How to ask for a raise 💵
The not-so-subtle art of being direct (even if it’s uncomfortable) and asking for more.
“I want to ask for a raise and feel like I deserve one. I just really don’t know how to ask and it feels uncomfortable. What should I do?”
Note from Erin: The next three weeks will be a series on the topic of asking for a raise and negotiating! This Part I of III. Part II is here and Part III is here.
Quick answer
“How much are you willing to pay to avoid an awkward conversation?”
Alexandra Dickinson, a negotiation expert, posed that question when I interviewed her for Broke Millennial Talks Money: Scripts, Stories, and Advice to Navigate Awkward Financial Conversations.
It’s the perfect question. In some cases you might be willing to let a $20 outstanding debt from a friend roll off your back for the sake of just not having the awkward convo. But in the case of your income, please have an awkward conversation!
I can sense many of you thinking: “Okay, sure, Erin, I get it…but how?!”
Let’s start at the very beginning. (A very good place to start.)
Lay the groundwork. Ask for a meeting with your manager. State your intentions to receive a promotion or raise (or both) and ask for constructive criticism to help you get there.
Detailed answer
One of the simplest ways to prove that you’ve earned a raise is to ask for direct feedback and then demonstrate how you’ve exceeded expectations. Obviously, this particular tactic has to be deployed months before you’re gearing up to make your big ask.
Setting a meeting in which you ask your boss for constructive criticism (basically a road map) makes it much easier for you to track progress toward the next promotion and/or raise.
You should also keep a success folder on your computer or as a folder in your email to track triumphs as they unfold.
Stats that shows you exceeding expectations on a project/assignment.
Praise from a coworkers or client.
Data that demonstrates you’re helping the company/your team improve.
Doing work beyond your job title or taking on new tasks.
Taking on leadership role opportunities.
Typically, your boss should know this, but hey, it never hurts to keep track yourself! Plus, this way you aren't trying to find proof months later.
Once you’ve been given your roadmap, you need to know when raises and promotions are generally given. *Spoiler* It’s often when the company is doing reviews. But don’t hesitate to directly ask your manager or HR when budgets get set or when annual reviews will be.
Why should you care about timing to when raises and promotions are given? Because companies have often already set budgets and decided who is getting what by the time you’re in the room for a review. If you wait until the time of your review to make your ask, then it might actually be too late.
After you confirm when the review will happen (e.g. March), you want to set a time to speak with your manager about three to four months ahead of time. You should be asking for your raise in December or January if your company gives out raises and promotions in March.
Self-employed? This is all still relevant!
Keeping track of successes is especially important for self-employed people when updating testimonials on websites or media kits! You should certainly just be able to raise rates, but it never hurts to remind them of your growth and how you’ve brought value to their lives/businesses/bottom lines.
You can set your own timeline for when to raise rates with clients. A one-year renewal or the start of a new project generally lend themselves to raising rates. You can of course ask for constructive criticism, like a traditionally employed person. Or you can also provide a detailed overview of all the successes you had and the ways in which you exceeded expectations. Use this information as the foundation for stating, “This year I’ll be raising my rates to…”.
Next week, we’ll talk about how to make the ask and negotiate!
Love this!
Great, concise insights Erin!
Without proper incentives, operational or strategic value contribution to employers or clients is not that closely related to compensation level or hierarchical titles. So great tips on seeking pro-active negotiation, instead of underselling oneself.
Look forward to parts II & III!
PS: A related thought which I hope and suspect you will expand on - When to seek radically different paths (including quitting) after failing to renegotiate an unbalanced employer/client relationship?