hand holding money out of reach

b&b45 How to Ask for a Raise and Get It

We spend a lot of time thinking and talking about how to cut back on expenses, spend less, and save more. The other half of the equation is making more money.

On this week’s show, we talk about proven strategies to ask for a raise and what your mindset should be when you go into it. We go through a step by step process on how to think about it, what to prepare when you ask, how to ask, and what to do if you get a no (for now).

If you feel like you’re due or overdue for a bump in your salary (cost of living increase doesn’t count!), this is a must listen!

Episode Highlights:

Pam: The idea of losing you should pain the employer enough that they want to pay you more just to stay. It’s way more expensive to spend months and months training someone else than to keep somebody who’s been there already and keep them happy. So if you are that valuable of an employee, and I’m sure that you are, then it is your duty to yourself and to your company to ask for more money.

Pam: I do a lot of negotiating all the time, it’s just low stakes. I negotiate to get charges reversed on my credit cards, and I call the bank and dispute charges with them. I negotiate with my cable company to get them to lower the bill. And so the idea of talking to someone and getting them to do something that you want while they also feel that they’re winning at the same time is something that I practice all the time. And so that might be tip number one, is just start negotiating in low-stakes environments. Start negotiating in a way where you can’t lose and the person on the other end can’t really lose either. You know, even if you don’t come to an agreement, the customer service person on the other end just hangs up and talks to somebody else. And so do you.

Pam: The last thing you wanna do when you’re asking for a raise is bring in your personal needs when you’re asking for a raise. Absolutely you don’t wanna say, “I need this to pay the bills. I can’t keep working here ‘cause I can’t pay my bills.”

Pam: Step #2 is you schedule a meeting with your boss…try not to do it during annual review time. One, the budget’s already been decided, or your coworkers might be making the same ask at the same time and so there’s a little bit of competition. But, I have to say I’ve always gotten my raises right around annual review time.

Pam: Honestly, you shouldn’t be asking for a raise if you can’t prove that you have helped the company in some way in the last year because you will get a no and that will suck.

Dyalekt: People often don’t understand that that little increase they’re getting is cost of living. They think that it’s another thing that is commensurate with your skill and experience and all that. That has nothing to do with it.

Pam: If your company doesn’t call it [a] cost of living [raise] and it’s only 2% or 3% then they’re lying to you. They shouldn’t call it a raise. It’s cost of living increase, for sure.

Pam: So, think about what you have done to make the company more efficient. Results from a project. If customers love you, collect that. If you’ve gotten praise from your boss’s boss or any other higher-ups, that might be good. And also keep in mind, your job is to make your boss’s life easier, at the end of the day. I don’t care what you do or what company you work for, unless you’re the boss your job is to make your boss’s life easier. And part of that is not telling him or her every little thing you do to make their life easier….but when it is time to ask for a raise, give an overall idea of all the awesome things that you have taken on for your boss so your boss can do other things that they wanna be doing.

Pam: #1: timing. #2: scheduling a meeting with your boss to start the conversation. #3: collecting evidence. Now, #4: how much do you actually want to ask for? You can figure out what your company and industry salary averages are, there’s websites like glassdoor.com or payscale.com….#5 is ask. Coming up with how to ask for the raise….and then #6 is practice. Practice, practice, practice. It’s gonna seem corny. You should do it anyway. If you’ve never asked for a raise or a promotion before, roleplay. Say things out loud. Have key phrases kind of scripted in your head like “I was hoping for your feedback. I’d love to set a meeting with you to talk about some ideas and my compensation going forward.” Be extremely prepared…#7: preparing for them to say no…if you still get a no, be prepared to ask what it would take to get a raise in the next three to six months. This is not a no forever, this is a no for now….then accomplish and go above and beyond all the things they talked about, and ask for another meeting.

Pam: The goal is to make it really really hard for them to say no. Even if you work there, you’re still always kind of pitching yourself.

Pam: Now, what if that no for now ends up just being a no for a long time? This might be a sign that you might not have anywhere left to go in your job, and it might be time to consider switching jobs…Now here’s one caveat: While you’re asking for the raise, or getting ready to prepare for the no, do not threaten or imply to leave if you don’t get what you want.

Pam: Really the biggest salary jumps I have see with my clients and with myself is when I have switched jobs, versus asking for a raise. You have more leverage. You’re figuring out what you’re worth in the market today, so you’re not working from a salary from five years ago for instance, and you just have more leverage.

Pam: When you are a woman, there are some different approaches that you have to take to asking for a raise.

Pam: When a woman gets a new job, only 7% of them attempt to negotiate their initial offer, versus 57% of men…A lot of researches have shown that it can actually hurt woman to ask for more money. Women are more likely than men to be seen as greedy, demeaning, or, like, not nice..when women ask for a raise.

Pam: Bottom line, whether you’re a man or a woman, asking for a raise is about advocating for yourself and advocating for what you deserve. This has nothing to do with what your need is, or what the company can give you. This has to do with the fact that you are a very valuable contributor to the company, and you deserve to get paid for it.