Hey everyone. Today’s post is a blast from the past. The comments were lost when I switched from Blogger to WordPress so I wanted to give this post some extra loving and re-post it for today.
I normally would not do this, but lately I have been receiving a lot of emails from a lot of you about how you all want to increase your income.
Some of you have recently moved and cannot find a well paying job, some think they are worth more (and I agree!) and some of you just plain old need more money to pay off your debts and to save faster. Anyways, that’s enough of my rambling and I’ll let the post begin.
A lot of you are graduating, looking for your first job, looking for a new job and so on. So I thought a perfect post for right now would be negotiating your salary (or asking for a raise). This is a tough and touchy subject, as it is often hard to bring up salary.
I’ve negotiated my salary a couple of times. Once I asked for a raise, but then found out I asked for too little, but she still said yes to my measly raise request. It was difficult and I was extremely nervous.
I didn’t plan at all. I woke up one day and just marched in. If I would’ve planned, I probably would’ve received something higher.
When I was applying for jobs after I graduated over 2 years ago, I also attempted to negotiate many salaries. The negotiating for the most part worked (but for some it did not). Some companies thought I was ridiculous but they were mainly companies that I wouldn’t have worked there for such a small amount.
This is also a topic that I need to keep in mind since I will be finished with my Finance MBA soon, and the topic of raises will be coming up at my work.
I’m the type of person who prepares for EVERYTHING. I honestly don’t think you could ever be too prepared.
1. Find your market rate.
What are you worth? Think about the skills and experience that you bring to your company, and let them know about these. Some websites such as GlassDoor give an idea about what the salary is for the position you are applying for, but they are not always correct. Factor in location, the company, responsibilities, etc. Even try asking people who have similar positions (but don’t make it awkward of course).
Also, you don’t want to say a salary range that is too low or too high, as your application will most likely just get discarded if your employer doesn’t agree and think they are just wasting their time.
You could also shop around and interview at other places. This will give you the best idea of what your salary range is if others offer you an amount. However, I wouldn’t always recommend telling your employer that you are shopping around. This might hint to them that you would easily leave if another offer arose.
2. Analyze how the company is doing (financially, industry-wise, etc).
If the company isn’t doing the greatest, and you’re asking for a raise, this might be a bad time. However, if you absorbed a lot of other roles and are tackling many new tasks, this might give the company more of a reason to increase your salary in order to keep you.
3. Practice what you’re going to say and when you’re going to say it.
Practice makes perfect. You could role play and practice with someone else. Sounding confident and not saying words such as “umm” will reinforce that you are worth the extra money.
Make a list of your work accomplishments, goals, etc., so that everything is fresh in your mind for when your employer asks you.
Another tip is to not bombard the person who you are asking. You don’t want to make it uncomfortable. I used to work in retail, and the young employees would ask for a raise in front of customers on the actual sales floor. This made it very awkward. When asking for a raise, ask for it privately.
4. Predict what the person might say.
Don’t be hostile towards them. I would not recommend telling the person that you are going to quit immediately (or reject the job offer) if you don’t get the salary you want. I would think about it (at least for a second). Storming out of an interview or the meeting will not get you want you want.
This is where practicing what you’re going to say comes in. If you can predict what they’re going to say, then come up with good things to say back!
5. Believe in yourself.
Being confident in what you’re saying is a must. If you sound unsure of yourself, then everyone will know.
If all else fails and the company cannot increase your salary, try negotiating for something that isn’t directly related to pay, such as an increase in benefits or more vacation time.
What are your tips?
Have you ever successfully or unsuccessfully asked for a raise?
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Allison says
I think a lot of it depends on our performance too. We have a guy at our office who literally spends his days doing nothing and wants a raise for it. Arrrrrr!
Love those graphics by the way!
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MakingSenseofCents says
Ahh I hate people like that! Luckily we don't have that at my work.
