How to Ask for a Raise

If you work for a small to medium sized business, there may not be a defined program for annual raises. Even some large companies do not have a policy in place for annual reviews and raises, so it's up to the employee to ensure proper compensation.

When To Ask
One of the worst things you can do when asking for a raise is to ask for a raise too frequently. Unless you've done something extraordinarily spectacular that had a major impact on the company's success, then you should wait a year between each raise. Even if you believe that your previous raise wasn't sufficient, it's still appropriate to wait a year. Although persistence is typically an asset in the business world, it can do more harm than good when asking for a raise.

If you did not receive a raise the last time you requested one, then it's acceptable to ask six months later. When you take this approach, however, be sure that you have a good understanding of why you didn't receive the last raise you asked for. If it was performance-related, do not ask for another raise until you have improved your performance, and can cite three solid examples as proof. If it was related to the company's finances and their ability to increase employee compensation, simply ask them if anything has changed within the last six months.

In terms of timing, schedule a meeting with your boss about a week in advance. Make sure that he or she is not over-worked or over stress. You do not want to create more stress for your boss, and you want him or her to be in a good mood when you ask. If it seems like your boss is always very stressed and busy, then suggest a lunch meeting. A lunch meeting outside of the office will ensure that there are no interruptions from co-workers, and your boss will be more focused on what you have to say.

How To Ask
In older, larger organizations, an annual cost of living increase is standard. This type of raise is typically a very small percentage of your salary, designed to help employees maintain their lifestyle as the price of food, gas, retail merchandise, and utilities increases. If your company doesn't give employees an annual cost of living raise, then your boss likely won't see it as a valid reason to grant you one. If you receive a cost of living increase, then all of the other employees should, as well.

The most valid reason to ask for a raise is that you are worth more to the organization now than you were when you were assigned your current salary, or given your last raise. To begin the conversation, speak confidently about why you are more valuable now than you used to be and cite specific examples. A good reason that you might be worth more is that you have obtained more knowledge to do a better job. Perhaps you've gained more knowledge about the specific industry your company is in, or the products and services that your company offers.

Another valid reason that you are worth more now is that you've gained more experience, enabling you to be more efficient and productive. Compare your current work to your work a year ago and talk about how it's improved. Of course, you never want to say that your previous work was poor, but you do want to note that you have leveraged your experience and newly gained knowledge to be more efficient.

If you've been given additional responsibilities since your last raise (or when you first joined the organization) then cite those and talk about your competence in these new areas. If you used to be responsible for only items A, B and C, and now you are also responsible for D, E, and F, then you are obviously worth more to your employer.

Keep it brief, but be specific and engage your boss in the conversation. If he or she seems to be agreeing with what you are saying then there's a good chance that your boss my think you deserve a raise. If your boss seems to be skeptical about what you are saying, then you might want to reconsider asking. If you think your request for a raise will not be received well, then you can back off and say the purpose of the meeting was to talk about your career goals and receive feedback on your performance.

If your boss seems to be on the same page as you with everything you are saying about your performance, then you have the green light. Once you've outlined the reasons why you worth more to the organization now than you used to be, and you've cited specific examples, simply tell your boss that you would like to be compensated accordingly.

How Much To Ask For
In my experience, I've found it best not to request a specific dollar amount or percentage. If you are granted the raise and you think that it's not enough, then you can try to negotiate. If you provide a number that your boss and Human Resources think is too high, they might not grant you a raise at all, so it's best to wait. If your boss asks you how much of a raise you think you deserve, have a number in mind that's reasonable.

You can determine a reasonable amount by doing some research on the job market in your area. For the past few years, a standard annual raise in the U.S. has been approximately 3-4% of the employee's salary. If you think your performance warrants more, then bump up the number by a few percentage points.

What To Do If You Don't Receive A Raise
If you don't receive a raise, examine the reason why and then consider if you wish to continue working for that employer. Ask yourself if you could find a better opportunity elsewhere that will pay you what you are worth.

Assess how truly happy you are in your current position and if you really need a raise to feel fulfilled in that job. Determine if you think you might get a raise at a later date. If you've been working for the same employer for over two years without a raise (and you perform your job well) then that should raise a red flag. If your organization simply cannot afford to give raises, then you might ask yourself how stable your job is and if you would rather work for an employer who is more financially secure.

If you are granted your raise, accept it graciously and treat yourself with a celebratory meal.