Episode Summary:
In this week’s episode, we share tactical advice on how to ask for a raise. It can be very stressful to ask for more money, and many people who deserve more never get the nerve to ask for it. We encourage everyone to thoughtfully consider if they should be getting a raise and then dig into how to approach the process of asking for one.
Episode Notes:
We learn Mike’s never asked for a raise, but he is a finance business partner who is often the one approving raises. And Maggie has successfully asked for at least one raise and was in a leadership position where she was often asked for raises and the person deciding if it was going to happen or not. We share our best tactical advice on how to ask for a raise.
How to ask for a raise:
- Do your research. Know your worth in the market, either through other job postings or offers, what you know someone else makes at your company, etc.
- Know your performance and value at the company. What have your past performance reviews been? Above-average? If so, you might have a strong case. If not? It’s likely not going to happen.
- Don’t point to knowing someone else’s salary, it’s not a core reason to get a raise. It’s more likely to put you, the person whose salary you somehow know, your hiring manager, and HR in an awkward spot. There are plenty of reasons why people are paid differently. Focus on what you feel you’re worth and the desire to get paid for your worth.
- The best advice Maggie was ever given is don’t demand something right now. After managing people for a decade-plus, she now sees why this advice was given to her. It’s tough when you put someone on the spot and demand something right away, the answer is rarely going to be yes unless it’s a small company and you’re talking to the owner who can agree right on the spot.
- If you have an actual competing offer from another company, that is one of the easiest easy to get a raise but be ready to go take that other job if they call your bluff. You can either actually resign and wait for them to ask if there’s anything they could do to keep you, or you could upfront let them know you’re looking and have an offer, but you’re primarily only looking due to wanting to get paid more equitably and that you’re willing to stay if they can increase your salary.
- Be respectful, be patient, and think like a people manager. A huge piece of this is how you ask for it, not even what you ask for. The how is critical.
- Don’t be resentful if you don’t get what you want. You can either leave or stay and be engaged, but staying and showing your frustration will be picked up on by everyone, and you’ll have lost the opportunity for future favors.
We wrap up by discussing how to negotiate more money when you’re switching companies for a new job.
Top 3 Takeaways:
- Know your worth and what you care about.
- Don’t ask for something today; ask for a plan to get to where you want to be.
- Know your talking and your walking points.
Show References: