Is there anything more nerve-racking than preparing to ask for a raise? You have been working diligently, sacrificing holidays and vacations, and going the extra mile for the employer. They should have noticed your dedication by now, but it doesn’t seem you’ll hear the long-awaited news anytime soon.
Finally, you decided. It is time to be brave and voice that question that makes you uncomfortable, although you know you deserve it. But you’re not the only one feeling that way.
For instance, even though they are satisfied with their employer, 52 percent of employees feel uneasy negotiating salary. On the other side, 30 percent are worried about losing their jobs, while 49 percent don’t want to be perceived negatively.
But no matter how nervous they were, 55 percent of those who asked got it. Don’t allow the fear to stop you. Find the right moment and go toward your goal. After all, if you don’t ask, the answer will always be no.
Since we know how frightening this can be, here is everything you should know about asking for a raise.
WHAT PAY RAISE CAN YOU EXPECT?
The salary increase depends on various aspects, including your responsibilities, job tenure, and skills. But when asking for a raise, you should know what to expect and the scope you should aim for.
After a year like no other due to the COVID-19 pandemic, you might wonder what is an acceptable amount more than ever before. According to SHRM, 2021 predictions show that the average percentage increase in salary budgets has not changed much since 2020.
Mercer’s insights from November 2020 hint the same. After pulling in the 9 percent of organizations that have indicated either no merit increase cycle or salary freezes, the median budget boost drops to 2.4 percent for merit and 2.8 percent for total increases.
Companies that struggle the most with the pandemic aftermaths plan to increase their financial plans by 1.8 percent.
THE TYPES OF A PAY RAISE
When asking for a salary increase, employees tend to wonder what type of a raise they want. Indeed, to leave a professional, confident, and self-assured impression, you should choose the right timing and reason.
You should back up your request with proper facts and accurate data to negotiate your compensation. Here are the most frequent types of salary raises.
COST OF LIFE ADJUSTMENTS (COLA)
Due to inflation, overall prices increase each year, making life more expensive. It is necessary to think about real wage increases and nominal increases when considering COLA.
A nominal salary boost is the increased amount of your compensation compared to dollars. For example, if last year you received $60,000 but this year you’re receiving $75,000 your nominal salary boost is $15,000.
On the other side, a real salary boost is how much your compensation has increased compared to buying power. Hence, COLA ensures that your pay aligns with the costs of living, maintaining your buyer power unaffected.
PERFORMANCE-BASED SALARY BOOST
Employees often earn a promotion with their hard work and stellar results. Hence, if you continuously put extra effort into your tasks, being innovative, and helping your colleagues, this is the raise you want.
PROMOTIONS AND ADDITIONAL RESPONSIBILITIES
How much you earn is associated with your job position, daily operations, and responsibilities. The higher you climb the professional ladder, the more competitive your salary. As a result, this type of raise comes with getting promoted and having more activities on your plate.
EQUITY PAY INCREASE
It is the raise that employers give to ensure all employees who have the same work responsibilities also earn the same, regardless of their gender, age, or race. However, this type of increase also happens when a new and seasoned worker receive the same pay or when a gig employee becomes a full-time hire.
In some cases, companies decide to give a new employee a raise after completing their training, internships, or probation period.
It is a review-based raise that ensures the work tenure and quality align while motivating you to keep the good work going.
RESEARCH YOUR COMPENSATION BEFORE APPROACHING YOUR MANAGER
Ensure that you have accurate information when preparing your I-believe-I-deserve-a-raise speech. It is what could save you from having your request declined or not having enough facts to support your exposition.
No matter if you believe your work is underpaid or you’ve been on the same salary level for some time, research the market before writing your raise request letter or setting up a meeting with the boss. Gather the data to analyze whether your compensation is realistic.
Use relevant websites to research how much people in your region with the same job title and a similar skill set are earning.
After you finished your research and collected all the information you need, it’s time to move on to the final stage.
Here are our top six tips on how to ask for a salary boost.