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How to ask for a pay raise

Which person below is more likely be on a path to promotions and raises?

In a conversation with your supervisor:

  • Person A, “I work harder than anyone else around here. Give me a raise right now or I’ll look elsewhere!”
  • Person B, “I would like to become more valuable to the company. What skills, certifications, degrees, performance, and experience do you recommend for me to advance in the company?”

In my opinion, Person B has a far better long-term strategy to earn more money through gaining more responsibility and corresponding promotions. Person A is more likely to be viewed as a whiny complainer, and hopefully they’ll soon quit on their own and be replaced with someone more compatible with the company.

There are 3 elements to getting a Pay Raise and all of them need to be addressed before you ask for a pay raise. Too many employees fail to do this and end up frustrated or look to quit out of anger when their supervisor refuses to give them a raise.

  1. Employer’s Perspective

It is nearly certain that your employer has a budget and your supervisor has salary limits. For your current position, in your industry, in your geographic area, what is the high/low pay range? And now, where are you within that range? If you’re in the upper quarter of the salary range, that can be a problem because your supervisor can replace you with someone new and save a lot of money. Scores of people in their 50s and 60s are laid off for this exact reason. They are in the upper 10th of the salary range and there are too many qualified people to replace them at a far lower salary. (I know someone who relentlessly badgered her weak-willed boss over years to ratchet up her pay far beyond her average performance. But then a new supervisor was hired and once he discovered her average performance and prima-donna salary, she was let go.)

  1. Your Relative Value

Do you consistently exhibit traits worthy of moving up in the company?

How would someone objectively compare you to your co-workers?

Do you volunteer for more responsibility or duties?

Do you easily adapt to new systems, protocols, and changes?

Are you a high or low-maintenance person at work?

These behavioral traits, and many more, are what your supervisor will consider determine who to offer pay increases and promotions vs. those to pass over.

  1. General Negotiations

Your exact pay is a function of a negotiation so it is best to have an idea of the negotiating authority of each side. Does your supervisor believe that you are easily replaceable or are they desperate to keep you? If you’re viewed as easily replaceable, then perhaps you have failed to distinguish yourself or you’re working somewhere where you cannot distinguish yourself; maybe this is the wrong company for you. Sadly, about a 20% of all managers are unqualified for their position. Do you wait it out until they are moved, or apply for positions in a different department, division, or company where you’ll be valued and respected?

When you’re initiating a discussion about a pay increase, the strongest negotiating position is to actually have a job offer from another company. If your supervisor isn’t interested in offering a raise or at least a career development plan, then you have the ultimate bargaining chip – to walk out the door.

Viewing a pay raise as a single confrontation with your boss is a poor way to address it. The best perspective is to have ongoing discussions throughout the year on career development and paths to promotions, combined with knowing your value in the marketplace.

The post How to ask for a pay raise appeared first on Financial Literacy.



This post first appeared on Financial Literacy Book, please read the originial post: here

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How to ask for a pay raise

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