You put in long hours. You hustle. You do your job better than anyone else. Of course you deserve a raise. Now, you just need to convince your boss.
Employees and employers often disagree about when a raise is appropriate — and they almost always argue about how much more money should appear in a paycheck.
Before you focus on how you should ask for a raise, know that the real work begins long before the conversation starts. The research you conduct about your company, your industry, and your performance can inform how much you ask for and how you support that request. Do your homework and speak with tact, then that money will flow right into your pocket.
Let's show you how it works.
Research Your Industry
Overall, your salary range is dictated by the industry you work in, as well as the position you hold. Your paycheck also reflects the cost of living in your community.
You'll need to dig into the data to understand your current salary. Are you making above average right now? Or is your employer getting a great bargain?
The United States Department of Labor pulls salary information from employers nationwide. All of that data is grouped by industry and job title. If you'd like to find out how much people with your job make each year, this national data can help.
But these averages don't give you the complete picture. Employers also look at how much it costs to live in your community when they develop a salary range. They can add to or subtract from that national average when determining how much you should make.
To get the real scoop on your industry in your area, you'll need to have some conversations about money.
Industry Research Tips:
Join industry groups. Search for nonprofit educational communities in your area that can connect you with peers. Head to a meeting and open up the salary conversation.
Seek out educational opportunities. Every time you take a class about your industry, you're surrounded by peers with similar jobs. Ask them how much they make each month.
Link up with alumni associations. Colleges and universities love to connect with former students. (That's how donations happen!) Reach out and ask about local meetings in order to speak to other alumni.
Connect online. It's best to hold money talks in person and in private, as your research could look a lot like job hunting. But if you can't find anyone to talk to in person, join similar groups online and ask about salaries there. Remember to focus on connecting with people who live near you.
Research Your Company
You've grabbed national and local data, so you have a good picture of the salary landscape, but your employer might be an outlier. Perhaps people in your company get paid more because the industry is competitive and your boss wants the best people. Perhaps everyone in your company is paid less due to a shortsighted manager. To really determine your chances of a raise, you'll need to understand your company.
Think back to the moment you accepted your job. Did the post you responded to come with a salary range? If so, you'll know just how much the officials in your organization think someone in your position should get paid. If you're at the top of that curve, your request for more money could get denied before you're even done asking for it.
You might think you belong at the top of a salary range, but your employer might disagree. Companies are encouraged by organizations like this one to develop salary bands based on performance.
A typical band looks like this:
Level 1: Beginner - You've just entered the field, and you have a lot to learn about how to do this job the right way.
Level 2: Intermediate - You've developed a few core skills, but you're still learning a lot on the job.
Level 3: Seasoned - You understand your role very well.
Level 4: Senior - You can do your work without much supervision.
Level 5: Leader - Others come to you for help or advice, and you work hard to help the company improve.
Level 6: Critical - You're critical to the success of the company, and you're crucial in developing long-term plans.
With each jump on the scale, the salary rises. Job titles may never change, and your day-to-day work may not shift. But your value to the company has moved, and that means the organization is willing to pay you more.
Think about your performance, and ask coworkers you trust about how you’re seen both inside and outside of the company. If you’re rising in importance, your salary should reflect that.
Think of the Right Number
With all your research complete, it's time to develop a clear picture of your salary in the future. How much should you ask for and how much are you likely to get?
Employers often use the cost-of-living adjustment from the Social Security Administration to set raise baselines. That number is tiny. In 2018, for example, it was about 3%.
Not surprisingly, The Fiscal Times reports that most employers set raises at about 3%. If you're doing your job well and hitting all your performance deadlines, you might get offered this small token of thanks.
Based on your research, you might determine that a 3% pay hike is appropriate. But you might find that it's far too low for your industry, your company, or both.
You might also find that you deserve more due to your:
Education. Did you complete a degree or earn a certificate this year? That could make you a more valuable worker.
Length of service. The years you spend with a company translates into a critical understanding of the culture and your clients. That might be worth paying you more.
Key contributions. The projects you worked on and the revenue you generated might make your salary seem small.
Enhanced workload. Taking on new projects, responsibilities, or deadlines should mean getting more money.
No matter what you think merits a bigger paycheck, be prepared to defend it. You'll need numbers, interviews, hours worked, or some other bit of data you can cite as you talk.
Also, no matter how much you think you're worth, experts suggest that a 10% hike over your current salary represents the peak. Ask for more, they say, and you're really asking for a new job title or even a new position. If you're a stellar worker performing at the top of your game, 10% is the maximum you can ask for.
But is that really all you can ask for? Not necessarily. In a Gallup poll, 41% of workers said they were happy with their salaries.
They also expressed dissatisfaction with the following work benefits:
Flex time
Vacation benefits
Workplace recognition programs
Retirement package
Health insurance
If you know you can't get more money from your boss, perhaps negotiating for more paid time off or a few work-from-home days could help you feel compensated.
How Should You Ask for a Raise?
You've done your homework, set a number, and are ready to make a play for a raise. By following a few basic steps, you can make sure the talk runs smoothly.
First, set up a meeting. You can have the salary talk during your formal employee evaluation, or you can set up a new appointment to discuss the situation. Research suggests that in-person meetings are 34 times more successful than email conversations, so don't sell yourself short. Talk this through in person.
When the conversation swings to your salary, you must:
Express gratitude. Point out how much you enjoy your work, the company, and your relationships with coworkers.
Define your value. Cite your accomplishments, and support your statements with data. If you brought in 50 new clients, turned around orders 75% faster, or answered 98% of phone calls, say that.
Provide your number. Don't make your boss guess about what you want. Toss your new salary out there.
Expect a delay. Your boss may not hold the power to boost your salary. Be gracious if research is required.
Your conversation might sound like this: "I'm so thankful to be part of the amazing sales team here. We work hard, and it shows. Last year, I brought in about $10,000 in new business, and this year, I plan to do even better. Can we consider a 10% pay raise?" After your opening sentence, your boss probably has a thing or two to say.
While that happens, make sure you don't:
Give an ultimatum. If you threaten to walk away without more money, your boss might consider that a good deal.
Get defensive. You know what you're worth. If your boss doesn't see it, you haven't made the case (yet).
Cave too quickly. If your boss can't meet your salary, can you get additional perks? Can you reassess in a month or two? Don't be a pushover.
Disclose personal details. Your boss doesn't need to know why you need more money. Remain professional.
What Happens Next?
Imagine that you've uncovered a big gap in what you're making and what's expected in your industry. Now, imagine that your boss has no interest in kicking up your paycheck. It's probably time to find a new job.
We can help! We pull together job listings from all across the country, and with our searchable database, it's easy to find a position that's right for you. Don't let your boss stomp on your dreams. Let us help you find what's next. Search Joblist now!
