Asking For A Raise

Ask for what? A Raise? In this economy? With business being so slow the past two years? The answer is a resounding “yes.”

Ask for the raise you deserve. Notice that I didn’t say ‘think’ you deserve, because your boss may ‘think’ differently. But before you ask, you must prepare and plan.

Prepare the documentation detailing why you deserve the raise. What have you done for the company? Being a loyal and dedicated employee is not enough these days. Companies expect employees to go above and beyond the requirements of the position as part of the job. Prepare to show, in dollar signs, the affect you have had on the bottom line for the company.

Perhaps you or your department is not what the company considers cash generators, yet you still add value to the company’s bottom line. An example is the Human Resources Department. Companies often view HR as a drain on cash flow since no money is generated. Upper management doesn’t realize the impact that the HR Department has on the company from a recruiting and retention standpoint. Make sure to document what the turnover rate is, how long it takes to recruit and fill positions, what is the cost-per-hire, where the growth, cost savings, and improvements are that you’ve contributed to positively impact the bottom line.

In the Sales Department, numbers are much easier to document. The increase in sales within a certain time period, the increase in gross or net profit, the increase in number of new customers, and the retention of existing customers are easier to show. If you work for a small company that does not have different departments and you are expected to wear many hats, show quantitatively how effectively you wear these hats. It may take some work to dig for the numbers, but if you deserve that raise, it deserves your attention.

Plan the timing when you ask for the raise. Avoid the obvious stressful times of the business. Avoid January - April 15th in a CPA firm, as well as the quarterly tax deadlines. Ask during the slower time of the year. You do not have to wait for your performance review. You want to be viewed as a team player with a positive attitude and impeccable work ethics. You need to show that you are more than just the items addressed in a performance review.

Bravely ask your supervisor for a time to meet, and let her know what you would like to discuss. If you break the ice before the meeting as to the topic of discussion, you are likely to be less nervous and more in control.

Do not go into the meeting with threats in mind. Threatening to quit unless you get the raise you deserve makes a supervisor/company feel like a hostage. You may get a knee jerk reaction and they may call your bluff. A threatening attitude may put the company on guard that you will leave. If you have clearly proven that you deserve the raise, yet the company cannot deliver at this time, ask when can you revisit the issue again. This message will let the company know that you are in it for the long haul and are willing to wait.

Bottom line is that you realize what your value has been to the company by quantifying the effects you and your department have had. Should you discover during this process that you are not where you thought you were--you now have clearly defined goals. Ask your supervisor if you are on target and go for it!