Most employees find the thought of asking for a raise to be an intimidating proposition – not because they don’t feel they have earned it (though in some instances that might be the case), but generally because asking for a raise means finding justification for why they deserve it.
It is not enough for employees to tell their boss that they need more money. Everyone could use more money, and if it were that simple, everyone would be asking.
Instead, before asking for an increase employees must develop a solid rationale as to why they should be paid more than what they are currently earning. And to do that, they need to focus on the ABCs of doing it the right way.
Employees who are worth more money act like it. Employees should start the process by asking for an appointment to speak with their boss privately when she won’t be distracted by other people or issues.
Next, they should clearly explain that based upon the information they have gathered they feel their salary is not in line with others in the same position or with what they as an individual bring to the company.
Finally, they should be patient and wait for a response. Allowing the manager a chance to think it over is important. Chances are she will need more time to look into the situation.
Employees need to do their research. Looking at job advertisements that quote salary ranges or asking peers at other organizations will not necessarily provide the best information on how much someone should earn. The same job title in different sized companies or in different industries may entail very different things.
There are two key elements that compensation specialists at an organization look at when determining where an employee’s salary should fall within a salary range -- the market value of the same or similar position at a similar sized company in the same industry (generally determined by using salary surveys) and the individual’s level of education and experience in relation to others in the same position.
The best way to determine how an organization establishes salary ranges is to talk to human resources. Employees should find out the range for their job and where their salary currently falls within that range. If it is below what others with the same experience and education are earning, that is their justification to ask for a raise.
Know how much of a salary hike to ask for. An employee who has spoken to human resources has a ready ally and knows what the appropriate adjustment should be.
But keep in mind that working for a smaller organization where there is no formal compensation or salary plan may mean this process becomes a bit more difficult. However, it is still worthwhile to ask human resources for assistance.
Now is the time to be flexible. If even after asking for a raise there is no likelihood of getting an increase, consider asking for an alternative. Other perks such as a one-time performance bonus (if not already offered), stock options, a car, cell phone, or laptop, can all be worthwhile financial rewards.
Employees need to be prepared if the boss says ‘no.’ Know what to do next. Accept it? Quit? On the other hand if he says ‘yes’ but negotiates for a lesser amount, employees need to know how low they are prepared to go. Whatever the boss's decision, be sure to pre-think possible outcomes and what response to give; this includes requesting time to think about it.
After all, consider what happened recently to two employees in Georgia. According to a July 2007 story in the Atlanta Journal-Constitution, two employees at an East Point car dealership had been “hounding” their boss for a raise. Fed up, he “apparently snapped” and “allegedly shot both of them to death inside the business.”
Now there's an outcome they probably didn't anticipate. Remember there is always a right way and a wrong way to go about getting a raise.