Good news: raises are back.
According to a recent USA Today piece, wage growth is finally picking up again. Previously, salaries were stuck in neutral (up an anemic 2%), leaving many to believe that this current stock market move was unsustainable and probably making you think you’d never score a bigger raise again.
In case youâre a geek like me and want the details: leisure and hospitality wages were up 2.7% in June from 12 months ago. Professional services rose 2.4% and construction was up 2.2%. These are all huge gains when compared to twelve months ago.
What does this mean to you?
It means that everyone else is getting paid more, so itâs time for you to ask the question, âAm I paid what Iâm worth? Is now the time to get a bigger raise?â If your current boss wonât give you more money, you might benefit from testing the waters elsewhere.
Asking for a Raise
In an early 2 Guys & Your Money podcast, Jefferson from See Debt Run reviewed how he scored some big raises at his job. Also, Michael Hoffman talked about raises in his Secrets of the Top 1% of Earners Stacking Benjamins podcast episode.
Here are seven top ideas from those shows and from some of our favorite sources across the ânet:
- Always ask. People donât ask for raises because theyâre afraid their boss will get angry. If you donât ask, you shouldnât expect to receive a raise. You need to be comfortable with making your boss slightly uncomfortable about your pay level.
- Sell the people who arenât in the room. Often your boss wants to give you more money but needs ammo. Donât make arguments to your boss only. Treat this negotiation as a way to fill your boss with ammo to fight the war on your behalf up the ladder.
- Scout out your competition. How does your pay stack up against others in your field? Are you paid fairly or below the norm? Providing your boss with more data not only proves the point that you deserve more, but it also shows that you care enough about a raise to have studied the compensation of others in your field.
- Bring Data. If you can show your boss how much youâve added to the bottom line, thatâs powerful stuff.
- Avoid emotional pleas. Your boss doesnât care how much you need more money. Itâs all about the bottom line. Stats work. Begging doesnât.
- Show your boss the future. If you tell your boss what you can do for her if she gives you more money, sheâs more likely to be able to sell it. This is fantastic because it gives you the chance to take on more responsibility and make yourself more important in your bossâ eyes.
- ABC. Remember the movie Glengarry Glenross? ABC is sales speak for Always Be Closing. If you make sure your boss knows what youâre doing to make/save the firm money and knows how youâre overproducing, youâre more likely to get a large raise in the future.
Getting a raise isnât just about getting noticed. Create a plan of attack to score bigger dollars. Now that the economy seems to be handing out bigger raisesâŚ.use these tips to make sure you score as much as possible!
Want more on this topic? Check out Barbara Friedberg’s excellent article: How to Get a Big Pay Raise Without Using the Briefcase Technique
Photo:Â Bilal Kamoon
I’d say go armed with a one pager with you listing everything that sets you apart from rest and justifies a raise. Leave it at your boss’s desk after you left.
Typically for me, raises are determined before talking with anyone or a meeting. 3.5% this year. Which is the lowest I’ve had in my career.
Raises at my old job were simply a shell game. We got raises the last year I was there, but they simultaneously ended the profit-sharing program.
I loved Glen Gary Glen Ross and actually practice the ABC (always be closing) approach. (secret; the more you practice, the easier it gets!
This is similar to the “lean in” book re women in the work force. I think it’s an excellent reminder that you really do need to ask and sell yourself. At my current job, there are automatic raises every year, which I know is unusual!