We spend a lot of time talking about how to cut expenses to free up a tight money situation. But don’t forget the flip side of the budget coin: increasing your income.
The fastest and easiest way to do that is to ask for a raise; Yet for some reason, women are reluctant to do it. We rationalize: “If my boss had the budget, he’d have given me a raise already.” “I’ve accomplished a lot this year – I’ll get a boost at my annual review.” “The company has comp policies that are fair…right?”
Not necessarily. Here are three ways to get confident about asking for more money:
- Reframe it in your head.
This is not about “confronting” your boss or asking for something unreasonable. You are a proven commodity, unlike that new hire who may be making more money than you. It’s not that your boss is intentionally unfair, it’s just that the talent market changes dynamically and to get that new hire to say yes, your boss had to offer more. There was a deadline and she didn’t want to lose the fish on the line.
The truth is, you are in a better position than your boss and HR to know what the going pay rate is for your specific position, skills, and experience. And she doesn’t remember all the things you’ve accomplished.
Remind yourself: this is a fair request, and you will ask in a way that is diplomatic and respectful. Could she say no? Possibly. Will she reduce your salary? No. You literally have nothing to lose.
2. Do your homework.
Pull out your latest performance review, check your calendar and to-do lists and write up a Cliff’s Notes summary of your contributions to the company’s success. The more you tie it to the bottom line — revenue growth or expense reductions — the better. Make it no more than one page: a succinct, bold reminder of what you’ve done. Trust me, your boss will not remember.
Google pay and salary levels using LinkedIn, Glassdoor, and other sites. Ask friends and colleagues what pay range they’ve seen or would expect. Know what jobs like yours are paying for people with experience like you. Note any special credentials, experience and contributions that make you different, better.
3. Time it right.
Start early. Bring up the topic well before your annual performance review, so your boss has time to consider your request and get necessary approvals. When you wait til annual reviews, you’re competing with peers and a tight salary budget. Off-cycle increases happen all the time, and it can be easier for your boss to justify an ‘exception’ mid-year. At worst, you have to wait for the review cycle — but your boss has a heads up.
Practice your ask out loud with a friend or in front of the mirror: “I feel good about all the things I’ve contributed to our growth in the past year. I also know we’ve done a lot of hiring lately, and I’m wondering if my pay is still competitive. Would you please take a look at my contributions (hand over the summary) and review my salary to see if it’s fair?” Repeat until your voice is smooth and confident.
Asking for a raise may feel uncomfortable, but it can pay off for years to come. Every time your salary grows, future raises and bonuses are a percentage of that larger base. So get over your reluctance: reframe it in your head, do your homework, and ask early.
It’s one of your most powerful budgeting tools.