Negotiating a pay raise can be a daunting ordeal for most employees. In fact, 57% of employees surveyed said that they’ve never asked for an increase. 19% said they didn’t want to appear pushy, while 28% said they don’t feel comfortable negotiating their salary whatsoever. So, if you’re one of the bolder few – what are the steps to successfully negotiate a pay raise with your employer?
1. Understand Your Value As An Employee
It’s essential to understand your value as an employee so that you can have confidence in the negotiation. To determine your worth, document your daily or weekly activities that you’ve performed in the workplace—start recording positive successes between your co-workers and employer, including additional responsibilities you’ve taken on. Knowing that you’ve contributed significantly to an organization can help you show your employer your strong work ethic and high-personal values. In addition to this, it may be helpful to use your general range of activities as a ballpark against more senior positions to see whether or not there’s potential for you to negotiate a promotion along with your raise.
2. Use Data To Your Advantage
Researching the data in your field is vital to presenting your case. Start by obtaining as much information as possible on similar salaries and pay raise averages. This will help you determine what’s happening in your industry so that you can give your employer observable data, as well as any objective and measurable business results that have taken place, thanks to your efforts. Once you’ve done your research, use our calculator to set your targeted salary and hourly rate in a spreadsheet.
For example, let’s say that you’re a Registered Nurse (RN) with a yearly salary of $67,490 and work 36-hours per week. You found out that the average salary increase is 2.6% per year. With our smart pay raise calculator, you can insert the percent-increase (2.6%) and see that your new annual salary would be $69,244.7 with weekly payments of $1,331.
3. Prepare Your Documents And Pitch
With the information you have above, it’s time to make your pitch. Ideally, you want an excel sheet of your targeted salary and hourly rate, as well as all the accomplishments you’ve achieved written down in a personal log.
Remember, your pay raise will often be correlative to how valuable you are to the business, so don’t bring your personal financial situation into the mix. When asking for a pay raise, the employer only cares for the bottom-line of the company.
If your Performance Appraisal meeting isn’t until a few months, wait until you complete a project successfully, and received positive feedback. This will make it that much easier to approach your employer since they already have you in a positive light. However, if you find yourself doing additional work outside your job description, you want to approach your employer diligently and respectfully. This way, you can show how much of a valuable asset you are as soon as possible.
4. Schedule A Meeting With Your Employer
Now that you’re prepared, it’s now time to schedule your meeting with the employer. Approach the meeting as two negotiating parties and assume your employer already knows how valuable you are. Come with your pay raise excel sheet and a personal log of accomplishments for their reference.
During the negotiation, don’t compare yourself to other employees. The quickest way to get a definite nois a sign of jealousy or envy. Don’t be too greedy or arrogant, either. You’ll want to showcase your accomplishments with humility. Also, don’t threaten to quit or leave – this is the sign of a disaster to come.
If your employer says yes, pat yourself on the back as you achieved what most employees are afraid of doing. However, if it’s a no, there are several reasons why, so don’t take it personally. Ask how you can further your value to the company, and if there are other compensation options, such as stock options, more flexible hours, or paid vacation.
If you are getting stonewalled or feel like you are not being paid what you are worth, it may be time to start to look for a new job. We have a great resource to help you best prepare for your job hunt.
Make sure to utilize our Pay Raise Calculator to understand what that pay raise means or what you really should be asking for.