How to Properly Ask For a Salary Raise or Hike or Increment

What is the Best Way to Ask for a Salary Raise

Most employees start thinking about discussing their salary when they sense a mismatch between their contributions to the company and the compensation they’re receiving. This feeling is completely okay. Things mostly go wrong in the motivation for initiating the ask for salary increment at work. Some employees wait until they start having strong negative emotions about it. Others feel hesitant about needing to ask for a raise at work to keep up with their finances and lifestyle.

How to do that? How to overcome such anxiousness to start talking about a hike in your salary? Here’s how- Step back to where you think the mismatches are, and start jotting down in a positive light. Check your mails; remember the instances where you had exceeded the key performance metrics in past. Performance areas you have shown improvement in. Gained a new set of skills. Incentive targets have you exceeded in your tenure with the company.

When to Ask for a Raise

In many companies, it is very convenient to talk about pay raises after spending six months or maybe a quarter. Some companies may conduct annual reviews with employees and then consider the raise to be given to the candidate. If you have completed one year, your employer might already be inclined to discuss your compensation hike with you or your manager.

A financial year-end could be a time when you can ask for a salary hike from your employer. Employers are likely to be hiring and making compensation plans for the next year.

When you see these opportunities coming up, make a note of it on your calendar and start planning for the conversation with your manager.

The second could be on the successful completion of a project. You can reasonably ask for a raise if you have just reached an impressive milestone and fulfilled an important goal. Before that, ensure you have compiled the details of your accomplishments, and relevant documents like emails and appreciation letters (if any).

How Much of a Raise Should I Ask For?

How much raise you should ask for depends on how long you’ve been with the company and what new things you have implemented that have affected the company’s books of account.

Usually, asking anywhere between 8-12% (in India) and 3-5%(across profile and industry in US) higher on your present salary is something viable. You can ask for more depending on your performance, company duration, and other merit factors. Keep all the relevant documents and emails in place when you come to negotiate your raise and be confident with the data. There are chances that an employer will reject your request; you can always lower your target.

What to Say When Asking for a Raise at Work

If you are wondering what to say while asking for a salary raise with your employer? We’ve got your back. Here are examples of how to ask for a raise and how you can initiate the conversation verbally-

“Hi, as you know I’ve recently completed a year with {{organization’s name}}, I’m excited to keep working towards the company’s goals in my current designation and grow my responsibilities toward the company’s goal. I’d like to discuss my salary, on that basis.

Based on my research, a salary increase of {XX%} is appropriate for my job title in this area, considering my time duration here, my years of experience, and my skill set.

From my last salary adjustment, I’ve worked on several crucial projects that have added significant value to the company. For instance, in {month}, I successfully executed {project name with details}. This consignment has moved the company to the next level. It makes me ready for a raise.

Isn’t it?”

Pro-tip: Avoid using words that could undercut your ask for a raise throughout your pitch. ‘Stating that you believe’, ‘feel’, ‘think’, ‘deserve’ are some words to avoid during this conversation. These words can make them feel you are not confident and sure if you really deserve it. Your words should not convey uncertainty but confidence. Indulge in the salary raise conversation and communicate your confidence with strong words that leave little room for negotiation.

How to Negotiate a Raise During a Performance Review

Sooner you ask for a raise, you may also expect some negotiations. You must listen carefully to how your manager or superior responds to your raise request.

If you feel intimidated at any point, show her/him evidence of where you excelled the mark to strengthen your ask. Quickly ask your questions to understand their thoughts and where they’re coming from. Phrases to begin such raise-related conversations can be “Can you tell me more about {project name}” and “What I’m hearing is…” These starts can create space in the conversation for more understanding. Here’s how to unfold a raise conversation-

Manager point of view:

Your manager might say, “thank you for the overview. While I appreciate your contribution, this time a raise of {XX%} is not possible for you.

Employee POV:

To which you can say, “From the research I’ve done, I’ve learned that {XX%} is a reasonable increase and appropriate with what I have contributed. Do you mind telling me why that increase isn’t possible?”

