Raise, Next—Don’t Just Ask for Money



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.