how do you ask your boss for a wage raise increase more pay more money from work?, The art of asking for more?, Negotiating a sweeter pay package requires finesse, a proven track record--and a bit of moxie.
These days you have two advantages when you go into your boss' office to ask for a raise: First, you have instant access to the best compensation intelligence around, thanks to the Internet. That goes a long way toward leveling the playing field between employers and employees.
Second, today's tight labor market has left employers scrambling to replace talent, and many would rather hand out raises than let valued workers quit. A study by the Financial Executives Institute reports that 52% of employers spend $20,001 to $50,000 to replace mid- to high-level executives who earn $70,000 to $150,000 annually, because of the high cost of recruiting, lost productivity and training newcomers.
"Assuming you're in good standing and held in high regard, there's absolutely no reason not to ask for a raise," says Jane Weizmann, senior human-resources consultant with Watson Wyatt. "That's especially true if your salary hasn't kept pace with the market."
Nevertheless, when it comes to winning a fatter paycheck and perks such as stock options and a signing bonus (if you're applying for a new job), old-fashioned negotiating still applies. After all, just because your salary pales next to those you see online doesn't mean you merit more dough--or that you'll get it. "You can't just go to your boss and say, 'Here's the data to prove I deserve a raise,'" warns Weizmann. You still need more ammunition--experience, proven performance and contributions--and a winning strategy. Here's how to proceed:
Enlist your boss in your efforts. "One of the most successful tactics I've seen is to enlist the support of a manager," says Michael O'Malley, author of Are You Paid What You're Worth? "You can say, 'I think I've been a good performer over the years, and I see what other organizations are paying. My pay doesn't strike me as right. Could this be something we investigate?' Very often a manager will go to HR and argue that salaries are off. If you're a good performer, they'll want you to stay."
Don't name your price. There's great temptation to blurt out a figure when you're asked what you want to earn. Don't do it. You may end up stating an amount far lower than what your employer is willing to pay. "Keep the numbers in the back of your mind while negotiating," explains Weizmann. Express your desire to earn a reasonable salary that reflects your skills and achievements, but don't get into specifics. If you're asked by a potential new employer what you earned at your last job, you may politely say that it isn't relevant or that you were underpaid.
Time your request. Most salary reviews occur after annual performance meetings, but that doesn't mean you have to wait to ask for a raise. Not surprisingly, the best time to request a pay hike is after you've accomplished a goal or achieved some notable success. "If you're having a good year, and you know that merit budgets aren't that big, it's sometimes good to politick ahead of time about your expectations," says O'Malley. "Then everyone will be aware that you expect more."
Ask for performance pay. Hewitt Associates recently found that in 2000, salaries of U.S. executives are projected to rise by 4.4%. One-time bonuses will leap by 16%, however. That's because many employers prefer to give incentive or performance-based bonuses, which can be linked to such things as profits or productivity. Raises permanently affect the bottom line.
Don't accept just any deal. If you've been a good worker, ask your boss to explain the reasoning behind a skimpy offer. Then set a target date to review the situation.
Don't be confrontational. "A company isn't required to pay you a competitive rate," says Erisa Ojimba, Salary.com's compensation consultant, who also writes a career-advice column for the site. So approach salary negotiations as a cooperative dialogue. Be confident and polite. If you don't get the results you want, you can always look for a new position. Don't threaten to quit, but at the same time, don't promise to stay. Remember, if you want more money, you may have to mine gold in some other hills.
Ask Your Boss for a Raise During the Recession
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