Part 1: How to Ask Your Boss for a Pay Raise
by Sharon Feltham, Excellerate
The first in a series of two articles designed to help employees build and present a better case when asking their Boss for a raise
Asking your boss for a raise can be a nerve wracking experience but there are times when you will need to front up and ask for that increase. For example, you will need to initiate the conversation when:
You believe that the company’s salary review process hasn’t adequately recognised your efforts.
Your company doesn’t review salaries regularly in which case you may feel your salary hasn’t kept up with the job market.
Your job has changed, your responsibilities have increased and your salary doesn’t reflect this.
Use these guidelines to build your case. No guarantee that you will get what you want but you will be better prepared. You will feel more confident and this means you are more likely to present a stronger case.
It's a proven fact. A well-prepared and well-presented request stands a far better chance of succeeding.
Preparation is the Key
The real secret to asking for a raise is preparation. Don’t assume your boss knows everything - about you, your job, the projects you’ve completed, the extra hours you work or the results you’ve produced. This is especially true of bosses who are responsible for many employees, multiple teams or employee's who work in different locations.
The more information you have before sitting down with your boss the better. Don’t go in empty handed or you could find yourself walking out that way too.
How are you Paid Now?
It's not just how much you are paid but "how" you are paid so you need to understand your employer’s remuneration systems and policies. This information is usually available from your employee handbook, the company's intranet or Human Resources Manual. If it's not readily available or needs clarification then contact your HR department.
Many larger companies invest a considerable amount of effort to ensure their salaries are competitive. They do this by benchmarking positions within the company against salary surveys of the wider job market. These surveys enable employers to establish a salary range for each position within the company so you need to understand:
What factors are used to "value" your job
Where your job sits within the company’s remuneration structure, and
Where you are positioned within the salary range for your job
What is your Job Worth?
If your company doesn’t have a formal remuneration system (and this is the case for many smaller companies) then you can still research what your job is worth.
There are a number of resources on the web which provide information for different industries on salaries/ wages and general annual increases. (Check out the links at the bottom of this page). This will give you an indication of the salary range and movements for jobs that are similar to yours. Libraries have access to this information too and can help you with your research.
You also need to consider your experience, education, and skills in relation to your job. This will influence whether you sit at the lower or upper end of a salary range. Where possible find out what other people with similar backgrounds in similar sized companies are earning. You also need to take into consideration differences in salary between metropolitan areas (usually higher) and provincial regions (usually lower).
Check your Job Description
Review your job description (you should always have a copy). Not only will this form the basis for preparing your case but it’s likely to be the first thing your boss will check too.
Is your job description up to date?
Does it accurately reflect what you do on the job?
Are you meeting the full requirements of the job description?
Record any additional tasks, duties and responsibilities that aren’t included in your original description.
You will need to discuss this with your boss and where there are substantial differences, your job description will need to be updated.
Where your job has changed significantly and you are performing effectively, these factors alone may be sufficient to justify an increase so it’s worth making sure you do this preparation well.
Document Your Results
Employers pay more for employees who do more
You can’t assume that you will get a raise just because you’ve been in the job or with the company for 10 years. Employers are interested in the value you bring to your job and the results you produce, so be prepared to answer questions like:
Where and how have you added value to the company, your customers, your team?
What skills or qualifications have you gained since your last increase?
What projects have you participated in or managed?
What challenges have you overcome?
What were the results?
Your Personal Best File
Documenting and keeping record of what you’ve accomplished is key. Track your performance by creating a Personal Best File. Keep it up to date. File everything. This will produce a record of your achievements, useful not only when you ask for a raise but for your performance appraisal as well.
Track the different projects and tasks you’ve worked on. Take notes on good things people have said about you (including emails). Is there anything specific in writing or examples of work that illustrate the good job you’ve done?
Do this well and you will be able to provide your boss with tangible evidence of your accomplishments.
Check the Climate
You need to understand the financial state of your company. If profits are down and costs are up, then salary increases are unlikely to be on the agenda. This doesn’t mean you can’t ask. It does mean you need to consider the limitations this may place on the company’s ability to pay, the timing of your request and your personal situation within the context of the bigger picture. When you have gathered this information you will be able to frame the request for your increase more realistically.
How Much?
Don’t make your boss play guessing games. Determine how much you want and clearly communicate your expectations by stating how much you want your increase to be. It respects your boss’s time and strengthens your position by demonstrating that you’ve done your homework.
You may need to negotiate but at least you have established a starting point.
Give your Boss a Way to say Yes
Be flexible in your negotiations. There is more than one way to improve your overall remuneration. Your boss may not be able to give you the raise you want (or at least not right now) but they may, for example, give you a one off bonus or time off, or increased annual leave. It is absolutely acceptable to ask for other forms of recognition, so remain flexible and be prepared to discuss these.
Choose your Time and Place
Once you’ve thoroughly researched and prepared you’re ready to speak with the boss. Most bosses’ dislike being blindsided by employees who put them on the spot so don’t walk into their office and hit them with your pitch. Do schedule an appropriate time to meet.
Depending on your relationship you may choose to mention that you want to discuss your salary or you may simply say, “I’d appreciate a time with you to talk through some issues about my job. When would this be convenient?”
Part 2: The Conversation with your Boss»
There’s a right way and a wrong way to ask for a raise.
Useful New Zealand Links
Quarterly Employment Survey:
An economy-wide index of salary and wage rates
Dept of Statistics
NZ salaries, ordinary and overtime wage rates, annual leave and statutory holidays etc
Department of Labour
Basic information about the rights and responsibilities of employees and employers in the workplace
Worksite
Useful information on everything to do with employment in New Zealand
Hays Salary Survey 2007
Salary guides compiled from information collected throughout New Zealand and Australia
Related Articles:
The Bosses Guide to Employee Raises
Return to Quick Coach Articles
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