Author Topic: Advice on how to ask for a raise?  (Read 1660 times)

julia

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Advice on how to ask for a raise?
« on: November 28, 2019, 07:22:15 PM »
My partner is underpaid and the company promised him a certain wage after a year. A year has passed and they haven't approached him about bumping the wage. He has made several improvements and saved the company a lot of money over the last year and thus he wants to ask for a higher wage increase than initially promised: he wants a 14% wage increase. He's a mechanical designer.

He wants to ask tomorrow. What we are having trouble coming up with are counterarguments if his boss denies him the wage increase for reasons such as 'we can't afford it'.

So far we've come up with the argument that he's probably saved them the amount of the 14% increase in the last year from streamlining a bunch of processes and improving communication between departments.

What are some other counter arguments?
Or if you have ideas of other excuses the boss may come up with and possible counter arguments, that would be helpful.

Thanks everyone!

Edit: He is paid hourly so it is better to say the total sum a year that he wants? Or the hourly wage that he wants? Psychology majors help me out!
« Last Edit: November 28, 2019, 07:27:49 PM by julia »

jlcnuke

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Re: Advice on how to ask for a raise?
« Reply #1 on: November 28, 2019, 07:57:32 PM »
The only arguments available are "I'm worth this much money because of this, this, this, and this." At least one of those items better be showing what market wage is for him in that industry and location with his level of experience though, or they won't be very convincing. Saving a company $20k/year doesn't mean you're worth $20k more per year, it means you did your job generally.

If he can't find someone else willing to pay him the extra money, he isn't worth it. So he needs to be prepared to go elsewhere if he doesn't get what he's asking for (and if it's significantly more than he was told initially, that should be the plan so I'd have another job lined up before the conversation).
« Last Edit: November 28, 2019, 07:59:27 PM by jlcnuke »

FINate

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Re: Advice on how to ask for a raise?
« Reply #2 on: November 28, 2019, 11:10:19 PM »
What jlcnucke said.

Generally speaking, and within certain statistical ranges and averages, people get paid market rates. This is specific to job, job level, and locale. Websites like salary.com are useful to get a sense for what he's worth.

The only thing worse than being underpaid is being overpaid. I'm serious. Being overpaid means poor performance reviews, and being first on the chopping block when there are cuts. This will hurt a career more than being underpaid for a time.

If he's greatly exceeding his current job level then he should start thinking about promotion, which should be followed by a modest raise but with more room to increase pay w/o getting into overpaid territory. But depending on the industry, there may be other folks in the queue waiting for promo so he may have to perform at the next level for a year or two (putting in his dues, so to speak).

If, on the other hand, it's a simple matter that he's underpaid for his job and level, then ask for a raise to be in line with industry norms. If this doesn't work then have another job lined up that pays market rate. I'm not a fan of ultimatums and counter-offers (would just jump ship to the higher paying job), but that's up to him to decide.

He's paid hourly, so focus on his hourly rate. Businesses are very methodical about these things, psych games aren't going to help.

imadandylion

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Re: Advice on how to ask for a raise?
« Reply #3 on: November 30, 2019, 01:05:18 PM »
- Ask for a little more than what you're aiming for, especially since they'll  mostly likely want to counter. Make sure to do a good job of researching market rate, because you could still end up being underpaid even if it's more money than you were getting paid. I have colleagues who barely ask for more money because they are not willing to do the research and lack confidence in themselves, and sure, they may get a small raise. But consider this - because I asked for more money, I get paid as much as 25k more than them for doing the same job. Sad, but true. Also, contrary to popular belief, websites that people often advise to go for information about salary are not accurate, but talking to other people in the industry or recruiters will help you get a snapshot of what the generate market value is for the position/title and years of experience.

- Confidence is everything. Interview at other places, especially since getting job offers and negotiating is always a good practice. You'll want the ability to accept another offer if you don't want to accept being paid at your current rate.

