At Young Adult Money, we frequently cover how to make more money through side hustles. But what if the side income just isn’t enough?
One way to increase your paycheck is, of course, to ask for a raise. And the truth is, you probably deserve one. Less than half of working Americans ever even ask for a raise and close to 30% are uncomfortable negotiating salary, according to a new study by Payscale.
However, your organization has put a lot of time and money into you – and smart employers understand the repercussions of unmotivated, underpaid employees. You probably have more leverage than you think you do! So, how should you ask for a raise, and when do you know it’s the right time?
I’d love to share with you a story.
I started my ‘real’ career at a startup financial company almost four years ago. I say ‘real’ because it was the first time I actually made enough money to pay off my credit card bills, move out of my parents’ apartment and contribute to a 401(k). Big moves here, people.
I was technically hired as a ‘communications specialist’ but in true startup fashion, I really wore whatever hat was needed at the time. (You’re welcome for that pun.) My role was focused on managing our blog, writing for various projects and ensuring consistency across brand communications. That was year one.
Let’s fast-forward to year three. Our marketing team had grown to about ten people and I was now a lead writer, marketing manager and brand resource for a variety of projects, in addition to the job responsibilities I had had since day one. This is when I stopped and said, wait a minute, this is way more than what a communication specialist does.
So, I did some research. My job duties were a mix of content strategy and marketing manager, with copywriting mixed in. If my responsibilities had changed, shouldn’t my salary as well? If I was rocking it at work – and could prove it – shouldn’t I be compensated accordingly?
The answer is, hell yea! I asked for my first raise then – and got it. Trust me, champagne – I mean sparkling wine (#budgetfriendly) — never tasted so good. But I didn’t stop there.
Eight months after landing my first raise, I asked for a second one.
Now I know this goes against all of the rules – like the one where you’re not supposed to ask for a bump up in salary more than once a year. But I had added a huge milestone to my resume – I was now managing people! Like a whole gaggle of them. And we were crushing it.
So, once again, I went back to crafting the argument of why I should get a raise. Turns out adding management experience was the leverage I needed to show that I had taken on new responsibilities outside of the previous job description and salary. After three years, I had raised my salary by 35%.
How often can you ask for a raise? I say throw out the rule book. If you can demonstrate tangible and impactful ways you drove the business forward – ask away.
I know what you’re thinking … well, goooood for youuuuuu. Fair enough. I know my situation was fairly unique to work in a place with so many growth opportunities. So, let’s skip to the part where you get something tangible from reading this far into my post, shall we?
Here’s what I learned, and what you can do to land a raise or promotion:
1) You Have to be Willing to Ask for It
I have two personal mottos. One is a passage taken from Eat, Pray, Love (don’t laugh) and the other is my mother’s constant reminder.
The first as written by Elizabeth Gilbert goes like this: “There’s a wonderful old Italian joke about a poor man who goes to church every day and prays before the statue of a great saint, begging, ‘Dear saint-please, please, please…give me the grace to win the lottery.” This lament goes on for months. Finally, the exasperated statue comes to life, looks down at the begging man and says in weary disgust, “My son-please, please, please…buy a ticket.’
Now the other phrase is something with a very similar point, but in fewer words – spoken in my mother’s voice: “The squeaky wheel gets the grease!” The point is, you don’t get what you don’t ask for. You’ll never know if you can get a raise if you don’t ask.
2) Keep a Critical Eye on Your Job Title
This can be challenging for young employees today because we don’t necessarily fit into traditional roles with cookie-cutter job descriptions. Especially those at agencies or startups, where responsibilities are often cross-functional.
It’s important to keep a critical eye towards the things you’ve been tasked with doing. I’m not saying stay within your job description, I’m saying recognize when you’re routinely outside of it and taking on new roles. Which brings me to my next point…
3) Know Your Worth
We all know it’s a taboo subject to talk about how much you make. However, this social norm prevents people from even realizing when they’re being underpaid.
Do your research and make sure you know the market value of your job. Let’s start talking openly about this! Websites like Payscale, Glassdoor and talent agencies all provide this information.
4) Ride the Coattails of Your Last Success
Try to time your raise requests after a big accomplishment or success. Not only will you be able to add that accomplishment to your list, but it will be fresh in your managers’ eyes.
5) Avoid Ultimatums
Unless you’re ready to lose your job, don’t use ultimatums like, ‘pay me this or I’ll find someone who does.’
If you’re underpaid for your role, giving examples of what other companies are paying for your position will speak volumes. Focus the discussion on the fact that you want to continue being an invaluable asset to the business, but you expect a competitive salary.
6) Make it Easy to Remember Your Accomplishments
Do yourself a solid and prepare for a promotion or raise request from day one. How? Keep a folder system handy to store accomplishments as you go. I have an email folder that I use to easily store information that might help showcase my performance. This includes everything from positive feedback from other co-workers, to monthly reports.
