How Should I Ask for That Raise?

By MICHAEL J. MARTINEZ Posted 15 March 2006 @ 06:53 am EET     Print     Reprint     E-Mail     Comments

AP Business Writer

A: There's a finite amount of money to go around at any company, and the latest surveys show that employers aren't parting with it easily. According to a survey by Robert Half International Inc., 64 percent of employers said they are unlike to offer higher raises than they did in 2005, and 67 percent don't anticipate an increase in bonuses, either.

So if you want a bigger piece of your company's payroll budget, you need to make a case for yourself, a process that actually starts with your last raise or performance review.

Most employers will set goals for their workers at every review, and whether or not you got a raise last time, you need to make sure that you have well-defined, achievable and measurable goals that you can work toward, according to Bill Coleman, senior vice president of compensation at Salary.com.

"The idea is to have those goals, and then throughout the year, talk about them regularly with your boss," Coleman said. "It can be something as formal as a monthly or quarterly meeting, or simply giving them good news in the hallway."

As you work through the year, keep records of your workplace successes. Marc Karasu, vice president of Yahoo Inc.'s HotJobs service, recommends saving e-mails from customers, coworkers and superiors that praise your performance, as well as documents related to your good work.

In addition to documenting your performance, you should also be aware of how much people in your field make. Both Salary.com and HotJobs, among others, offer salary comparison calculators online that can give you an idea of what people in your job, and in your city, are making. Trade publications in your field can also give you an idea of whether your salary is on par with others.

Armed with your successes and a realistic idea of what you can ask for, you then need to find a good time to talk to your boss. You should be aware if your company has set times for personnel reviews or raises. Many companies give out raises on Jan. 1 or July 1, for example, so you should be ready to make your case up to two months beforehand, since your boss will need to make salary decisions well before those deadlines.

Set up a time to sit down with your supervisor, and then talk about your performance. Make sure you address the goals and shortcomings from your last review, as well as your goals for the future.

"Really go in and make a case for it," Karasu said. "Money is never going to be offered to your proactively, so you really have to ask for that raise, and you shouldn't be afraid to do so if you've done a good job."

There are some things to avoid in the conversation, particularly when it comes to whether you need the money. Employers aren't interested in your personal financial situation. And if you can't make the mortgage without a raise, your employer could actually come away wondering about your life management skills and how that could negatively affect your performance.

"If you have a special situation that really was beyond your control, like a medical expense, then perhaps you can find a way to bring that up," Coleman said. "But in general, while many bosses will care on a personal level, ultimately your problems aren't the company's problems. Keep it about your performance, rather than need."

At the end of your talk, your boss may indeed agree that you deserve a raise. If he has the funds available, then you're set. If, however, the company doesn't have enough money to give you a raise _ or the raise you asked for _ you may have a chance to ask for something else, such as increased vacation time, a more flexible schedule, or permission to telecommute a day or two per week.

And of course, your boss may disagree with your assessment of your work and whether you actually deserve a raise.

"If that's the case, try and hold your anger in, because that's not going to help one bit," Karasu said. "That's a good time to ask for areas of improvement that your boss wants to see, and to ask to meet again in a few months to follow up on those areas. And get documentation on everything."