Counting Pennies

As much as you can try and stretch your dollars, there may come a time when you need to accept the fact that you might not be making enough money to cover your basic expenses. While cutting down on extras can help you trim your budget, you should also consider whether it is time to face your boss and ask for a raise.

“The sad truth is that most times you negotiate your salary path when you take the job,” says Lynda Ford, president of The Ford Group, a management and human resource consulting firm. “After that, it’s very hard to get on a different track, barring a jettison to superstardom in the company.” Still, here are some tips on how to get that elusive raise.

1. What kind of questions should employees ask themselves before going in to request a raise?

The first question is what kind of value do you bring to the organization? What have you done to increase revenue, decrease expenses, build ROI or otherwise impact key metrics? Know the pay scale for your job, both in your organization and in the marketplace. Understand the role of total compensation; that is, the value of direct and indirect pay. Although your salary might be $10,000 less, the benefits (like a company vehicle, cell phone, stock options, 401(k) contribution) may put you over the top for your job.

2. What do you think is the one thing you should never do when asking for a raise?

NEVER bring up other people’s salaries.

3. Should employees keep an “accomplishment log”? For what purpose?

Sure - especially if the performance evaluation process is unstructured or non-existent at the company. It’s easy to forget what you did just a few months ago. This keeps it fresh in your mind and helps build a stronger case.

4. Is there a right time to ask for a raise?

Timing can be everything. Best times to ask for a raise: successful completion of a project (meaning you exceeded expectations and metrics), when the company profit margins are up and healthy, as part of the performance evaluation process, when you’ve been given additional responsibilities, when your boss is least stressed.

5. How can employees deal with “NO” as an answer?

No can mean two things. Either you haven’t shown value to the organization or the company simply doesn’t have the money for raises. Know the difference. Ask your boss what you can do to increase your pay. Then, do it.

6. If a raise is not an option, can/should employees ask for a different benefit (a bonus, more vacation time, etc.)? How should this be approached?

Understand the culture of your organization. Some are very amenable and have more latitude with non-cash amenities. For example, time off and scheduling can be a negotiation point.

7. Anything else you’d like to add?

The best way to get a raise is by understanding your company’s key result areas and then making sure your work is focused on achieving and exceeding those indicators. And don’t be afraid to let your boss know about your accomplishments; either in written monthly reports or face-to-face meetings. If you don’t toot your own horn, there’s no music.

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