Editor’s Note: DC here. My system is to keep track of my accomplishments in an Excel spreadsheet (I know this is shocking for anyone who knows me). Then when I’m writing my annual review, asking for a raise, updating my resume, or prepping for an interview I have all my accomplishments readily available. My suggestion? Do what works for you.
7) Equip Your Manager With the Right Information
Your manager most likely won’t be the only decision-maker in this process. They’ll have to turn around and advocate for your raise to their leadership or HR.
Make this as easy as possible for them by writing down your salary requirements and the justification for why you should g et a raise. Need help formatting this information to be as persuasive as possible? I created a simple template that you can download to fill in your raise request information. Bring this to your meeting with your boss and then send them an electronic copy in your follow-up.
8) Understand the Review Policy
I learned this one the hard way the first time. My company’s fiscal year meant that they gave salary adjustment twice a year – reflected in payouts in June and January. My first raise request was given in February, which meant I had to wait three months just to hear back, and another month to see it show up in my paycheck.
The second time around I had realistic expectations for how long this type of decision took, and when the payout might happen. Ask your HR department when reviews are, and try to align your request with your company’s fiscal year. However, if you can’t find that out, read on to my next point.
9) Be Persistent
It’s probably not realistic to get a same-day answer on your raise request, however, feel empowered to check in with your manager or HR if it’s been a few weeks. Make sure you politely keep this top of mind for them. After all, it could be higher paychecks that you’re missing out on!
How to Use the Raise Request Template
Just one simple Google search can show you just how many people are looking for sample letters to help them ask for a raise. Let’s get rid of the boring, long letters and do you one better. I created a new and improved raise request template that:
- Clearly states what you’re asking for – whether that be a salary increase, new job title, or both
- Organizes your key work accomplishments
- Highlights job responsibilities that may be in addition to what was originally in your job scope
- Compares salary averages to similar positions in your city
Download the free template today!
Join our Online Community to Receive your FREE Raise Request Template
Let us know how it goes for you! Best of luck on your salary increase endeavors. I’m sure I’ll be reading about you in #40under40 in no time.
What is the hardest part about asking for a raise? What other tips would you add to the list? Add a comment.
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Congrats on receiving 2 raises within one year! I think knowing your worth is the most important thing. Knowing your worth helps to provide the confidence needed to ask for a raise.
Thanks, Tia! Very true – it all starts with having the confidence to ask for what you deserve. Thanks for leaving a comment!
Good insight Ashley. I think so much of it comes down to knowing your worth and actually getting the gumption to ask – being afraid you’ll be told no. Another saying I like is “You miss 100% of the shots you don’t take.” and it fits with this idea of asking for a raise – if you don’t ask it’s just not going to happen. Far too often the powers that be won’t notice what you’re doing and you won’t get the raise/promotion/etc., you need to step up and ask…and be able to know where to go when they respond.
John – another great saying! And good insight about knowing where to go with the response …. how you react to situations is half the battle. Thanks for leaving a comment!
totally agree, sometimes fear stop people to ask something but your post is really encouraging!!!
Thanks, Giulia! I hope it inspires people to take a second-look at their salary and feel confident in asking for a raise!
I would LOVE to ask for a raise, and I feel like I both deserve it and my manager would approve it – except I work in a union environment. So, my merits and my accomplishments count for nothing. The only raise I’ll get is based off of seniority and contract negotiations. Both things that I can’t really control. It’s no wonder most of my coworkers don’t do anything “above and beyond”.
Hi David,
Congrats on your raises that is awesome. I think this is something many people are uncomfortable addressing. You have to stay persistent (if you are a high performer) or else your wages will stay stagnant. Ultimately if you are high contributor and they don’t hear out your request for a raise you are most likely in the wrong firm to grow and need to challenge yourself to find a new position.
Hey this is a post from Ashley, one of the contributors on the site. I can’t say I landed two raises in one year!
I received a raise twice in a year two different years, but I never asked for them.
The first time was the annual merit raise and then they did a “market conditions” raise because our competitors were paying $5,000 to $10,000 more for the same position and our company was tired of losing supervisors who would follow the money.
A second time was the annual merit raise in the Spring and then I was promoted in the summer. I guess the promotion was technically asking for a raise.
You have a good suggestion of tracking your work progress, it’s something tangible to give to the boss when they might not think you’re pulling your weight or you get a new boss that doesn’t know you from Adam.
I think a big problem with many people is that they are often too scared to ask for a raise. They will wait and wait, not look at the current going rate in the market, not seeing your actual worth, etc. Keep checking jobs for the industry online and see what the average is, remove the taboo and ask your colleagues so you know what they are getting paid in comparison to you. Don’t be afraid to ask, as long as you think you deserve it and have evidence there is no reason to worry it.
I received a small raise this year at my job. While it was ok, I wanted more. I work for a college and they are not budging right now. The good thing is that I have side hustles to help me out with extra money.