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 you’re 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 it’s time for you to ask the question, “Am I paid what I’m worth? Is now the time to get a bigger raise?” If your current boss won’t 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 ‘net:
- Always ask. People don’t ask for raises because they’re afraid their boss will get angry. If you don’t ask, you shouldn’t expect to receive a raise. You need to be comfortable with making your boss slightly uncomfortable about your pay level.
- Sell the people who aren’t in the room. Often your boss wants to give you more money but needs ammo. Don’t 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 you’ve added to the bottom line, that’s powerful stuff.
- Avoid emotional pleas. Your boss doesn’t care how much you need more money. It’s all about the bottom line. Stats work. Begging doesn’t.
- Show your boss the future. If you tell your boss what you can do for her if she gives you more money, she’s 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 boss’ eyes.
- ABC. Remember the movie Glengarry Glenross? ABC is sales speak for Always Be Closing. If you make sure your boss knows what you’re doing to make/save the firm money and knows how you’re overproducing, you’re more likely to get a large raise in the future.
Getting a raise isn’t just about getting noticed. Create a plan of attack to score bigger dollars. Now that the economy seems to be handing out bigger raises….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: 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!
Natalie @ Financegirl
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!