How to Negotiate For a Raise

So your bank account’s empty, your stomach’s growling, and your socks have more holes than the justification for ministerial pay packages. It’s called inflation friend, and you’re in need of a raise. Problem is, your HR department has requirements for that sort of thing. And unless you believe in God, no one qualifies. Fear not! With MoneySmart’s help, you may still stand a chance. Follow our method for a decent shot at getting your increment:

 

 

Let’s start with an admission: getting a pay raise is hard. In a big business, your boss has others to answer to, and the eventual decision may not rest with her. In a small business, there’s the ever-present threat of a tight budget. To improve your odds, be sure of the following:

  1. Your company’s situation is appropriate
  2. You’ve researched your case
  3. You’ve prepared your notes
  4. Your employer sees it coming
  5. You’ve planned the follow-up

Follow our steps in sequence.

 

1. Your Company’s Situation is Appropriate

 

 

If your CEO just announced the budget is being slashed (and by the way, does anyone think a tie will hold his weight?) it’s a bad time to ask.

You should time your raise request with the company’s growth. Look for signs such as:

  • A growing headcount
  • Stepped up department budgets
  • Relocation to a bigger office
  • More obfun (obligatory fun) activities like family days and company excursions

These are all signs that the money for your raise exists. As a general rule, do not request a raise during or near corporate / departmental re-structuring. Wait at least a month after re-org; with everyone floundering, your superiors may be misinformed about their budget (or your job scope).

 

2. You’ve Researched Your Case

 

 

Check where you stand on the Mercer Pay Scale. If you are above the 70th percentile, your odds of getting a raise are very low. Rip up the salary report and swallow it.

Otherwise, tuck it in a file so you can use it as evidence.

Spend some time looking on local job sites, and note the salaries they are offering. If the amount is consistently higher than what you’re paid, you have a good case. Don’t print these out and flash them at your employer: you don’t want create the impression that you’re threatening to leave. Just get a good sense of how much you should be paid, so you can ask for a realistic amount.

 

3. You’ve Prepared Your Notes

 

 

Prepare a brief, and include the following:

  • A list of your accomplishments over the past 2 – 3 years
  • A concise statement on why you deserve a raise. And I mean a statement, not a Paul Auster-esque novella.
  • A list of your personal initiatives
  • Your positive performance reviews
  • Steps you’ve taken to help other employees

The trick is to think like a shareholder. In your concise statement, identify how you bring revenue and profits to the company. Explain how your salary and raise will generate so much revenue, they’ll more than pay for themselves.

This is also a chance to take stock of your current performance. Have you actually got enough material for the above? If not, it’s a good time to start building your inventory of good qualities. Go and lay the groundwork for your raise, then try again in another six months or so.

But if you are ready, then go ahead and…

 

4. Make Sure Your Employer Sees it Coming

 

 

I used to make the mistake of ambushing my boss all the time. But after a painful experience involving a Nerf bat and my eyeball, I realized that duct tape, a hood, and a big trunk are bad ideas.

It’s better to set an appointment with your boss. Make it clear you’d like to talk about a raise, and set a meeting later in the week. You may get a statement like “I really don’t know, the budget -mumble-mumble- pain in my rear.”

Don’t let it put you off. Smile, agree, and say “Perhaps we can talk about that when you have time on (insert day).”

Putting your boss “on the spot” is a useless strategy. First, she may not have the power to instantly approve your raise. This is the case in most big companies. Second, your boss needs to crunch numbers for the budget; without time to do that, the answer is most assuredly “no”.

 

5. You’ve Planned the Follow-Up

 

 

Prepare yourself for rebuttals, the most typical of which is “we have no budget for raises.”

Ask what you can do to justify a raise, and when your boss will get back to you. If she’s happy with your work, and there’s no budget for now, that’s fine. But when should you get back to her? Alternatively, ask if there’s any other steps you can take. Perhaps have your raise channelled into employee benefits, or stock options?

Brace yourself for a “no”, and take what you can get if it happens.

And if your boss does agree to the raise, ask for gentle confirmation. Thank her and say “I’ll look forward to it on the (agreed upon date).” Then rush to the break room and make “ka-ching” motions while doing a German jig.

Image Credits:
SCA
Paul Keller
What Makes the Pie Shops Tick?
nerdcoregirl
megapixel13
Anonymous9000
Violette79

Have you ever negotiated a raise? Comment and let us know your tactics!

