Donegal Daily Financial columnist Sean McNulty from RethinkMoney.ie this week helps to guide workers through a very sticky situation which we all hope to negotiate with success – how to ask for a pay raise successfully
You’ve been working hard, hitting all your targets, going above and beyond, but yet, you still haven’t received a raise. Well, now might be time to ask for one. The job market is rife with opportunities and employers are worried about the attrition rates (rate of employees leaving for normal reasons like looking for higher pay).
If asking for a raise seems intimidating to you, this step-by-step guide should give you the confidence you need to ask for that well-deserved pay raise.
The preparation
Even if you know that you have been a valued employee at your company, asking for a raise is not the norm; only 37% of workers pluck up the courage to do so. The rest, sit in the back.
It would help if you consider a few factors before asking for a raise. Such as your time in the company, the company’s financial situation, plans for promotion, and your performance quality. If you are just in the door and haven’t really shown any of your full potential yet, I’d hang back a while
When determining your reasons for requesting a raise, consider the value you are bringing to the team, your achievements and the feedback you’ve received during your tenure.
How to Ask for a Raise
Preparation is key but, if you still need a boost of courage, follow these 10 steps and tips which boost your confidence.
Timing
Asking for a raise at the right time will improve your chances of getting one. In most cases, the best time to ask for a raise is:
- After completing a large project
- During performance reviews
- When you receive a fair amount of positive feedback
- When your workload increases
- When your manager is approachable and stress-free.
While asking for a raise during these times makes sense, it’s essential to consider other factors that could affect your chances of getting one. So when deciding when to ask, consider the following questions:
How is the company’s financial situation? Pay raises may not be possible if financial situations are not good.
When does the company conduct its financial evaluation? Following the completion of their budget assessment, employers typically make compensation plans.
How much work does your manager have to do? It is not a good idea to ask for a pay raise when your manager has a lot on his/her plate.
Research the salary ranges for your role in the market.
What exactly is an appropriate raise in pay to ask? Spend some time researching salary ranges in your field to understand how much raise you should ask. You might get a better idea of your potential pay grade by looking at how much other workers in the same industry make.
You could use it in the discussion if most jobs in your area pay more than you do. You can also explore other employment opportunities for a similar position with similar job requirements to know how much other companies are paying to get an estimate.
Highlight your qualification and achievements
Your qualifications and achievements can assist you with building an exceptional case regarding why you’re requesting a raise. First, list all your credentials, including years of experience, education, certifications, and soft and hard skills. From that point onward, record a rundown of your achievements during your business. Be specific with figures, feedback, and any value you bring to the company to avoid underselling yourself.
Also point out where you want to go with the company, and how you will be around for the long-haul. Your loyalty is another reason the raise will be deserved. Obviously, the glossier the picture you paint here, the better it will look/
Be specific with the raise amount.
So, what is a reasonable request for a raise? Even though employers anticipate paying an average of 3% more in 2022, there is no limit on how much your salary can increase.
Asking for a raise more specifically will increase your chances. Doing market research and evaluating your accomplishments will assist you in finding an acceptable range, regardless of whether you will ask for a fixed amount or a percentage increase.
You’ll be ready to meet with your manager now that you know the correct number and how you’ll justify the ask.
Arrange a meeting
Set a meeting with your manager or supervisor as the next step. If you work remotely, the best way to ask for a raise is in person or via a video call, preferably in private. Avoid discussing a potential raise via email or in common work areas.
It is essential to inform your manager of your plans, whether you will be scheduling a separate meeting or requesting a raise during a performance review.
Be ready
It’s time to prepare for a meeting once you schedule one. A plan for what you’ll say before the meeting can help you feel more confident. Collect everything you will present to your supervisor and spend some time practising your presentation. Do a couple of run-throughs, as silly as it sounds, because they do help.
Also, this might be an excellent time to plan responses to questions your manager might ask. Also, be ready for anything unexpected, like cutting the meeting short.
- Start with a good opener.
Begin by clearly stating the meeting’s purpose and expressing gratitude to your manager for their time. Then, it’s time to say that you want to talk about your achievements and compensation.
- Lay Out the Specifics
Once your manager has indicated that it is a good time to speak and that they are open to discussing it, you can proceed with the specifics. Talk to them about the salary increase you think you should get, including the exact amount, how you came up with it, and why you should get it.
- End Your Pitch
After laying out the specifics, end your speech by stating your objectives and requesting a revaluation of your compensation.
Prepare to rock the meeting and get the raise you deserve by asking for one now.
Head up, shoulders back. Dress appropriately and arrive early, just like you would for a new job interview. Bring an open mind and the confidence that you have the necessary qualifications and have prepared extensively for this meeting.
Prepare to answer questions from your Manager.
They might want to know more about your accomplishments or why and how you decided on the raise amount.
In addition to these questions, your manager may also wish to negotiate the raise amount you are requesting. As a result, it is essential to practise negotiating and prepare for various raise amounts that are still within your financial means.
Thank your Manager
After the meeting, thank your manager for their time and for considering your request. Then, send a follow-up email after the meeting thanking them for their time and highlighting key points, such as your main reasons for the request.
Prepare for a Response
You can anticipate waiting to receive a response from your manager immediately. If they say “perhaps,” you can inquire as to whether it would be okay to follow up and plan a meeting in the future to examine the choice. If they say “no,” you should find out why they made their decision and how you can get a raise in the future.
Things to Avoid When Asking for a Pay Increase
You should steer clear of focusing on the below reasons if you want to get that raise
- Avoid focusing on personal reasons.
Instead, focus on your professional goals. When you ask for a raise, focus on your accomplishments and performance that contributed to the company’s growth.
- Asking at The Wrong Time
As suggested, it would be best if you determined the appropriate time to ask for a raise. As a result, don’t ask for a raise when the company has financial difficulties, or you don’t have enough notable accomplishments to show.
- Using the Wrong Numbers and Accomplishments to Show Your Achievements
It’s crucial to demonstrate what you have done for the company to show your achievements with data. However, it would help if you did not take credit for other people’s accomplishments or attempt to make those numbers appear larger or better than they are. You can still talk about how you helped and what your team got done because of you in a team project.
- Don’t undersell yourself
When you ask for a raise, you can shine and demonstrate your accomplishments to your employer. Show how you can be a great asset to the company by presenting confidently and clearly.
- Expressing some unacceptable things
It is best to be cautious with your choice of words and tone while expressing yourself. For example, it is essential to avoid saying things like “I need more money” or “I think I deserve,” in addition to practising a script. Saying such things can have a negative impact on your request.
- The bottom line
Even though 30% of people said they got a raise without asking, asking for a raise is still common in workplaces. Follow our guide on asking for a raise if you believe you’ve accomplished a lot during your employment and deserve it.
Sean McNulty is the founder and Managing Director of Rethink Money Ltd, a financial advisory company based in Letterkenny. Sean’s company is a digital-first advisor with a bespoke software to help clients best manage their financial needs.
For a free consultation feel free to reach out to us at info@rethinkmoney.ie
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