Know what your work is worth
If you don’t know what the market rate is for your work, find that out before you ask for more money.
If it turns out that you are already at the top of the market, you may want to factor that into your thinking about what’s reasonable.
If it turns out you are underpaid, that’s useful information too.
Figuring out what the market rate is for your work is not always straightforward.
Salary websites aren’t helpful and not always accurate at the individual level because the same job title can mean different things from organisation to organisation, location to location, industry to industry, and the list goes on.
Have a number in mind
Don’t just ask for a raise in general. Specify the salary increase you would like, either in absolute or percentage term.
When you are ready to talk numbers, there are two approaches:
(1) Name a specific sum or percentage, or
(2) Wait for your manager to mention it. If the offer is lower than what you had expected, tell your manager what you were hoping for and suggest meeting in the middle.
Compute the right number
Asking for a 10% pay increase sounds like it is been plucked out of thin air.
But asking for 9.7% increase sounds as though you have done your research and market benchmarking and know what you are on about.
It is a matter of presenting a believable figure.
Count everything
When determining your salary increase remember to include the value of benefits, such as bonuses, commissions, health insurance, flexible spending accounts, profit sharing, paid vacation, stock offerings, etc.
It is about your total compensation. This figure should include everything.
In presenting that figure to your manager, you may split the figure into base pay (money received) and others.
Ask your mentor and people you trust
Ask mentors or other trusted people in your line of work what they have earned earlier in their careers.
Factor in inflation and economic cycles.
Talk to co-workers, former colleagues, and acquaintances
You can often get surprisingly good data just by talking to people in your field.
Most people don’t like to be asked, “What do you earn?”
Instead, they are happy to share if you ask, “What would you expect a job like [X] at an organisation like [Y] to pay someone with [Z] qualification or [A] years of experience?”
You can also try talking to recruiters or professional organisations in your field about salary data. Do remember that salary information is the average.
Factor in your employer’s salary structure
Once you have a good idea of the going rate for the work you are creating or contributing, factor in your understanding of your own employer’s salary structure and policies.
It is very useful to know how your employer generally handles salary increases so that you know what’s likely to be possible and what you can’t do or ask.
Some employers may have rigid policies around how large a pay increase anyone can get. For example, they rarely give anyone more than a 5% raise.
Be fair and realistic
Be realistic about what you are asking for and keep an open mind.
If your employer offers you other non-financial benefits or perks in place of a salary increase, consider what motivates you as these benefits may be worth as much as monetary rewards. Take into account your personal circumstances.
Your manager may want to reward you with a higher salary but is unable to secure this for you because of the way the organisation operates.
Don’t bring in your personal life
Ideally, you should try to craft your business proposal in a way that only focuses on the objective reasons as to why you deserve an increase in salary, rather than why you might want (not need) one.
Some things are better left unsaid when you are talking about a pay increase with your manager.
Talk objectively about what value you have created or contributed to the organisation.
Don’t be emotional
Therefore, keep your conversations professional.
Salary increases are given out based on merit and your positive impact on and valuable contribution to the organisation.
It is not about your life circumstances
You may need extra money to cover a rent increase or unexpected expenses. But your manager doesn’t need to hear that or want to know that.
Keeping your salary increase conversation business-focused and objective will only help your chances.
Don’t blackmail
Emotional blackmail is a big no-no.
While debt, rent, and general expenses can pile up all too easily, it is not an appropriate topic to bring up to force your manager to give you a salary increase.
Don’t threaten to leave
Don’t threaten to leave if you don’t get the requested salary increase.
You also shouldn’t threaten your manager with other job offers, interviews, recruiter conversations, etc.
This will likely backfire and cause your manager to mistrust you in the future, which is not what you want to do.
Be mindful
Be mindful of the fact that your manager may not always see or know what you are working on or have done.
Updating them regularly on smaller projects and achievements will serve you well when asking for a salary increase.
Schedule weekly catch-ups with your manager
Having weekly catch-ups with your manager will build that foundation of trust and knowledge over time to give them a solid picture of your valuable contribution to the organisation.
Don’t ask via email
Sitting face-to-face with your manager may be daunting. But it is the best way to gauge their reaction especially their body language. This will also affirm you as someone serious about your future in the organisation.
While scheduling and follow-up can be done via email, it is best to have the main conversation in person.
Always stay professional
Be assertive rather than aggressive.
Never corner your manager by demanding an immediate response.
Keep a positive attitude
Let your manager know that you appreciate the time they took to have the conversation and consider your request.
Set the right tone
Having the right tone and approach is vital for a successful discussion, even if the answer is ‘no’.
You may have used the right language, but if your tone is hostile and impropriate, it will colour your discussions negatively.