Illustrating the trepidation the thought of this conversation can cause, a Robert Half study found many workers would rather clean the house, get a root canal or be audited by the IRS than talk compensation with their manager.
Their anxieties may be because they don’t know how to ask for a raise, which is not something most people do regularly.
How To Ask for a Raise
The reality is, now is the time to ask for a raise. In today’s competitive hiring environment, CFOs are concerned about retaining top talent and are handing out promotions and boosting salaries to keep staff on board. Separate Robert Half research found executives are increasingly open to negotiating nonmonetary perks as well.
Ready to take the leap? Here are a few tips on how to ask for a raise:
- Give quantified reasons. Your boss will want to know why you deserve a raise, and your rationale will have more of an impact if it includes facts and numbers. How many hours did you save your team during the ERP implementation? By what percentage did you reduce processing time in the last quarter? Before you sit down with your manager, compile a list of figures.
- Know what you’re worth. This is arguably the most important tip on how to ask for a raise. If your request is outside of a reasonable range, your chances of being turned down are greater. Ask for too little, and you’ll leave money on the table. The most recent Robert Half Salary Guide for Accounting and Finance and Salary Calculator can help you benchmark the salary for your position and city. Reports such as the Occupational Outlook Handbook from the U.S. Bureau of Labor Statistics also provide valuable insights.
- Schedule the discussion for an appropriate time. Keep in mind the firm’s calendar and your manager’s schedule. Year-end closing and the end of tax season are busy times — not ideal for talks about promotions and pay increases. But don’t wait until right before the holidays or your supervisor’s two-week summer vacation either. Ideal moments are after a quick, clean close or when the company exceeds a quarterly or annual goal.
- Be persistent (within reason). If your employer says no or not now, try negotiating for nonmonetary perks, such as extra vacation days or working from home once or twice a week. Also, don’t forget to ask what you need to do to earn a raise in the future. Your boss will appreciate your professional drive, and you’ll know what skills to work on.
You may not think you know how to ask for a raise, but you do. As with anything, you’ll increase your chances of success when you do your research, practice your pitch and project a picture of confidence.
Empathy Is Key for Managers
When meeting with employees looking for a pay increase or advanced position, managers need to keep in mind the anxieties that popped up for them when they were in a similar situation. Make sure you create an environment where staff feel comfortable coming to you and know you will listen to them, give their requests the proper attention and do what you can to help them meet their goals. Even if you are unable to extend a raise or promotion immediately, your employees will appreciate your consideration and work to help them advance in their careers.
Tim Hird is the executive director of Robert Half Management Resources.