When 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.