Asking for a raise is probably one of the least fun exercises you’ll go through in your career. It can bring up all kinds of feelings, and not all of them good. You’re likely to feel angry about the fact that you’re asking for a raise and it’s not automatically happening because your boss values you and is acknowledging your hard work. It’s possible you might be feeling guilty for wanting a raise because part of you wonders if you really deserve it. Lastly, you might be feeling fear about what happens if you ask for the raise and don’t get it. See, doesn’t this sound like a fun process to go through with the promise of it all ending with an even more fun conversation with your boss?
However, if you’re wondering if now is the right time to ask for a raise, you’re in good company. According to a Glassdoor survey, roughly 45 percent of employees who quit their jobs list salary as the No. 1 reason for leaving. Meaning, they left because they got a job with a better salary, or they started looking to leave because they’re underpaid. So how do you know if you should stay, go, or ask for a raise? We think you should ask yourself the following questions to help you determine your next step.
Have you recently received a positive performance review?
You might be questioning how good your last performance review was if you didn’t get a raise. However, we’re hoping you asked your boss the question about the missing bump in compensation, and got an acceptable answer. If you missed your chance to ask about why you received such a glowing performance review, but no raise accompanied it, it’s an easy way to start an anxiety inducing conversation with your boss. It can start like, “I was really encouraged by all the positive feedback that I got from my recent performance review. Do you know if I’ll be in a position to get a bump in compensation as a result?”
Have you delivered a big win or been given more responsibility?
If you’ve recently agreed to take on more work, and are doing so flawlessly, it can be a good time to discuss your compensation. Approaching your boss to make your argument could sound like, “I’ve really enjoyed my new responsibilities I’ve been taking on. Has there been any discussion around my eligibility for a raise to accompany my additional deliverables?” Sometimes as a boss who has a great employee, it’s easy to give that employee more and more to handle and not reconcile how much they’ve taken on with how much they’re earning. If you feel like that’s your situation as the employee, it might be a good time to talk to your boss and compare what your responsibilities were like when you started your role, and what you’re managing now.
Are you confident your company is financially secure?
While you might not be in a position to review your company’s monthly financial statements, you should be able to pick up on indicators of your company’s financial health. Are bonuses being paid out at 100 percent? Is your company hiring, or are they laying people off? Is your company increasing its 401k match or holding your medical and dental contributions steady? Those aren’t the only things you can be looking at to determine the security of your company, but they can give clues as to the likelihood of your boss being able to find funding for the raise you may ask for.
Have you done salary research for your role? How does your salary compare to what company competitors are paying someone in your position?
A quick search on Glassdoor, Salary.com or LinkedIn should give you some basic data on how you’re being compensated in comparison to someone performing your job in another company. If you’ve worked with a recruiter that specializes in your field/ industry, reach out and ask how your current compensation compares with what they’re seeing in the marketplace. You cannot go into your boss’s office and expect to be successful if you say something like, “I found out that Francisco, the guy in the cubicle next to me with the same title makes $5,000 a year more than me. I want a raise.” While you might be justified in feeling angry about this, you’ll have to make a better case than finding out what a co-worker is making, which is inspiring you to ask for the same salary.
Discussing money in most settings is uncomfortable at best. Asking your boss for a raise is likely even worse. However, if you ask yourself the four questions above, and can craft a case for why you deserve a raise that doesn’t include an example like the one we gave about “Francisco,” you multiply your chances of getting the increase you’re asking for, and can start working toward your next promotion.