Why Now is the Time to Ask for a Raise
Now may be the perfect time to ask for a raise.
After the “Great Resignation,” the labor market is tight, and companies are recognizing the importance of rewarding employees who kept them afloat during the pandemic. In fact, companies are setting aside an average of 3.9% of total payroll for wage increases in 2022, according to a recent report from private research group Conference Board.
As the economy recovers from the pandemic, consumer spending is increasing and businesses are growing, yielding a high demand for workers (Meryl Kornfield, Washington Post). “The last time employees had this level of bargaining power was two decades ago,” said Bill Dixon, managing director at Pearl Meyer, a national compensation consulting company.
But for employees, “raising” the conversation of money is never easy. The following considerations can help you leverage your skills and value when asking for a raise.
Tip #1: Determine if Timing is Right for Your Raise
Timing may be good according to the global market, but before you ask for a raise, consider how long you have been in a role and whether you have met the goals of your position.
Generally, do not ask for a raise if you have been in a role less than six months. “First, command the tasks and responsibilities in your current role, and then start solving the problems that your soon-to-be self would be working on. The only way to effectively do this is through careful time management,” says Jenna Tanenbaum, the founder of the smoothie delivery service, GreenBlender.
Have you demonstrated high performance in your role? Do you go above and beyond in this role? It may pay to take on more responsibility before asking for a raise.
Tip #2: Communicate Your Value
Everyone would love it if their bosses noticed their every success and accomplishment. But from the point of view of a busy manager, this is just not possible. Employees need to communicate “wins” to managers and other colleagues on a regular basis.
Keep a list of specific accomplishments, similar to what is listed on a resume.
- Did you spearhead a project that resulted in increased revenue for the company? If so, how much?
- Did a customer compliment your service or rate you highly?
- What have you accomplished since your last pay raise?
- Did you think of an adaptation the company made during the pandemic? Be prepared with specific numbers and examples.
What makes you unique from everyone else? “It is rational to cite rising costs as justification for a higher salary, but compensation experts advise that the most persuasive arguments emphasize your skills and achievements as an individual, not the outside forces affecting everyone” (Kathryn Dill, Wall Street Journal).
Tip #3: Leverage Your Connection to the Company
When asking for a raise, keep in mind how the company benefits from your employment, instead of mentioning personal gain. Clearly communicate your understanding of the company’s mission and how you contribute. For example, how do you play an integral role on your team? Focus on what you can do together to continue to add value to company goals.
Be enthusiastic about the future when you discuss a raise and expect enthusiasm in return. “People want to see their value reflected in their paycheck, but also in the enthusiasm with which their requests are met,” says Alexandra Carter, director of the Mediation Clinic at Columbia Law School. If you do not get the reaction you feel you deserve, asking for a raise may leave you with the tough reality of how you are valued at the company.
As far as mentioning specific numbers, be sure to do your research. Sites such as Glassdoor and LinkedIn can provide valuable insight.
Artemis Consultants is happy to help you determine fair compensation based on today’s market. In some situations, our candidates realize that it is best to move to a new role to get the compensation they deserve.