Getting a better-than-average raise is primarily a communication problem. The person who can give the raise is likely to resist your idea because he /she is rewarded for controlling costs, not for approving better-than-average raises. Overcoming such resistance is a multi step process that will require determination and patience. Success usually means you need to plant the idea in your manager's mind in installments over a period of time rather than trying to win her over in one dramatic confrontation where you do a brilliant selling job.
Most people have trouble discussing pay issues with their employers. That's why employers so often have no idea that someone is dissatisfied until they're given two weeks' notice. In the end, communicating about money is actually a helpful act for your employer as well as yourself. An appropriate resolution or increase results in a rededicated employee, and an employer who doesn't have to worry about finding and training a replacement.
Nevertheless negotiating about money is in people's discomfort zone. Still, you must learn to do it. And like anything else, negotiating for money becomes easier as you gain more experience you get doing it.
Here's how to proceed:
1) Research your company's compensation policies
- What is the maximum raise typically given?
- When are raises given?
- What are the opportunities for advancement?
- What do you have to do to qualify for those opportunities?
- How is your performance evaluated?
Know well what standards your employer uses for measuring performance. Concentrate on the achievements that are valued. Only accomplishments your manager appreciates will justify a raise. Concentrate your efforts in the areas (projects, skills, abilities, work habits) that your manager especially values.
2) Evaluate your job description
Over time it is easy to take on new assignments without considering that increased responsibilities may justify increased compensation.
3) Find out how much others make in comparable jobs
How much are workers in positions comparable to yours being compensated?
Do your homework. Check with any professional association you belong to for salary surveys. Check job ads in local newspapers, career-oriented magazines, and the internet. Find out the salary ranges of co-workers and colleagues, both within your department and within your company. Get the facts and figures and use them appropriately when justifying your request for more pay.
4) Track your accomplishments
What have you accomplished since your last raise? You may be surprised at how much money you are saving your employer or how much additional revenue your actions are bringing in.
Put actual dollar values on your accomplishments. Calculate the savings or additional revenue and include it in your documentation. Tracking your accomplishments and presenting them in financial terms clearly highlights your value in bottom-line language all managers appreciate.
Also keep a log of your progress in terms of improved educational and training.
5) Set a realistic amount as your goal
Be clear on the exact amount of the raise you are seeking.
But be sensitive to your supervisor's perspective so that you can negotiate within realistic budgetary parameters. Even though your supervisor may agree your case is justified, she may not have authority to unilaterally grant your raise in which case you need to be patient while she takes your case to higher authorities or when you must wait for a new budget cycle.
6) Gather documentation
Make it easy for your supervisor to argue your case before upper management by giving her clear and concise documentation of your research findings and your accomplishments.
7) Practice asking for the raise
Just as it is helpful to do mock interviews before going to a job interview, it is helpful to practice what you will say to your manager and how to say it. Get a tape recorder and practice by saying the words. Do it again and again until you're satisfied with the way you sound on the tape.
8) Handle the conclusion adeptly
- If you aren't given a raise right now, try to find out if or when you might expect it.
- Ask what you need to do to earn more.
- If you cannot get money then ask for other valuable items that can get you a raise in the future. For example, further training, a membership in a professional association, or some other benefit. The budget for salary increases may be tight but there may be plenty in the training budget.
Whatever happens, keep your attitude and demeanor professional and positive.