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Know How to Approach the Boss for a Raise?

November 2, 2011 by Thomas

I have a friend who I’ve known for nearly two decades and I can say without a doubt that he’d give you the shirt off his back.

That being the case, there is one action, or I should say lack thereof on his part, that makes me shake my head.

Not only did he take a major pay cut several years ago, he’s afraid to ask his boss for a raise.

Now granted, we all know that times are tough and there remains much debate as to whether or not we’re headed for another recession. Still, a man has to eat and keep a roof over his head, so asking for a raise is something that should never be out of the question.

As it turns out, he and I have had this discussion numerous times and he continues to claim that he won’t get the raise, so why bother wasting his time. Okay, I know I need to keep my nose out of other individual’s business, but it pains me to a see a good friend give up the fight, if in fact he ever fought to begin with.

While there is a good chance knowing his boss he will not get the raise, what does it hurt to discuss it, especially since it has been several years since he saw an increase in his hourly rates?

This friend works as hard as anyone I know, and he certainly is not being properly compensated for his efforts. In essence, he is afraid that he’ll get the boot if he goes to his boss seeking a raise. While I respect and understand where he is coming from, it is something that I would handle differently.

That being said, how should you go about seeking a raise when in a similar situation?

Among the things to consider are:

  • What is a fair and reasonable request? – For many employees, they do not know what their value is to the company, including when and how to seek a raise. Ask around to people in comparable positions as to what they sought, do some online research as to what the typical salary is for your kind of work, etc. Most importantly, get a handle on the company’s financial picture and if now is the appropriate time to seek more money;
  • Rehearse your sales pitch – It is important to not wing it when talking to the boss regarding a raise. Just as you likely rehearsed your job interview, it is a good idea to prepare for the request to get a raise. If you have a trusted family member or friend who will give you an unbiased reaction, make your raise pitch to them and get feedback;
  • Take a look back at recent history – When it comes to getting a raise, timing is often the key to success. In the event the company suffered a financial setback recently or you had an issue with a co-worker that got around the office, don’t exactly go rushing in the boss’ door for a raise;
  • Document your achievements with the company – While many experts will say that it is best to wait at least a year after you’ve been hired to seek a raise that does not mean you can’t be compiling your achievements since you started your job. Without recording that you showed up for work on time for three months in a row, take note of any special accomplishments like spearheading a project, overseeing efforts to save the company money, etc. The achievements are good tools to use in your favor when you seek the salary increase;
  • Be prepared for possible rejection – Asking for a raise is a little bit like asking someone out on a date. You may come out a winner or you may go home rejected. There is typically a 50-50 chance you will get the raise, so don’t pout if the outcome is not good. The boss may just be delaying giving you a raise until things are a little better financially at the company, so don’t suddenly tail off on your workload etc. or office morale if the raise is denied this time around;
  • Show appreciation either way – Given the fact that 2011 remains an employer’s market, it is important to show appreciation to the boss for having the raise discussion in the first place. Companies are not obligated to give out raises on a regular basis, so appreciate them when they come along.

Asking for a raise is something that most employees equate with going to the dentist or having to spend time with their mother-in-law.

If you’re in the position where it is time to seek a raise, make it your job to handle it the right way so that your job is never placed in jeopardy.

Photo credit: ledgerlink.monster.com

Dave Thomas, who covers among other subjects’ background checks and business credit cards, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Filed Under: Business Life Tagged With: bc, employees, pay raise, sales pitch

How NOT to ask for a raise

October 14, 2010 by patty

by Patty Azzarello

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When I was in my early 20’s I learned an important lesson.

I was working in a start-up company and had gone 3 years without a raise.

The wrong way…

I went to the CEO and asked for a raise.
He said, Why?

Among other things, I said that I had been working for 3 years without a raise, and that I had taken on more and more responsibility over that time, and that I always delivered and often exceeded expectations. I told him it was becoming un-motivating to feel I was working so hard and not moving forward in pay, and peers in other companies were making more money than I was…

He said, I don’t’ care. It’s not my problem. I only care about what the cost is to replace you, and I could replace you for your salary or less – so no raise.

Your job is a contract with your company

You don’t get a raise for good attendance, or because you feel like you deserve one.

You earn a raise by increasing the value of your contribution.

And if you want to get that raise, you need to re-negotiate your contract on terms that are relevant and valuable to your company, not based on what you want or need. And you have to ask.

1. YOU Drive the process

If you are uncomfortable having this conversation with your boss either get comfortable with it, do it anyway, or don’t be disappointed if you get overlooked.

Know that you are at a disadvantage by not having this conversation.

It is vitally important that you and your boss share a common view of your performance and your expectations for promotion and compensation, even if your boss does not drive this discussion.

Of the 20-something years I worked in a corporation for a boss, I did my own performance review 17 times, just to make sure that there were never any disconnects.

2. Understand how you and your role are perceived

It is important to know if you are perceived as a high, average or low performer. Don’t ever guess about this. There should never be any surprises about this. Find out.

Even in an economy where there are not a lot of raises going around, you still need to be communicating with your boss about your performance and what it is worth, so when there is money, you have done all the groundwork.

Also make sure you know how much your ROLE is valued by the company. For example you don’t want to be the superstar performer leading the support team for an obsolete product. You may be great, but need to move into a higher valued role to get a raise.

Once you confirm that you are a high performer then go on to build your case for what you want. If you are not perceived as a high performer – fix that first. Understand what it takes, and focus on adding value, before you start asking for things.

3. Discuss your raise as part of a business outcome

The basic premise here is:
If I do this, what is it worth to the company?

Here are some things you can say:

  • Last year, this is what I accomplished and this is my current compensation.
  • I would like to raise the bar for the upcoming year, and deliver more value to the company.
  • And If I were to add these additional business outcomes, exceed these goals, etc, would that be worth more to the company? How much more?
  • What business outcome would I need to accomplish that would be worth this level of pay, or this promotion?
  • Can we agree that if I deliver this, you will give me that?

4. Follow up on the specfics…

  • 9 months ago, we agreed on performance objectives which if accomplished would
    result in increased compensation.
  • I believe I have delivered on all of these and then some, and I also took on this additional project which has benefited the company by increasing our margin on this product line.
  • Do you agree? Can I get your feedback on my accomplishments? … (Assuming it’s very positive then…..)
  • Will you be increasing my compensation for next year, per our agreement?

If the answer is, No, for some reason outside performance, you need to get a next agreement.

As long as you keep focused on business outcomes, you are on the high ground.

  • If your hands are tied right now, I would like to understand the timeline of what is possible, and if it’s not a raise, is there [stock, bonus, promotion, etc.] that could be possible?
  • I’m very motivated, but I think you can understand that at some point this level of performance will be hard to keep delivering if it is not recognized by the company, what do you advise?
  • You have my commitment to keep delivering for you, but I can you help me understand what I can expect over time in terms of the company being able to hold up our prior agreement about my performance and compensation?

And my personal favorite…

  • If you were in my position, how long would YOU keep performing at this level with my current compensation?

What has worked for you?

If you have examples of how you or your people have asked you for raisies, and what works and backfires — please share in the comment box below!

—–
Patty Azzarello works with executives where leadership and business challenges meet. She has held leadership roles in General Management, Marketing, Software Product Development and Sales, and has been successful in running large and small businesses. She writes at Patty Azzarello’s Business Leadership Blog. You’ll find her on Twitter as @PattyAzzarello

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Filed Under: management, Successful Blog Tagged With: bc, LinkedIn, Patty Azzarello, pay raise, promotion, salary increase

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