avatarJessie Vee

Summary

The article provides guidance on how to effectively ask for a raise by being proactive, understanding the company's compensation processes, and advocating for oneself based on performance and market research.

Abstract

The article "How I Learned to Ask for a Raise" offers an insightful guide on negotiating salary increases, emphasizing the importance of self-advocacy and awareness of one's market value. It recounts a personal experience where the author discovered a job posting for their position with a higher wage, leading to a discussion with their manager about compensation. The piece highlights that managers often overlook individual salaries after the initial hiring phase and that employees must actively engage in discussions about their pay. It suggests that employees who speak up about their contributions and market value are more likely to receive raises. The article also provides practical questions for job candidates to ask during interviews and for current employees to discuss with their managers to facilitate conversations about performance and compensation.

Opinions

  • Managers are often unaware of their direct reports' current wages or salaries after the initial hiring process.
  • Employees should not assume that their manager will remember or advocate for their pay increases.
  • Companies are aware of the importance of compensation in retaining employees, but this does not always translate into proactive management advocacy for pay increases.
  • The most successful employees in obtaining raises are those who proactively initiate compensation discussions.
  • Researching market rates for one's position, including using resources like salary ranges in job postings, Indeed, Glassdoor, PayScale, and executive pay surveys, is crucial for understanding what one should be paid.
  • Regular performance reviews and informal check-ins are important for discussing compensation and performance, and employees should inquire about the frequency and structure of these reviews during the hiring process.
  • Employees should prepare for discussions about raises by documenting their accomplishments and being ready to discuss their contributions and the feedback they've received.
  • Asking for a raise should be based on one's performance and market value rather than personal financial needs.
  • The COVID-19 pandemic has created a challenging environment for asking for raises, but employees taking on additional responsibilities should prepare for future raise discussions.

How I Learned to Ask for a Raise

An insightful guide on how to ask for raises, from your interview process to your annual review.

Photo by Alexander Mils on Unsplash

You can imagine my surprise when I saw a job posting for my exact position, but with one discrepancy: a higher wage than my own. The posting itself was no surprise, I knew for weeks that we were starting to recruit for a new addition to the team. But shock still rushed through my fingers as I refreshed the posting and thought the number posted must be a mistake.

I expected that part of my responsibilities included training this new hire, but why would the employee start their first day making more than me? I approached my manager and inquired why the posted wage was higher than my own. Was I scheduled to receive a raise? Was this a higher-level position? Was the new employee more qualified than myself?

My manager’s face dropped in shock and I quickly realized she unaware of my current wage, but assumed that my current wage was higher. An Executive Director approved the new wage for our job posting, no doubt in the same boat as my manager, unaware of the current team members’ pay.

As we discussed this was not intentional, I stumbled upon a realization that became the norm in my career. Most managers don’t know or forget their direct reports’ wages or salaries. Years later at a different company, I’d receive weekly emails of “how much does ‘employee name’ currently make?” It seems like the only time the manager remembers is when they approve the starting wage in the offer letter. After that, it’s forgotten.

As a HR professional, this is valuable insight I want to offer employees: don’t assume that your manager remembers your current wage or salary.

As the employee, you know exactly when your first 90 days are completed or when your one-year review is up. While larger companies have formal performance review structures in place, most small companies don’t have that luxury unless a manager sets a reminder on their calendar.

According to Mercer’s 2018/2019 US Compensation Planning Survey, 78% of survey participants, who are employers, cited retention concerns as a top factor influencing compensation decisions. This data illustrates that contrary to your belief, companies woefully aware of the importance of compensation decisions. But that doesn’t equate to management proactively advocating for their employee’s pay increases or promotions. Causes for the lack of checking in with employees results from management training. Those in management roles are often promoted because of their success as individual contributors and lack comprehensive training on how to effectively manage a team.

Who are the employees that get the highest or more frequent raises?

Employees that are successful in receiving raises are the ones that speak up. Speaking up about receiving a raise can during the interview process, at their 90-day mark, or even when they have successfully completed a project and went above and beyond their job description. Those that initiate compensation discussions with their manager or the decision maker are aware that they need to be their own advocate.

How do I find out what I should be paid?

Before your interview, the job posting may have had a salary range. A salary range is a guideline of the minimum and maximum of the pay in that position. If you want to receive a higher pay than the maximum of the range, chances are you would have to get a promotion or accept more responsibility than originally stated in the job you applied for.

You can look at Indeed and Glassdoor postings, but those often are self-reported data and can be lower than what the market is offering. PayScale is another resource that people can use to type in your years of experience, job title, location, management responsibilities, skills, and certifications. All these sources should be a guide to what the market is offering. Executive pay is relatively difficult to find online as you can imagine executives are not rushing to online sources to determine if their pay is equitable. Established companies use salary survey data over self-reported data meaning that they pay thousands of dollars to purchase salary surveys that contain average salaries from data that companies submit. Companies will submit their employees’ salary data to receive a discounted price on the total survey suite, and then decide to use the results to determine their own compensation ranges.

Here are some sample questions you can ask Recruiters before starting a new job.

1. How often are performance reviews conducted at the company?

Asking this question provides insight on how formal or informal performance is measured. Some companies will only do annual reviews and compensation increases are rewarded once a year. On the other hand, other companies may have more informal 1x1 meetings and reward pay increases on performance instead of a specific timeline.

2. What steps and accomplishments would a successful employee need to take in their first 90 days?

The answer from the hiring team illustrates a roadmap on what characteristics, tasks, or accomplishments the hiring manager is seeking for in their ideal employee. The answer in the question also gives you the opportunity to explain how you have done something similar in a previous position, and once you start the job you will have a clear idea of where you should be within the first 90 days.

Here are some questions you can ask your manager in your current job.

1. Do you have time to schedule a meeting next week to discuss my performance since starting with the company? This is a useful question when too much time has elapsed and there have been few discussions on your performance and compensation. Asking for a meeting in the future gives your manager and yourself time to plan out a meeting agenda and questions.

2. Within the past year, I have accomplished X, Y, and Z. Based on positive feedback I have received from you, would you consider offering me a raise? It is beneficial to have a number in mind, but speaking from personal experience, your manager’s response may be higher than your own number. Start the conversation with this to see if a raise is possible. Focus on your accomplishments and do your research on what the market is offering for your position, location, and experience. Speaking about how you need a raise because of your increase in rent is an unfair guilt trip to your manager and an unprofessional request.

3. What steps do I need to take to be promoted to a management, lead, or other positions?

While some people may feel this question comes off as too assertive and eager, it can portray an employee that is driven, passionate, and motivated to take the next step. If there is an opportunity for promotion within your team, your manager can communicate the length of time or steps that need to be completed for a promotion. Additionally, there may be new positions opening up on another team that your manager may be privy too, but you are not aware of.

With the COVID-19 pandemic, employees may feel even more hesitant to ask for a raise in the midst of furloughs and layoffs. Keep in mind that the process of receiving a raise is a process and the steps you take today and the next few months can prepare you for the raise you are bound to receive in the next year. Some employees are already accepting more responsibility than ever as they are performing multiple jobs with budget cuts.

If you combine the answers you receive during the hiring process, training period, 1x1 meetings, and performance reviews, you are preparing yourself for the easy rather than dreaded conversation: asking for that raise.

Performance Reviews
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