Manager:

“That amount is not something the company can give you right now. But it is something I could make a case for in the future.”

Employee POV:

“That makes sense. I believe by saying that you agree that my receiving a raise is well deserved but maybe not right now. How can I make that case clear to you soon?”

Examples of How to Ask for a Salary Increase

Here’s how to ask for salary increment from your manager:

It is always a good idea to put your request in writing first for a salary raise. However, you can prepare yourself well before going to the authority for a salary hike.

Do your salary research

Research about the realities of today’s job in the market. With your comprehensive research, you will be able to understand what a competitive wage is appropriate for a candidate in your position.

Pick the right time for discussion

Pick the right time to speak about salary raises as per your company’s rules, policy, and cycle. Check your employee handbook for guidelines.

Also pay attention to recent layoffs and hiring freeze, and do not hesitate to bring this conversation on the desk.

Put a request mail before the verbal conversation

Email your manager that you’d like to connect to review your compensation stating- “Could we have a short discussion to review my salary?” or “Kindly devote a few minutes to our next one-on-one meeting?” You can also write, “As we’ve discussed my wish for an additional salary, I’d like to request a salary increase of XX%.

Back it up with the company’s revenue earned

Numbers are convincing when you make a sales report. Why not use them for salary increases too? Never hesitate to mention the figures company is making in terms of money saved, revenue earned, and services improved with your responsibilities taken on.

Appreciate for the consideration

Always remember to thank your manager for supporting you in your role and throughout the project and for considering your increment request.

Once your conversations are done, ask for more clarity on what could be done next for a future salary increase?

Putting your request to your manager is just the first step, if you make the ask, it can pay dividends.

Some companies might consider the candidate’s one-year completion or financial year-end. Some companies do it without being asked and some may wait for your ask for salary increase letter.

If Boss Says “No” to a Raise, Negotiate

There’s no quick end to a raise request when your boss says, “there’s no money.” You don’t have to give up so easily, because there are alternatives to work around this problem and you can learn how to negotiate a raise with a resistant boss.

Do your research

You can dig into the company’s current financials and tell your boss to combat the claim that “there’s no money.”

Also check your employer’s policies in detail. Many companies only provide raises once a year. Ensure that, before you ask for a raise.

Build a case for yourself

You need to communicate effectively about your efforts and the benefits you bring to the company are well deserved for a raise. Research and define your contribution and justify your ask with proof.

Know your best alternatives

One of the best ways to combat your boss who responds “there’s no money” is to have a backup plan which includes a list of other alternatives you can take in place of pure monetary compensation.

Make an agreement

Before you end the raise discussion, politely ask for an agreement and acknowledgment for your efforts. “Let’s make an agreement and business commitment up front to bring in X money for an X raise by the end of the year,”. Adhere to that and prove it with results.

How to Ask for a Raise in an Email or Letter

Writing an email is the best way to ask for an appraisal. Do not start the mail with the numbers and statistics of your achievements. Start with a formal gesture and highlight the changes you and your team have made in the past that brought achievements and improved capabilities to the company.

Check out the below appraisal request on how to ask for a raise via email. Paraphrase the letter in your own words and tone as per your suitability.

Subject Line – Write a suitable subject, such as ‘Request for salary appraisal’.
Start the mail –

Hi {employer’s name/ manager’s name},

I have enjoyed and had a wonderful experience working in {organization’s name} in the past {no of year/s}.

I have learned a lot while being in the {department name}. I also feel that with my contribution, we have cracked great deals which have recognized the success of the team as well as the company.

In the past year alone, I have been assigned {project name and achievements and highlight them}, along with additional responsibilities like {add data} .

Given the additional responsibilities, I bring value to the company. I no longer feel that the pay I am receiving reflects the efforts that I am making for the department. I believe my current remuneration package is way below my expectations, considering my contributions.

I would hereby request an increase of {XX%} to bring my current salary to par with the industry average.

I look forward to discussing this further.

Kind regards,

{Your Name}