The first key to successfully asking for a raise is to understand the market value of the position you hold, which can be found by talking with recruiters or using job search sites that provide salary information. A reliable source should include the average salary for a given position, the cost of living in different cities, and information about wages in various industries.
Once employees fully understand what they are being paid throughout the industry, they will be able to communicate their worth with employers when requesting a raise. Employees must have this knowledge before negotiating salary because it will give them a clear idea of their value and explain why they deserve higher compensation.
Employees should also prepare for their raised discussion by creating a list of reasons they believe they have been undervalued, including anything that demonstrates their performance exceeds expectations. Employees may even want to develop a list of evidence that employers can use to determine if the employee’s performance justifies a raise.
Employees should not be afraid to challenge their employers when asking for a raise, as it demonstrates confidence and a willingness to improve. However, employees must remember that they are entering formal negotiations, so their approach must always be professional and respectful.
It is also important to remember that salary is only one factor when determining whether or not an employee receives a raise. Other factors can include the position, how long the employee has been with the company, and even personal feelings about the individual.
Employees should not attempt to negotiate salary until they have been at their job for six months or one year if the economy is weak. This allows them time to understand the employer’s goals and expectations better and demonstrate that their performance has met those standards.
Employees should also wait until they have received a performance review, as this will provide them with clear indicators of their value to the employer.
Once employees are confident of their ability to meet or exceed the expectations of employers, ask for an increase in salary during formal reviews or informal conversations. They mustn’t talk to co-workers about their desire for a raise, which can harm how others perceive them.
Employers should never offer employees raises before they can discuss the appropriate salary increase in an annual review meeting.
When employers offer salary increases without being asked, there is no guarantee that the employee will accept the offer since it is not contingent on anything the employee asks for. This can lead to bad feelings between employers and employees.
Employers should never ask their employees what they think is a fair salary increase. This engagement will likely arouse a sense of entitlement within the employee, eroding future performance reviews.
Employers should also avoid asking employees if they have been talking to their friends about salary because it could indicate that they have been discussing compensation with others.
Employers should never give out raises without clear justification.
When employers decide who receives a raise and why they receive it, they become more transparent within the organization, encourage co-workers to produce better work, and prevent some employees from believing they are not being treated fairly.
Employers who are transparent about what is required to increase salaries within their organizations will retain employees by showing that they are committed to rewarding good work.
Employers can determine whether or not employees deserve raises through performance reviews. Employers should openly communicate what the employees need to do to earn a raise in these conversations potentially. If employers decide against giving a raise, they should be prepared to explain their decision based on the evidence from the performance review.
When asking for a raise, employees should always be ready to provide evidence about their performance. This can take the form of numbers, statistics or comparisons between other employees who are being paid more than they are. Evidence to support claims should be verifiable by the employer.
Employees should also avoid asking for raises when employers feel financially restricted because this could indicate the employee doesn’t value the company’s financial situation.
When asking for a raise, employees should ask about salary ranges at their employer to know what may be possible within the organization. Employees mustn’t become argumentative with employers during negotiations because this reduces the likelihood of a raise.
When Do You Get a Raise
What determines how often you get a pay raise? Is it your performance, type of job or the employer’s budget at the time?
The first and most obvious answer is your performance. The more you accomplish, the more likely your boss will be willing to reward you with a raise or other compensation.
Your job type can also affect how often you get a pay raise. Generally speaking, those who work as salaried employees such as teachers and managers should see raises more often than those who work as hourly mechanics and waiters.
That’s not to say that you can’t ever get a pay raise if you’re an hourly employee; it just means there may be more obstacles in your way. For example, if the economy is poor and money is tight for most people –including your employer- it will be hard to get a raise. Some employers may even freeze or reduce hourly wages during this time, which is why many people turn to the alternative option of commissions.
On top of your job type and performance, another factor determines how often you get a pay raise: your employer’s budget at the time. While it may seem like a simple answer, it’s the only excuse that no one will fight you on when you ask for a raise and can’t get one. That said, there are ways to make sure your performance is noticed and continues to improve to increase your chances of getting a pay raise.
If you feel like your employer isn’t giving you a fair raise, here’s what to do.
Foremost, determine whether your frustration is based on a lack of understanding or fairness. If it’s the former, understand that your employer has a budget and until something changes within that budget, there won’t be any more money for raises.
However, if it’s the latter, you’ll have to think of a way to show your boss how much more money you can bring in now that you’re better at your job. Some people recommend asking for a raise as soon as possible to avoid losing out on potential money. Others say it’s best to wait until next year or continue performing well and hope for the best.
If all else fails and your employer isn’t budging, ask for a promotion instead of a raise. While it won’t be as personally rewarding as more money, you will still be compensated fairly, and your employer will see your increased value to the company.