Show Me the Money: Smart Strategies for Negotiating a Raise

You love your job, the company you work for and the people you work with, but there’s one major problem: You’re underpaid.  You were happy with your salary a year ago, but since then, your workload has increased considerably, and you’ve yet to see a comparable rise in compensation.  What’s more, the job market is improving and you know others in the same position are earning more money than you. 

While you don’t have to quit your current position to resolve your salary situation, you do need to speak up.  Unsolicited raises can be tough to come by, which means it’s up to you to convince your manager that you deserve a bump in pay.  Here are some steps you can take to obtain the raise you deserve:

•   Gather evidence.  A desire to buy a new car or escalating mortgage payments are not valid reasons for a salary hike.  Rather, you must demonstrate a compelling business reason for additional compensation.  Document all of your responsibilities and accomplishments to date, focusing specifically on how your efforts have helped the company achieve its goals, cut costs or increase productivity.  For example, you may have implemented a new program that increased sales or taken on additional responsibilities to save others’ time.  Gathering concrete evidence of your contributions, and being able to present this information in an organized manner, is critical to positioning yourself as a valuable asset to your employer.  

• Build your case over time. Despite his or her best intentions, your boss may not be aware of all the projects you’ve been involved with lately.  To prevent your achievements from being overlooked, consider providing your manager with a monthly status report that summarizes the assignments you’re working on or have recently completed.  A record of consistent performance can bolster your case for a raise.    

• Research the going rate. Another important step is to investigate how much others in your area and with similar qualifications are being paid.  Online services, such as Salary.com and the U.S. Department of Labor’s Occupational Outlook Handbook (stats.bls.gov/oco/) are excellent resources.  Publications such as Robert Half International’s annual Salary Guides also list compensation levels for a variety of jobs in different fields.  Estimating your worth on the open market will ensure you don’t undersell or oversell your services.        

• Be tactful. While the most logical time to discuss a raise is during your performance review, it could be advantageous to speak with your supervisor about the issue before your next evaluation.  For example, you might consider initiating a conversation upon the successful completion of a major project.  Just be sure to meet with your boss at a time when you know he or she won’t be overwhelmed with upcoming deadlines or other tasks.  Likewise, you will want to wait a while if the company has just announced a quarterly loss in revenue or layoffs.  

• Prepare a fallback plan.  If a pay raise is not in your employer’s budget, consider negotiating other benefits, such as more vacation time, a flexible schedule, a larger performance-based bonus or increased stock options.  If these requests are denied, ask your boss how to best position yourself for a future raise and arrange a date for a follow-up review to discuss your progress toward this goal.   

Like any negotiation, securing a raise requires preparation and finesse.  But taking the time and effort to craft a compelling case and make your value to the company clear will increase your chances of getting paid what you feel you are worth.