Are you thinking about asking your boss for a raise? To increase your chances of success, it's important to know what your job’s really worth and how to effectively approach your boss about a salary increase.
Are you thinking about asking your boss for a raise? To increase your chances of success, it's important to know what your job’s really worth and how to effectively approach your boss about a salary increase.
1. Before you do anything find out your company's policy on salary increases. Are raises given only at annual review time? Is there a budgeted amount that your department must stay within for each employee? If your boss has no authority to exceed the budgeted amount handed down from higher-ups, you may have wasted your time and effort.
2. Pinpoint why you deserve a raise – what do you do that’s so great? Evaluate your skills and activities against your job description – how to you exceed the requirements? Note any additional tasks you do, gather past performance evaluations and note down your accomplishments and contributions to the company.
3. Research salaries in your area for similar jobs. Get an idea of what your job typically pays in your area. Make sure you bear in mind the value of any benefits or perks you receive (car, phone, superannuation, health insurance, free products).
4. Know what you're asking for. You don't have to state what it is up front, but you should have a good idea of the amount you'd find acceptable and be able to defend it.
5. Be aware of your company's financial state. Are they struggling to stay afloat? In a budget crisis? If so, your chances of getting that raise are not good. However, they may be able to offer you additional benefits instead, such as extra paid leave, tuition assistance, company shares, overtime, or a promotion – if warranted.
6. Don't give ultimatums. This just puts your boss on the defensive may force you into quitting or having to swallow your words. Your goal is to convince your boss that you're worth more money because you do an exceptional job and perhaps that you've taken on additional responsibility that warrants a higher salary or promotion.
7. Timing is everything. Ask your boss for an appointment at a time that is good for him or her. Try to pick a time when your boss won't be distracted and pressured by deadlines, if possible.
8. If, after all this, you don't get the raise you realistically deserve, DON'T respond with sour grapes. Ask your boss what you'd have to do to receive an increase, or a promotion accompanied by a pay adjustment, then renew your efforts to improve your performance. Make sure your boss is aware of what you do and how well you do it, and document your accomplishments in preparation for your next opportunity to discuss salary.
The views or information given in this article are not necessarily the views of AMP or AMP Adviser Businesses. It provides general financial information and is not intended to provide financial advice. For personalised financial advice, we recommend you contact us.