How to ask for a raise without sounding greedy
THE STACK #19Quick question, is your salary keeping up with inflation?
I know you're tired of hearing me talk about inflation, but this is the reality of the world we live in today.
You might think, "Sheesh, I'm just lucky I have a job right now and didn't get laid off."
But the truth is, if your salary doesn't keep up with inflation, things will get tight pretty quickly.
In our previous issue of THE STACK, we talked about how one of the fastest ways to make your income work for you is by ensuring you get the maximum you can.
In today's STACK, I will share how to ask for a raise to ensure you maximize your income.
THE STACK
Tip #1: Look at the company's earnings
Most companies issue an earnings report every quarter.
If the company has been performing well, it means that it will more than likely have a budget for a wage increase.
Look for the number of sales/revenue, profits and how much new business they acquired.
If these are trending upward, that's a good sign.
If it's trending downwards, it means there's trouble on the horizon.
This might also indicate that "budget cuts" might start soon, a.k.a layoffs.
Either way, it may be time to update your resume and look elsewhere.
Tip #2: Keep a list of your accomplishments
Keep a list of every project you've worked on.
Note your role in the project, any problems you faced, how you helped solve each problem and the results achieved.
Keep track of data example, the number of sales, percentage of defect decrease, revenue generated, cost reduction etc.
Numbers don't lie and are the best way to sell your case.
Tip #3: Go shopping
Find out what your company's competitors pay their employees for similar job roles and experience.
This will give you an idea of the expected range you should be asking for.
Check websites that publish salary information, such as:
▪︎Glassdor
▪︎Fishbowl
▪︎Payscale
▪︎Indeed
▪︎Salary.com
▪︎LinkedIn
▪︎Jobbank
Tip #4: Timing is everything
Ask for a raise when the timing is right.
The wrong timing could be:
✘When your team or manager is under pressure for a delayed or underperforming project
✘The company is going through a major crisis
✘The end of a fiscal year when department budgets have been depleted
✘When the company is actively laying off employees
Asking for a raise when you're behind on a project, or the company is going through a significant crisis shows poor judgment, and you will most likely be turned down.
The right timing could be:
✔︎When the team successfully completes a project
✔︎Company just reported a good quarter of earnings
✔︎Things are running normally
✔︎Start of a new project
✔︎You got assigned a new role
✔︎A few months before the start of a new fiscal year, when department budgets are being reviewed for approval
Tip #5: Book an appointment
Book a meeting with your manager for a date to discuss your salary review.
Let them know the purpose of the meeting, so they can also prepare and are not blindsided.
This is not a discussion that should be had by the water fountain or when you bump into them in the bathroom.
Tip #6: Go in prepared
This is an important meeting, and you will need to be ready.
Put a few slides together to create a visual presentation.
Have a copy printed out for your manager.
This will help get your point across much faster.
◦Start with all the projects you've worked on
◦Include problems you faced and how you solved them
◦Include results from your projects
◦Focus on ways you've helped the company succeed
◦Use numbers, graphs and charts
◦Add any positive feedback you received from team members, co-workers, other managers etc
◦State why you deserve a raise based on the accomplishments
◦Give a firm number and justifications for that number
◦Keep it short and factual
Tip #7: Give them time to process
Let your manager know that they don't need to give you an answer immediately.
This helps relieve the pressure and gives them time to review your request.
Give them a copy of your presentation so they can review it in more detail.
More often than not, they will need approval from HR for the request or multiple sign-offs, which may take time.
Ask for a time frame when you expect to hear back from them on a decision.
Tip #8: Follow up
If you haven't received a decision by the timeframe they gave you, follow up with your manager.
If the decision is no, ask for feedback on why your request was denied.
This could be because of reasons out of their control.
Ask when will be a good time to revisit your request.
Follow up!
THE TOOL
BOOK RECOMMENDATION
Getting to Yes by Roger Fisher gives a detailed approach to how to negotiate an agreement without giving in.
THE ACCOUNTABILITY
Start a Google doc for your accomplishments.
Break it into four main sections.
Section 1: List projects, details of the project, goals, start and end date
Section 2: List major problems your project faces and how you/your team solved those problems
Section 3: Use this section to track numbers and results from each project
Section 4: Update this section whenever you receive positive feedback from anyone at the company. State the feedback they gave, what it was about and who gave the feedback.
Pro-tip: This document can also serve as a reference to update your resume, and anytime you have a job interview.
THE COURAGE
THE KNOWLEDGE
Did you know that salary and compensation mean different things?
SALARY
This is the amount of money paid by an employer based on the work performed by an employee.
It is based on the number of hours in a workweek determined by the company (example: a 40-hour workweek)
It's the baseline pay a worker will receive each year.
COMPENSATION
This combines your salary and other benefits that have a monetary value.
This includes benefits such as:
●Bonuses
●Health benefits
●Paid time off
●Defined pension plan
●Defined contribution plan
●Profit sharing
●Stock options
●Company vehicle
●Wardrobe allowance
●Meal stipends
●Phone/internet reimbursement
●Paid travel
Pro-tip: If your request for a raise is turned down, you can negotiate aspects of your compensation such as extra time off, stock options etc.
That's it for this week's STACK, go forth and ask for that raise, and be sure to share your win so I can celebrate with you.
Talk to you next week,
But until then...Keep Stacking!
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