Q. I
haven’t had a decent raise in almost five years—just the
usual three to four percent that everyone gets. I think I deserve at
least 10 percent. How can I ask for it—and get it? —Tom
R.
A. In
these times of tight budgets, just getting three to four percent is
pretty good. Many companies have had to freeze all pay raises, just
to stay in business. But it’s possible that your salary is
significantly lower than what’s paid for comparable jobs in
other companies. Your ability to show that you deserve
a hefty raise is the starting point. Find out the pay range for jobs
comparable to yours. Search the Internet with words like, “comparable
salary.” One excellent site is salary.com.
It’ll give you salary ranges for hundreds of jobs in your
city—by job title.
OK—your
research shows that your salary probably is
10 percent lower than the norm in your area. Now ask yourself if
your company is doing well enough to give you a 10 percent raise. If
you know for sure that others in the company are getting good raises,
you may have a chance. Check your past two or three performance
reviews. If you’ve received high praise, and only a few
suggestions for an improved performance, you’re in good shape.
Fix
Any Problems
However,
if you find ratings or comments that describe your performance as
simply “Meets Expectations” or, worse, “Meets Some
Expectations,” you don’t have much of a chance in getting
a substantial raise. Some companies even argue that “Meets
Expectations” is a good review, but don’t connect it with
a significant raise. If your performance isn’t rated
“Outstanding” or “Exceeds Expectations,” list
what you have to do to fix any performance problems. You may have to
postpone your request for a raise for at least a year until you
correct any behaviors—or even perceptions—that management
has noted in your appraisal.
Talk
to Your Boss
Ask
for time to meet personally with your supervisor to get an update on
where you stand in management’s view. (But don’t talk
about a raise until you have all the facts and have planned your
presentation. Just focus on your performance, and find out where you
stand.) Then develop a strong action plan to improve your performance
dramatically. And start a strong internal campaign to sell yourself
to everyone as a valuable employee. You may even want to ask for
some extra or tougher assignments.
How
Did You Make a Difference?
With
strongly positive past appraisals, you can now plan your request.
List all your accomplishments by year, along with the positive impact
they’ve had—ideally on the profitability of the company.
You’ll have to demonstrate that you’ve earned a
better-than-average raise—that your efforts produced a
significant profit—either by generating new income, or by
cutting costs significantly. If you have a job that produces results
that are hard to measure by absolute numbers, summarize the
observable behaviors that describe your excellent results. Get
testimonials that clearly document your contributions from key
influential people in the company.
Plan
/Practice Your Presentation
Plan
your presentation in a logical, organized way. Example:
Say
how pleased—and why—you are to be working for this
division, department, company.
Express gratitude for
management’s continued support and interest in your
professional growth—especially
with this company.
Describe your
contributions since you last had a major raise, and their
positive impact.
Summarize your plans for
future growth and contributions to the company, and where you’d
like to see yourself in the company in, say, three, five, and ten
years.
Now
ask for a specific, realistic amount. Have industry or other
research data to back up your request. Ask in a positive, supportive
way, with no threat or pressure. And practice the presentation with
a friend who will give you honest feedback on how you present your
case.
Handling
a “No.”
There
are usually only two reasons why your boss might say “No.”
Either you don’t have enough evidence as to why you deserve a
raise, or there really isn’t money available. If it’s the
first reason, you have three choices: get the evidence to change the
perception; accept the situation; or look for another job. If it’s
the second, work with management to arrange a time when the money
will be
available.
If
budgets really are tight, suggest receiving a well-deserved “raise”
in other ways: more vacation time; stock options; more people to
delegate your work to; paid schooling (like an MBA); more travel for
the company; higher company contribution to your 401K plan; more
responsibility (for an even greater raise next time around.) Whatever
the situation, always show enthusiastic support for the company and
the management. And never
threaten to leave the company.