Holly@ClubThrifty says
I definitely want a higher salary! But, I've gotten a raise every year and sometimes even twice a year so I can't really complain. I agree though that if you don't ask then you probably won't get anything. Might as well ask and it's ok if they say no.
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MakingSenseofCents says
I agree!
DC@Young Adult Money says
Thanks for reposting, MIchelle! Increasing your income can really help with cash flow and savings, so I personally have tried to focus on this as much as possible. I think a big thing with negotiating a raise is having a list of the accomplishments you've had over the past year. Did you go beyond your regular duties? Did you improve a process beyond what was expected? Have you stayed late to help with something when you could have gone home instead? These are the sorts of questions I ask myself to start brainstorming my "wins" list that I will share at my review and use as an argument for a raise.
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MakingSenseofCents says
This is definitely a great idea. Being able to show and refresh their memories is a must.
My recent post Do you want a higher salary?
Greg@ClubThrifty says
Honestly, I think if you think you deserve a raise, you should ask for it. Of course, if you have only been at the business for three weeks, asking for a raise isn't a great idea. However, rarely will you get one if you don't ask for it. Fortunately, our bosses have never made us ask.
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MakingSenseofCents says
I agree, I'm glad my job now does not make us ask.
My recent post Do you want a higher salary?
John S @ Frugal Rules says
Great tips! I've used most of them in the past. The key is arming yourself with knowledge as opposed to going in with emotion. The difficult balance to find is being confident and straight forward while doing it without coming off as cocky.
MoneySmartGuides says
I think it is important to be open as well. In that I mean, you might go in asking for 10%. Your boss may come back with 5% and a review in 6 months with 5% then should you meet your goals. When negotiating a raise, it's not all or nothing. You can easily find middle ground where both of you can agree.
When I last asked for a raise, I was offered half. I countered with a review in 6 months as opposed to the normal 12 to evaluate my performance and to see if I could earn an additional 5%. My boos took my offer and in 6 months, I had received the other 5%. Of course to do this, you have to believe in yourself as Michelle pointed out. Know that you are worth it and show it when asking.
My recent post Are You Pretending To Be Rich?
Evencheap says
Knowing what you're worth is key. When I first started working at my current company,I asked for $10k more then they were offering, and for the company to pay my full tuition since I was in University at the time. I went in with a complete business case on why I felt I deserved this, and what they would get from me in return. At first, they weren't sure if they could do it. They took some time and came back and said yes.
My recent post I Almost Relapsed!
mochiandmacarons says
1. Ask for more than you think you'll get. I once asked for $35K more than I thought I'd get, and got $30K more.
http://www.thebudgetingtool.com/2012/05/07/how-i-…
2. Do your research on yourself. Keep emails, recommendations, note major projects and have lots of ammo to prove your worth.
3. Remember that there is always a little extra somewhere, above the initial offer. For me, I always imagine there's $10K kicking around somewhere. That usually helps me ask for $15K.
4. Once you get your raise, continue to excel and prove you are worth every penny. Otherwise, they'll just make sure you're the first to go.
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MakingSenseofCents says
These are definitely all great tips! Thanks 🙂
mycanuckbuck says
I've never asked for one. We get one every year, and I've generally been happy with mine. I love the infographic!
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Budget & the Beach says
I need to ask myself for a raise. 🙂 I think I'm going to tell my clients I'm raising my rates a bit starting Jan.
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SavvyFinancialLatina says
I didn't ask for more money on my first job after school (the one I have now). I wasn't confident enough, and thought what they were offering me was awesome. Don't get me wrong it is, but I know I left money on the table. Someone's tip above asking for 15k more than they offer. It's a great tip, I'm going to use next time!!!
Miss T says
I think open communication with your boss is key. Good communication breeds good relationships which is important. I think being aware of current events and circumstances is important. Don't ask for a raise the same year as budget cutbacks.
