Avoid These When Negotiating Your Next Raise
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The Great Recession created a unique employment market, with more than 40 million U.S. employees leaving their jobs last year. Companies desperate to fill vacancies offer higher wages, lucrative signing bonuses, and more favorable benefits packages. But what happens to the loyal employees who remain in their job? If you're considering jumping ship for better pay, now might be the time to ask for a raise. Employers know it costs much less to retain good employees than to receuit, onboard, and train new ones.
If you haven't asked for a raise recently, now may be the time. But, make sure you're prepared before you hit up your boss for more money. In fact, you should prep for a raise conversation just as thoroughly as you would for a job interview.
Do Your Research
Check out comparative salaries in your area for your job type and experience level. Talk to peers at other companies, or go online and check out advertised salaries for similar roles to yours. Or, you can check out sites like Glassdoor, which also has worker reviews of companies. However, remember that online job board list the pay they'd offer a new hire – someone like you, familiar with the company culture and your job responsibilities, will be worth more because of your relevant experience. Bear in mind that your boss probably already knows the market average for your position and won't entertain an amount significantly higher than this unless you demonstrate that you have something very special to offer.
Sell Yourself
Do some PR on your own behalf. Remind your boss of your contributions, especially if they relate to saving the company money or increasing sales. Ultimately, your raise is a numbers game, and when you prove that you brought more money to the bottom line, you've demonstrated your value to the company much more than a new hire just walking in.
Use your job description as inspiration for your justification for a raise. Note where you've gone above and beyond your duties or where you've taken on other responsibilities outside your scope to make up for a short-staffed department. The more you can quantify your argument for a raise, the better. Employers respond better to numbers than impassioned pleas.
Be Flexible
Consider the big picture, and don't go into raising negotiations with just one goal in mind. Your employer may be going through a business slump or have higher operating costs due to higher fuel prices. This climate can affect how much they can afford for raises.
If you have long-term plans to stay with this employer and advance up the ladder, then perhaps asking for a lateral transfer to round out your skills or a promotion with a smaller raise may be a better option for your career long-term.
Or, maybe you'd be content with more work-from-home days and a smaller raise. Saving money on gas and time on your commute could end up netting you the same amount as a higher pay increase but the same number of in-office days.
Bottom Line
Remember to be respectful when negotiating for a raise and approach the conversation like a business matter. Employers know that everyone is feeling the pinch of inflation and higher gas prices, and they understand this is a personal concern for their employees. However, you cannot justify a raise on just your needs alone. It's important to prove your worth to the company to justify the extra compensation.