Salary and Promotions

Don’t Let a Roadblock Derail Your Raise Negotiation

roadblock your raiseYou’ve done your homework, booked the meeting with your boss and prepared yourself mentally. You’ve made the pitch that you are well deserving of a raise based on your performance, progress toward your goals and value to the organization.

Then your boss throws you a curve ball, “So, Peter, what’s happening? Ah, now, are you going to go ahead and have those TPS reports for us this afternoon?”

You are unsure where the conversation is headed when you boss adds, “Oh, and next Friday is Hawaiian shirt day. So, you know, if you want to you can go ahead and wear a Hawaiian shirt and jeans.”

If handled correctly, this blatant attempt to change the subject can work to your advantage. This tactic is used frequently by managers because it gives them the opportunity to regroup and hopefully discuss something else. You need to remember that this is your meeting, and you’re on a mission. Here are a few suggestions to help you reach your goal.

What do I have to do? Ask your boss to explain the career path that will allow you to increase your responsibilities as well as your bank account. Set time tables and measurements so you (and more importantly your manager) will know what’s expected.

Take responsibility. Offer to take on additional responsibilities and have your raise be reassessed in 90 days if your manager is pleased with your performance. Point out that you will be doing more work for the same pay. If your boss is open to this, consider suggesting that the raise be retroactive to the day of your meeting. There’s no sense leaving three months of extra money on the table.

Offer alternatives. There are other ways to get the raise without increasing your salary. A 5% raise for someone making $35,000 a year equates to an additional $1,750. If you know this going into your meeting why not suggest a one-time performance bonus equal to your raise. If that’s too much for your manager to digest, offer quarterly installment based on performance.

Get another job offer. I’m hesitant to offer this as a suggestion because it can backfire. You might mention that you have another job offer, and your boss will give you an empty box and show you to the door along with your last pay check. If you are going to attempt to use a job offer as leverage to get a raise, be prepared to leave.

Good employees are even more valuable in today’s tight labor market. It will cost the company more money to replace you and retrain a replacement than it would cost to give you that well-deserved 4-6% pay increase. Sometimes you have to rattle the cage to get your manager’s attention.

Best of luck to you, and let me know how it goes.

How to Get the Raise You Deserve

deserved raiseWhen was your last raise? If it was more than a year ago you may be losing money.

In 2006, the U.S. inflation rate was 3.24%. That means goods and services cost more today than last year. The price of gas has increased. Milk costs more. Cable costs more. Everything costs more.

If you haven’t had a recent pay increase, you are actually making less today than you were yesterday. So, what’s stopping you from getting that raise?

Many people are afraid to ask for more money. It could be conflict avoidance, fear of rejection or that you don’t know how to pull it off. If you are one of those people, I have some suggestions to help you successfully add some green to your future paychecks.

Know the market value of your job. Research how much your peers are making at other companies. It is dangerous to compare job titles with other companies because you might not be comparing apples to apples. Your best bet is to compare job duties or job descriptions. Online job boards and sites like Salary.com can help you develop a pay range for your position based on your job duties.

Timing is important. It’s not wise to broach the subject when your boss is in a bad mood or on a tight deadline. You should also avoid asking for a raise right after you screwed up a project, went over budget or survived a layoff.  The best time would be after you completed a significant project or after you’ve taken on more responsibilities and proven you’re up to new challenges. Many companies create their budgets in the fourth quarter of the year. Employee compensation is an important part of each department’s budget so it’s best to get your request in early.

Stand strong. Don’t just walk into your boss’s office and demand a raise. You’d better put together a convincing case of why you deserve to make more. Examine your goals, progress and accomplishments. This is your opportunity to sell yourself. If you go in unprepared, be ready to get a quick brush off.

No boot kissing. Whining and groveling are pathetic in most business scenarios. You will be rewarded for your performance and confidence. Stating you need the raise because you’re getting divorced, having a baby or you need to get out of debt are not legitimate reasons. Any raise is based on your work performance. Not on what happens at home.

This should help you prepare, but it’s up to you to book the meeting and to make it happen. If you don’t ask the question, you’ll never get the answer.

This is evident in a recent study conducted at Carnegie Mellon University. Researchers found that four times as many men (51%) as women (12.5%) pushed for a better deal in negotiating a job offer. Not surprising, the individuals who asked for more money received 7.4% more than those who accepted the offer without debate.

The study cited a primary reason that women avoid salary negotiations. Women who pushed for more money were seen as “less nice” and were at times viewed negatively.

Have you recently experienced a successful raise negotiation? Do you feel you’d be looked at negatively if you ask for a raise? Are there different rules for women and men?

Tomorrow, I’ll discuss the appropriate course of action if you meet some roadblocks when asking for more money.

