For the past few years, many people have been afraid to ask their employers for more money. Most people have been grateful just to have a job and are reluctant to do anything that could give their employers reason to replace them with someone else.
Now that the economy is improving and the job market isn’t quite as tight, you’re eager to earn more money — and that usually means that you have to ask for it. If you’re like most people, just the idea of walking into your boss’s office and asking for a raise is enough to give you hives.
If you honestly deserve a pay increase, though, you owe it to yourself to schedule that meeting and make the request. You also owe it to yourself not to make serious blunders that could not only jeopardize your chances of getting more cash but of even keeping your job.
Mistake #1: Not Asking for What You Want
Asking for a raise is a lot like negotiating your salary when you first took the job (you negotiated your salary, right?), but you do not want to look like a deer in headlights when your boss asks “Okay, how much more do you want?” Instead, prepare to ask for an increase based on your research on average salaries for similar positions, your company’s policies on pay raises and your performance. Don’t be afraid to ask for more than you expect to get — that’s negotiating 101 — because you just might get it. In other words, if you’re hoping for a 5 percent increase, ask for a 10 percent raise, because you might get a 7 percent boost.
Mistake #2: Not Knowing What You’re Worth
Remember when we said to do some research to determine what others are earning? Well, when you do that, make sure you’re being accurate in your calculations. Someone working in Manhattan is going to earn more than someone in Des Moines, even if he or she is doing the same job. When doing your research, make sure you are taking factors like your geographic location, your company size and your actual workload into consideration. Also, consider what you bring to the table. For example, do you have an advanced degree or certifications that others in your department do not? Do you bring skills to the table that save your employer money? Try to quantify them to reach a figure that recognizes your worth without being unrealistic.
Mistake #3: Not Offering Evidence
Very rarely will a request for a raise be met with “Sure, you’re right. Effectively immediately, you’ll earn 5 percent more.” In most cases, you’re going to have to prove your worth to score a bigger paycheck. Approach your request as you would a performance review, and be prepared to share concrete evidence of your achievements and worth to the company. Quantify your performance — “I saved the department 5 percent of the budget by catching a mistake,” or “I’ve exceeded my sales targets by 15 percent.” Use a copy of the company’s mission statement to frame your report, showing how your performance and your commitment to the team help the company fulfill its mission.
Mistake #4: Giving Ultimatums
It is never a good idea to threaten your boss. You might feel that unless you earn a bigger paycheck, you need to find a new job, but never tell your boss that you will quit if he or she doesn’t give you a raise. That never works — and it’s very likely that your boss will call your bluff and send you packing. Even if you have another job offer on the table already, don’t let on to your boss that his or her decision will be the deciding factor in whether or not you stay with the company. Just make your case and be prepared to move on if necessary.
Mistake #: Not Being Willing to Negotiate
We mentioned negotiating before, but it bears repeating: You must go in to the meeting with your boss prepared to negotiate — and not just for a bigger salary. There’s a chance that your boss won’t be able to offer you more money, but might be willing to provide other benefits, such as a flexible schedule, more time off or another benefit, like a new mobile device or gym membership. Come prepared with ideas in case you can’t earn a bigger paycheck that will help you remain satisfied.
Asking for a raise can be nerve-wracking, but if you’re calm, prepared and reasonable in your requests, there’s a good chance that you could see a few more dollars in your next paycheck.