May 27, 2012

Five Points When Negotiating a Raise

Raise NegotiationAsking for a raise is rarely easy. Here are a few tips: 

  1. Make a business case. Pay raises are not about righting a wrong, they are about providing employees with compensation related to the value they provide to the company. Keep your points business-related.

  2. Understand the rules of pay in your company. While it might seem like your pay level is unfair relative to others in the organization, pay equity is not a part of all companies’ pay philosophy. You don’t have to abide by this, but make sure you understand where your company positions itself on the issue.

  3. Understand how you add value to the organization. Whether it be the years of experience, your attitude, your success record; all of these things have monetary value and are part of what’s compensated.

  4. Come armed to discuss your track record. Relatedly, anticipate the conversation months in advance and do extra things to justify the raise.

  5. Understand the value of good timing. Let’s face it, just because you might be owed a raise, doesn’t mean you’re going to get one if you ask for it the day after widespread layoffs go into effect. Bosses are human; they will hear messages to greater or lesser degrees depending on the situations in front of them.