How to Negotiate a Raise

Talking about money is hard and asking for more of it is even harder. The good news is that the economy is strong right now and unemployment is low, and that’s typically an ideal time to ask for a raise. But before you start crunching numbers and adding seats to your Netflix subscription, there are a few things you want to consider. Here are 3 tips to help you successfully negotiate a raise:



Ask at a great time.
The best time to ask for a raise is after you’ve done something great. This means picking a strategic time that just happens to occur right after you’ve reached a milestone or met a goal. Your boss needs to see results to be convinced, and you need results to prove why a raise is deserved. Raises are rarely handed out with the understanding that you’ll work harder—they’re handed out when you’ve already worked harder! Asking at the right moment is important too, so don’t ask when your boss is under major stress (either personally or professionally).

Know how much to ask for.
Don’t make up a ridiculous number. We’d all like to make $15,000+ more a year, but that’s not practical (or likely). Here are some figures to keep in mind: the average merit increase is around 2-3% of your annual salary, and a generous increase is 4-5% of your salary. To justify a raise over 6%, you must be able to demonstrate amazing results in areas like cost savings, business growth, and productivity. Don’t high ball your request hoping they’ll meet you in the middle—this can work against you. Instead, research the market rate for your job in your area. If you’re doing outstanding work and making less than the going rate, this is great leverage. If you’re earning the market rate, and you’ve recently had some professional successes, this is also great leverage. If you’re paid well above the market rate, then you’ll need to work harder to demonstrate why you’ve earned a raise.

Know why you’re worth it.
We talked about asking for a raise at a good time, but it’s important to be able to articulate why you’re an asset and remind your boss of the value that you bring to the table. This is true whether you’re negotiating a raise with your current employer or if you’re trying to get a raise in a new job. Have you grown a major account to a new level? Have you solved a big problem that your company has been struggling with? Have you saved the company money in a major way? Have you revolutionized a flawed process? Have you come up with a game changing idea? These are great examples of ways that you can demonstrate your value. Examples like these will help your boss see that giving you a boost in your salary is well worth it!

Sometimes, even if you’re exceeding your goals, you may get turned down. Hearing the word “no” doesn’t mean that you’ll never get a raise though—many companies only hand out raises at certain times of the year (like during annual performance reviews). Conveying positivity in the face of rejection is challenging. If your boss tells you a raise isn’t possible right now, respond professionally and say, “I understand. Do you know what milestones I would need to reach or what kind of timeline you think would be realistic?” Then, take note of the answer you get and set your sight on the new goal!