- Speaking in compensation in terms of hourly or annual rate doesn't actually matter. Everyone I know who gets paid hourly just uses the annual rate. So do I. When it comes down to paper work, they're obviously just going to convert it to the hourly rate.

- The case for a raise is more compelling when you go above and beyond your job description vs. successfully doing your job description. Sucks, but true. That's why you should negotiate for as much base compensation and other benefits as possible when you initially get a job offer.

- Any employer that comes up with some line about, "We can't afford it," means they're not going to budge and they don't value you, so don't waste any more time trying to convince yourself of anything. If you could be compensated much great for spending the same amount of time working and doing the same job duties, what would you choose? Have the confidence to walk away. This isn't about loyalty. At the end of the day, the only person who cares the most and is responsible for your wellbeing is you. No matter how chummy you are with your office or your boss, do not let any personal relationships cloud that fact that they do not ultimately care about your bottom line.

- When referring to compensation, stick to a figure or percentage and don't use ranges. Don't talk about the "minimum" of what you'd be "OK with." Just say what it is you want. This may be obvious, but I'm surprised about how many people actually make this mistake so I feel like it had to be said, just in case.

Good luck!

- Editing to add - It's great to bring up the raise conversation any time, but keep in mind in the future, if possible, make the most out of performance reviews. This is the best time to build your case and discuss a raise - and they'll be expecting it. If you know your office has annual or biannual performance reviews and the time comes and it doesn't happen, ask about it. I'm also surprised about how many people think, "Oh, maybe they're just busy or they forgot." Ask the question, put it out there, and make it happen.
« Last Edit: November 30, 2019, 01:10:00 PM by imadandylion »

SunnyDays

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Re: Advice on how to ask for a raise?
« Reply #4 on: November 30, 2019, 02:44:44 PM »
As a former psychologist, I do think it would be better to ask for a certain amount more per hour, because it sounds like a lot less than an annual amount, and unless the boss actually calculates it right then, it's harder to say "we can't afford it" without more consideration.  My response to that, in any case, would be "that's all I needed to know," which will make them think this was maybe an ultimatum, and they're going to lose you.

Freedomin5

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Re: Advice on how to ask for a raise?
« Reply #5 on: November 30, 2019, 03:42:36 PM »
As a former psychologist, I do think it would be better to ask for a certain amount more per hour, because it sounds like a lot less than an annual amount, and unless the boss actually calculates it right then, it's harder to say "we can't afford it" without more consideration.  My response to that, in any case, would be "that's all I needed to know," which will make them think this was maybe an ultimatum, and they're going to lose you.

I like this advice.

Also, have him brush up his resume and be ready to start sending it out of he does get that response. Then instead of feeling shut down by the no, it’s simply a spur to move to Plan B. When I asked for a raise, I was told that it was not fair to the other employees at my pay grade and if I wanted to make more I could work more hours. I said, “Thank you, I understand,” and immediately started looking. As soon as I found something, I turned in my resignation. And suddenly, my current company was able to find the funds to almost double my salary. That told me I had been woefully underpaid and that the company played games instead of following a standard compensation process. The company’s offer matched but did not exceed the new offer, so I said, “No thank you.” That was a year ago, and I haven’t regretted it one bit.

Sibley

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Re: Advice on how to ask for a raise?
« Reply #6 on: November 30, 2019, 03:47:18 PM »
Askamanager.org

Good advice for all things work.

clarkfan1979

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Re: Advice on how to ask for a raise?
« Reply #7 on: November 30, 2019, 09:05:05 PM »
The only arguments available are "I'm worth this much money because of this, this, this, and this." At least one of those items better be showing what market wage is for him in that industry and location with his level of experience though, or they won't be very convincing. Saving a company $20k/year doesn't mean you're worth $20k more per year, it means you did your job generally.

If he can't find someone else willing to pay him the extra money, he isn't worth it. So he needs to be prepared to go elsewhere if he doesn't get what he's asking for (and if it's significantly more than he was told initially, that should be the plan so I'd have another job lined up before the conversation).

+1

 

Wow, a phone plan for fifteen bucks!