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kimateyesonthedollar says
I am having to do this for the first time ever. I think if you can show how much money you will bring the company or how much time you can save them, etc, it is much easier for the boss to agree. If you ask for X dollars, it might be hard to get their head around it because it seems like adding an expense at first. If it pays for itself, it will make more sense. I would also never ask for something based on time there. If you don't do much with your time, it isn't worth a whole lot.
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femmefrugality says
Great tips! I never have…I've worked places with scheduled raises and was always surprised by the amount I received. I guess I should negotiate anyways! My sibling recently did this with a lot of success. They researched what the maximum would be, made an argument for why they needed them to be incentivized to stay (they had a lot of turnover before they entered the position,) and voila! Highest possible pay.
My recent post Help me earn a $10,000 scholarship!
joecassandra says
If you practice, you can definitely get going in the right direction. Make sure you have some stories to share about your success at your job, everyone likes stories!
Being non-confrontational helps, just be conversational and thankful for everything and they will definitely consider it!
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AmericanDebtProject says
My company is just way too small for me to get market rate–almost everyone is underpaid. But I have been made a few job offers and I am practicing my negotiating skills. I haven't found anything I like yet but I am much more confident talking about what I expect from potential employers!
MoneyMasterMom says
My best advice is to phrase your questions in ways that make it easy to say yes. Also you should start the conversation with small talk and ask questions you know your boss will say yes to. "I saw your team won last night, bet you felt good about that" Great weather this weekend eh? (yeah I'm Canadian and say eh) This makes them more likely to say yes to your real question.
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@momoneymohouses says
Asking for a raise is never easy, but it's definitely worth a try. I'm so glad I did so after working a year at my job I'll tell ya that!
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christineslittleblog says
Such a good post! I need to remember not to sell myself short the next time I get a job offer just because I'm desperate for employment! 😉
My recent post Still Trying to Find My Place…and a Job
Canadianbudgetbinder says
Who wouldn't love a bigger salary! I know my salary will increase with time as I'm just a small potato in a field of big potatoes and have to work my way up the ranks and gain experience. I continue to do all I can do and educate myself so I am at the top of my game come review time. Great Post. Mr.CBB
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Marissa says
Doing your research is probably the most important part of asking for a higher salary. I love negotiation for a bigger pay day, but I'm also a bit strange.
My recent post Work Smarter, Not Harder
Meg says
definitely gotta do your research and if the job is a little too under what you think you should be getting dont be afraid to speak up, offer them a salary and give them reason why you think that is what you are worth. but dont be a money grabber and ask way too much
Cassi says
Hmm, that was interesting. I personally have only had one "real" job, and I'm am very happy with the pay, so this currently doesn't pertain to me, but I do want to get a second job soon for my college fund so this information will come in handy there. Thank you!
Dropthatdebt says
Wow! That is pretty crazy to get such a massive raise. Good for her ! And great article Michelle!
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Family Money Values says
My only other tip would be to ask at an optimal time.
Asking for a raise in 2009 – in most companies in America – would not have been optimal timing.
Right after you put in that big project or landed that lucrative client or successfully brought the operation up to current standards would be optimal.
DNN says
of course everyone wants a higher salary. Either they don’t know how to get started with an online side hustle. Were they just aren’t pure downright lazy when it comes to making the transition from employee to entrepreneur. Or maybe some people just think some people are just cut out to be “side hustle millionaires.” People who don’t see the bigger picture about making the successful transition from employee to entrepreneur and becoming a future “side hustle millionaire “and up staying stocked in the day job employment scene and fall in love with their cushy form of working. I’ve never been content in the past working for someone else though I had to get up and go to work for an honest days pay check. I’m thankful today to be in the [side hustle millionaire] mindset because even a person with a college degree is not guaranteed job security in today’s world of “employment uncertainty.” True job security is working for yourself and starting an online side hustle with the intention of being a future side hustle millionaire. This is how anyone can earn a “higher salary.” 🙂