How to ask for a raise
The first thing that you need is a clear and well-prepared strategy. Ideally, you have already been preparing the groundwork for the discussion of a raise by keeping a record of your accomplishments and results. Assuming these are substantial (if your performance is not strong, I would not advise asking for a raise), then you will have the basic tools you need in your discussion with your boss.
In addition to knowing your accomplishments, know the market conditions. How is your company doing? The more senior you are within a structure, the more knowledgeable of this you are, and the more impact you can have on results. Also, know the market rate for salaries and other forms of compensation - stock options, tuition, expatriate benefits.
Remember that not every argument is results- or cost-driven. There can be powerful arguments related to responsibilities and reasonable obligations. For instance, if you were given a raise along with the new responsibilities, you may have since learned that the scope of the job is actually broader than originally anticipated.
A good example of a non-financial contract negotiation from the early- to mid-90's is that many expatriates working in Central Europe, especially in Russia, negotiated the right to choose the airline on which they flew and the connections that they took (most companies have policies which require executives to choose the cheapest flight). These clauses were negotiated when the quality of many regional airlines (especially in the ex-Soviet Union) was a matter concern.
As soon as you are well prepared, develop a clear idea of the raise that you want. If you do not have a clear demand then you defeat part of the purpose for asking; again remember that you can also include indirect compensation and benefits as well. Also anticipate what your boss's concerns might be and be well prepared for these.
Now that you are prepared, make sure your boss is as well. Discussing a raise, unless it is done within the framework of a promotion or performance review, requires a one-on-one meeting. Inform your boss that you would like to discuss a raise and schedule the meeting; preferably on a day and at a time when he/she does not have other pressing commitments.
Of course, if you have an annual review, then this provides the best time to discuss a raise. In this situation, keep in mind that if the increase in responsibility is recent (within the last six months), your boss may want to see the results before considering the raise.
Finally, be prepared to negotiate. Recognize, especially in the current economic climate, that your demands may not be fully met. So have a fallback position with some alternatives and acceptable compromises.
If the answer is 'no' or 'not now', it is important to discuss the reasons and when the discussion could be revisited. Sometimes the current economic situation or budgeting constraints are real issues. However, these can then be addressed in the future - in three or six months when a new budget is being planned. Also, bear in mind that your boss may not be able to get back to you with an answer immediately, especially since in many of today's flat organizations he/she may need to consult with HR or his/her supervisor.
It is important that you do not make threats, since this can lead to irreparable damage to your image or relationship with your boss. If you threaten to leave if you do not get what you want, and you do not get what you want, you may be forced to leave (or your stature within your company will be damaged).
Finally, as you consider your raise, remember three key elements of this discussion that are often forgotten. First, remember that most bosses are experienced at this type of discussion; it goes with the territory as part of budgeting and planning. Secondly, if your boss is satisfied with your performance he/she will not begrudge you the raise (although they may have limitations on what they can offer). Thirdly, your own understanding of the value of your performance and commitment to your employer are both important parts of their valuation of you. A well-handled negotiation is part of the relationship building - and therefore career development - process.
Matthew Tebeau, the Managing Partner of Ray and Berndtson Poland and the Baltic States
In addition to knowing your accomplishments, know the market conditions. How is your company doing? The more senior you are within a structure, the more knowledgeable of this you are, and the more impact you can have on results. Also, know the market rate for salaries and other forms of compensation - stock options, tuition, expatriate benefits.
Remember that not every argument is results- or cost-driven. There can be powerful arguments related to responsibilities and reasonable obligations. For instance, if you were given a raise along with the new responsibilities, you may have since learned that the scope of the job is actually broader than originally anticipated.
A good example of a non-financial contract negotiation from the early- to mid-90's is that many expatriates working in Central Europe, especially in Russia, negotiated the right to choose the airline on which they flew and the connections that they took (most companies have policies which require executives to choose the cheapest flight). These clauses were negotiated when the quality of many regional airlines (especially in the ex-Soviet Union) was a matter concern.
As soon as you are well prepared, develop a clear idea of the raise that you want. If you do not have a clear demand then you defeat part of the purpose for asking; again remember that you can also include indirect compensation and benefits as well. Also anticipate what your boss's concerns might be and be well prepared for these.
Now that you are prepared, make sure your boss is as well. Discussing a raise, unless it is done within the framework of a promotion or performance review, requires a one-on-one meeting. Inform your boss that you would like to discuss a raise and schedule the meeting; preferably on a day and at a time when he/she does not have other pressing commitments.
Of course, if you have an annual review, then this provides the best time to discuss a raise. In this situation, keep in mind that if the increase in responsibility is recent (within the last six months), your boss may want to see the results before considering the raise.
Finally, be prepared to negotiate. Recognize, especially in the current economic climate, that your demands may not be fully met. So have a fallback position with some alternatives and acceptable compromises.
If the answer is 'no' or 'not now', it is important to discuss the reasons and when the discussion could be revisited. Sometimes the current economic situation or budgeting constraints are real issues. However, these can then be addressed in the future - in three or six months when a new budget is being planned. Also, bear in mind that your boss may not be able to get back to you with an answer immediately, especially since in many of today's flat organizations he/she may need to consult with HR or his/her supervisor.
It is important that you do not make threats, since this can lead to irreparable damage to your image or relationship with your boss. If you threaten to leave if you do not get what you want, and you do not get what you want, you may be forced to leave (or your stature within your company will be damaged).
Finally, as you consider your raise, remember three key elements of this discussion that are often forgotten. First, remember that most bosses are experienced at this type of discussion; it goes with the territory as part of budgeting and planning. Secondly, if your boss is satisfied with your performance he/she will not begrudge you the raise (although they may have limitations on what they can offer). Thirdly, your own understanding of the value of your performance and commitment to your employer are both important parts of their valuation of you. A well-handled negotiation is part of the relationship building - and therefore career development - process.
Matthew Tebeau, the Managing Partner of Ray and Berndtson Poland and the Baltic States
