minimum acceptable salary in mind, it's dangerous to frame it as such, Barnyak said. You don't want to say or imply that you'll hand in your notice if you don't receive a raise of at least a certain amount.
An ultimatum can feel manipulative and put you in a difficult position. Either you follow through and resign, or you backpedal, and your employer starts thinking that you'll quit at any moment.
Instead, frame your target number with confidence: "Based on my research and contributions, I'm targeting an annual salary of $X."
5. Don't Fear the 'No'
Simply put, don’t avoid asking for a raise because you are too nervous to do so. It’s not being greedy; it’s getting paid appropriately for your time.
As Barnyak pointed out, "Closed mouths don't get fed. The fastest pathway to not getting more money is to not ask for it." As long as you approach the process respectfully and honor your supervisor's answer, you usually have little to lose by asking.
Ellie Diamond contributed to the reporting for this article.
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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