You’ve set up a budget, followed it to perfection, and have minimized your expenses as much as possible without losing any sleep. That’s a great feat, and a milestone people rarely accomplish in their lifetime. What’s comes next? What’s your next course of action?
If financial freedom is your end goal, you need to work towards upping your income. The first way most people do this is by leveraging a raise at their current place of employment. With experience, fearless mentality, and logical thinking, this essential skill can catapult your career and positively carry over into other aspects of your life.
Since I’m just learning this subject matter myself, I’ve decided to go in-depth and discuss the Do’s and Do Not’s of negotiating a raise. Since it was way too long to put everything into one post, I’ve decided to break the original post into two: one post for the Do’s and one post for the Do Not’s.
Do #1: Track Your Accomplishments
Before the thought of asking for a raise pops into your head, you need to have a detailed recollection of your past and present work performances. At the end of three, six, or twelve months, you should be able to look back and see how much you’ve grown, the responsibilities you’ve taken on, the money you’ve made for the company, and so on.
Let’s say you haven’t tracked you work performance, and at your end of year review, ask for a raise without any evidence of deserving one. I guarantee you won’t be happy with his/her answer.
I highly recommend keeping up to date with a work resume for your current job and every job after going forward. Not only will it refresh your memory when you looking to get of a raise, but it’ll also help with developing your personal resume as well.
Do #2: Know Your Worth
You’ve decided that you’re worth more than what you’re getting paid. Now you need to determine how much by establishing a target income you’re striving for.
The first step in getting that raise you want is to compare your value to what the market has to offer. Use job salary sites to make sure your salary is in align with other salaries in the same industry, similar cost of living, and comparable qualifications and roles.
Glassdoor.com has a great tool that analyzes your salary and does the work for you. Go into the discussion with your manager having a target number clear in mind.
Do #3: Set a Timeline
Once you’ve determined that a raise is in order and you have a specific value in mind, you need to organize a game plan.
If you’ve waited until the end of the year review to first bring up a raise, you’re probably not getting it anytime soon. It takes time for managers to get your raise approved. Typically, larger companies have more loopholes, making the process of getting a raise that much harder and time-consuming.
If you think you deserve a raise, you need to plant the idea of a raise into your managers head long BEFORE you want it.
Spark up a raise conversation with your manager about a month or two before any reviews get going. This gives your manager time to think and take action if he/she believes you deserve a raise. After the review, and if it went well, ask for a timeline on the raise process and follow-up with a discussion or two in the weeks following your review.
Do #4: Be Aware
I know this is a broad statement, but you need to be mindful of what’s going on at the company you work for.
If you had a hefty raise last year, the odds of you getting back to back large raises is very, very small. The only way this happens is if the company loses large sums of money by losing you.
Also, if other coworkers’ reviews begin before yours, and good, hardworking employees aren’t getting the raises they want, what makes you think you’ll be any different? You know who deserves raises compared to the ones who don’t. You’ll quickly get a clear picture on how raises are being managed.
If the company recently had layoffs or sales were flat, don’t expect a significant raise increase (maybe even one at all). Sometimes you DO deserve that raise, but there’s no way in hell you’re getting one. The company just can’t afford it. Some things in the corporate world are out of your control.
There’s a reason for determining your value first, before you even mention any raise. You want that raise, and I get it, it’s not fair if it doesn’t get approved, but that’s life. You fight for what you believe you deserve, but there’s only so much money a manager can pay you. So, what’s your solution?
Look for work elsewhere and get the money, work experience, and life YOU truly want!
Hope you enjoyed this week’s blog post! Stay tuned for the Do Not’s of negotiating a raise. As always, don’t forget to like, comment, share, and subscribe!
“The reason why people are seldom satisfied with their salary is that when it increases, they increases their expenses.”
Book of the Month: “Set for Life: Dominate Life, Money and The American Dream” by Scott Trench