How to Negotiate a Raise

January 5, 2022

This is a Flashback Post from 2010.

I found three of these old draft posts that were half-written from over a decade ago. Most of the information is just as relevant today as when I first wrote it, so I decided to finish writing them, with some modern perspective.

2010 – How to Negotiate a Raise
2010 – Living with Debt
2009 – Paying your Bills

What are you Worth?

(2022) I started this post right in the middle of the Great Recession and it was a really bad time to ask for a raise. Maybe, that’s why I never finished it and left it sitting in the Drafts folder. Employees were scared to death of getting laid off, because there weren’t many jobs available, and they knew they could be out of work for a long time. Employers were taking full advantage, by skipping raises and low-balling new applicants. Desperation was in the air.

Today the employment conditions couldn’t possibly be any better for employees. There are 11 million open jobs and very few workers to fill them. Employees have gotten used to working from home and they don’t want to commute back into the office. Workers need more income just to stay even with the high inflation. Right now, it’s the employers who are desperate, so it’s time for you to take advantage. Salaries have risen dramatically in the past year, so make sure you aren’t falling behind.

Asking your Boss

(2010) The most important thing for me was to realize how vastly underpaid I was. Until that happened, I just figured I couldn’t do much about my salary. Boy, was I wrong and here is what I did to correct it.

Step 1 – I found out what I was really worth. I checked my job title against the average salaries in my area, using one of the free salary surveys. I found out I was making about 45% less than I should have for my position.

Step 2 – I prepared to ask for a raise. I put together a one-sheet review that showed what I was making compared to the standard pay for my position. I also listed all of the things I had done for the company and how I was saving them money by doing all the work myself, instead of paying consultants.

Step 3 – I went to my boss and asked for a raise. He was aware of how much trouble I was having buying a house and he gave me the raise I asked for. It was a win for both of us, because it would cost more to replace me.

Caution: Never threaten to quit if you don’t get a raise. Not only is it unprofessional, it’s risky. I know someone who tried this approach and the boss said, “In that case, I accept your resignation.” They walked her out of the building right then and since she had quit voluntarily, she didn’t qualify for unemployment.

Lessons Learned

(2010) So, my success came from each of the following things:

Realization I was worth more
Preparation in asking for a raise
High-demand skills made me marketable
Networking and helping others got me jobs
Hard work and reliability made me valuable

(2022) Not only did I get the 30% raise I asked for initially, I got hired away six months later and got another 20% raise on top of that. One of my former co-workers referred me to his new company and they hired me. Two years later, my old boss hired me back, gave me another raise and the management title I had been denied. Within two years, I doubled my salary and got promoted into management. My career and pay both took off from there.

The biggest lesson from my story is if you don’t get paid what you deserve from your current employer, you most likely will from a new one. Don’t get upset or discouraged if you don’t get the raise you asked for. Act gracious towards your boss and keep doing your job to the best of your ability. Start looking around for a new employer who will pay you what you are worth. There are 11 million open jobs and one of them may be just perfect for you.

The Bottom Line

When it comes to your salary, you can’t be passive and hope for more income. You need to be inquisitive in finding your real value in the marketplace and assertive in making sure that’s what you are paid.

“My salary situation at ‘Morning Joe’ wasn’t right. I made five attempts to fix it, then realized I’d made the same mistake every time: I apologized for asking.” – Mika Brzezinski