Get more Personal Finance tips and tricks on www.MoneySmart.sg

Click to Compare Singapore Home Loans, Car Insurance and Credit Cards on our other sites.



More From MoneySmart
Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Indonesia informs drug convicts of execution
    Indonesia informs drug convicts of execution

    Indonesia said Saturday it had officially notified eight foreign drug convicts that they will be executed, prompting an appeal from United Nations chief Ban Ki-moon to spare the prisoners and suspend the death penalty. A Frenchman also on death row for drug-related crimes was granted a temporary reprieve after Paris stepped up pressure on Jakarta. The eight -- from Australia, Brazil, Nigeria and the Philippines -- have been transported to the high-security prison island of Nusakambangan where …

  • UN chief urges Indonesia to spare drug convicts from execution
    UN chief urges Indonesia to spare drug convicts from execution

    United Nations chief Ban Ki-moon appealed to Indonesia on Saturday to spare from impending execution a group of 10 death-row drug convicts, most of them foreigners. "The Secretary General appeals to the government of Indonesia to refrain from carrying out the execution, as announced, of 10 prisoners on death row for alleged drug-related crimes," a spokesman for Ban said. Earlier Saturday, Indonesia said it had officially notified eight foreign nationals convicted of drug crimes -- from …

  • AFP monitoring deployment of Chinese seaplanes in Spratlys
    AFP monitoring deployment of Chinese seaplanes in Spratlys

    The Armed Forces of the Philippines (AFP) is adopting a wait and see approach amid reports that China will soon deploy seaplanes to further strengthen its maritime claims in the disputed Spratlys. Brig. Gen. Joselito Kakilala, spokesman for the military and commander of the AFP Civil Relations Service, said they have yet to ascertain the real purpose behind China’s continuing aggressive moves in the region. “We will wait and see before coming up with an official stand,” Kakilala said when …

  • US eyes access to Phl bases in 8 locations
    US eyes access to Phl bases in 8 locations

    The United States has asked for access to Philippine military bases in eight locations to rotate troops, aircraft and ships as Washington shifts its forces to Asia and as China expands its military presence in the South China Sea. US Defense Secretary Ash Carter, in a speech in Arizona, has outlined Washington’s next phase in its Asia “pivot,” deploying its most sophisticated destroyers, bombers and fighters to the region. The Asia “pivot” has already seen US Marines rotating through the …

  • Washington bucks China’s aggressive actions
    Washington bucks China’s aggressive actions

    Short of condemning China’s aggressive actions in the West Philippine Sea, a senior US military official said Washington does not support any act of coercion and bullying. “We don’t stand for coercion, bullying and aggressiveness,” said Brig. Gen. Christopher Mahoney, assistant US military director for  Phl-US Joint Balikatan Exercises 2015. At the sidelines of this year’s joint military exercises’ static aircraft display held at Clark Air Base in Pampanga, Mahoney told a media briefing that …

  • ‘Giving Bangsamoro police control is constitutional’
    ‘Giving Bangsamoro police control is constitutional’

    The proposed grant to the chief minister of the envisioned Bangsamoro region of operational control over police forces in the area is consistent with the Constitution, a senior administration lawmaker said yesterday. Rep. Elpidio Barzaga Jr. of Dasmariñas City in Cavite made the statement to allay the fears of his colleagues that the proposal, contained in the draft Bangsamoro Basic Law (BBL), would violate the Charter. It is clear in the proposed BBL that the Bangsamoro police will be part …

  • Noy off to KL for Asean meet
    Noy off to KL for Asean meet

    President Aquino will arrive here this afternoon with Manila hopeful of support from the Association of Southeast Asian Nations (ASEAN) to achieve peace and stability in the West Philippine Sea (South China Sea) as well as economic prosperity and inclusive growth among the people in the region. Philippine Ambassador to Malaysia Jose Eduardo Malaya III said that with respect to the dramatic developments in the South China Sea, Malaysian Foreign Minister Anifah Aman had called for the early …

  • Madrid Fusion Manila reignites Pinoy appetite for great food
    Madrid Fusion Manila reignites Pinoy appetite for great food

    After months of preparation and hard work from both the government and private sectors, the future of food is finally here in the country’s capital. Madrid Fusión Manila opened its doors on Friday to an international delegation who eagerly awaited the discussions of some of the most renowned and revered names in the culinary world. Madrid Fusión Manila is a historic gastronomic event marked by talks and exhibitions that showcases Spain and the Philippines’ shared cultural heritage, as well as …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options