Wanted: Fuel Counselor

A co-worker of mine only buys $15 of gas at a time. She’s been doing this since gas was 98 cents, and $15 used to go a lot further. It used to fill up the entire tank. She still pays the same amount when she fills up because it is psychologically easier on her.

This morning I looked at my car’s gas gauge and wondered if I could make it through the week with only one-third a tank of gas. I was relieved when I did the math. If I only drive to and from work, I’ll make it with two gallons to spare.

The topic was fresh on my mind, having just read the nationwide AAA gas price survey. The report was disturbing.

Nebraska has the most expensive gas in the nation – their average is $3.34 for a gallon of gas – 29 cents above the national average of $3.05. Rounding out the top 10 are Wisconsin, Indiana, Hawaii, North Dakota, South Dakota, New Mexico, Kansas and Iowa

South Carolina has the cheapest AAA gas ranking, at $2.83, followed by New Jersey, Tennessee, Arkansas and Mississippi.

I know that on Friday it will cost me more than $50 to fill up my car. Something I know is inevitable, but it will nonetheless ruin my TGIF celebration. I’m making alterations to my lifestyle this week by only eating meals I prepare myself. No take out or dining out until I fill up my vehicle.

Pinching pennies is a necessity because I make the same amount that I did when gas was $1 a gallon cheaper. I’m thankful I now work 12 miles from the office instead of the 40 miles I used to drive. Moving closer to work was a lifestyle change as much as it was an economic decision.

If gas prices keep escalating I might forgo asking for a raise and ask for gas vouchers instead.

What about you? Do you fill ’er up or only purchase a set dollar amount? Are you changing your lifestyle to adjust to paying more at the pump? Looking for work closer to home? Riding your bike?

What’s In Your Wallet?

Are you getting paid what you’re worth? I’ll guess, probably not. I don’t know of anyone who thinks they make enough money.

Well, I have some good news for you, courtesy of an online survey conducted by USA Today and CareerBuilder.com.

More than half of the hiring managers they surveyed said they raised their employees’ pay in the second quarter, and nearly half said they expect to increase pay from July to September. According to the Department of Labor, over the last 12 months, wages have grown by 3.9 percent.

So the trend is: wages are on the rise!

Increasing wages are directly tied to unemployment being at a six-year low. The labor market is beyond tight right now. Employers are having difficulty filling open positions, so they’re focusing more efforts on employee retention. One retention method is increasing wages.

A 5% raise based on $30,000 a year is an extra $1,500. That’ll certainly help when you’re filling up your vehicle.

You’re probably thinking, “So, where’s my raise?” If the survey is true and the experts are accurate, it should be coming down the pike. Have you noticed your employer clamoring to stay fully-staffed? If so, has the recruiting affected your compensation?

I’d like to hear your experiences. How did you prove your worth? What were the results?

What Would Keep You at Your Current Job? The Career Advancement Dilemma

Job hopping is a common phenomenon these days, and the average worker stays at any given job about two years, according to career blogger Penelope Trunk. A lot of this is because they’re impatient and frustrated with a lack of opportunity.

A recent Wall Street Journal story highlighted the frustrations of young workers who crave more responsibility. They’re dissatisfied with the work they’re given, the responsibility – or lack thereof – they have, and the feeling that the wait to start climbing the career ladder is too long. Especially for entrepreneurial types.

Blogs like Escape From Cubicle Nation and Employee Evolution highlight the frustration of many workers today. Employee Evolution was founded a few months ago by Ryan Healy and Ryan Paugh as a way for millennials to voice their frustrations about trying to move up the career ladder. They’ve been featured in the Wall Street Journal about their efforts. With all they’ve been able to accomplish blogging about their career frustrations, imagine what these people could do if their employers only gave them more opportunities.

Too many job descriptions these days seem to say “experience required” rather than “experience offered.” Now’s the time for employers to step up to the plate and invest in their young, eager recruits, or they’ll lose them to companies that do, or perhaps, to entrepreneurial ventures.

How Can I Prove My Worth to My Boss?

Are you growing in your career? Hopefully, the answer is yes. As your expertise increases, it’s important to keep track of your achievements. A good way to do this is to keep a detailed list of specific projects, deadlines, timelines and accomplishments as you advance in your job. Also, track how you’ve impacted the budget, company goals and other areas that have directly affected the organization as a whole.

Demonstrating that you’ve helped save your organization time or money, or increased profits is a powerful resource for persuading your boss that you’re an asset to the team.

Money and Happiness

In his book, Stumbling on Happiness, Harvard psychologist Daniel Gilbert argues that having money (beyond about $40,000 a year) doesn’t increase our happiness. But, most people strive for raises, promotions, bonuses and all that goes with financial success. If his research is correct and more money won’t increase happiness, then why is money so important to most people?

In your job, how much money do you think it would take for you to feel satisfied? Or if it’s not money, what do you think would bring you the most contentment at work? How does your job tie in with achieving happiness in your life?