5 Important Steps to Take Before Asking for a Raise

You’ve put in your time, been the all-star employee, and have yet to receive the much-deserved pay increase from your employer. Does this sound familiar? I’ve been there — too many times.

I went the extra mile, remained loyal, and would go in when others didn’t show up, only to have an employer look baffled when I would leave because of the pay raises I never received.

I was hard-headed and didn’t think I should have to ask for a raise. But, as the years went by, I discovered it is critical to do if you want to earn more money. After having conversations with employers that didn’t go as planned, I also know the vital things you must do before you ask for a raise.

If it’s time to ask your boss for a pay increase, take these important steps to get in line beforehand to ensure you have an ace in the hole — just in case you need to play it.

What To Do Before Asking for a Pay Increase

Many people offer tips on the best way to ask for a raise, but what should you do before you schedule that meeting? Follow these key steps to ensure financial coverage just in case the conversation goes south.

1. Save an Emergency Fund

One of the best things you can do before you ask your employer to give you a raise is to save an emergency fund. While the chat may go great, and you may get that pay bump you deserve, you need to be ready for the fallout if it doesn’t. It’s important to always remain professional regardless of the outcome, but if you don’t get the raise you deserve, you may feel bitter and decide you want to jump ship and find another job. I’ve done this, so I know how fast that savings can dissipate.

It’s always best to secure a new job before leaving your current one. If there’s a gap before you start the new job, having money saved will help you manage financially during that time.

There is also the possibility that your boss may not like you asking for a raise. Sure, that’s not professional, but it happens. Most states, with the exception of Montana, permit at-will employment, wherein an employer has the right to terminate an employee at any given time for any lawful reason.

With that in mind, having an emergency fund is vital, regardless of your employment situation. Financial experts recommend saving 3-6 months of your basic living expenses at a minimum. These would include your house payment or rent, car payments, utilities, food, etc. If your basic living expenses are $2,500 a month, you should try to save between $7,500 and $15,000 in an emergency fund.

That sounds steep for most mortals, so aim for your first $1,000 and build from there. You can make saving fun and easy by setting up automatic transfers or participating in a money-saving challenge.

2. Update Your Resume and Have a Backup Plan

Another way to prepare before asking for a raise is to update your resume and have a backup plan. I’ve had my fair share of jobs and situations where things didn’t go as expected. As my mother used to say, “Hope for the best, but expect the worst.” It’s a weird way to try to be positive without getting blindsided by a freight train.

It’s best to keep your resume up to date anyway, just in case an awesome opportunity arises that you want to apply for. In fact, private and independent school Charter College recommends updating your resume every six months to “keep it fresh and ready.”

Websites such as Canva make it easy to create a resume that gets attention. When you update your resume, remember to keep it clean and concise and make your skills shine through. Don’t make it too long; hiring managers are busy rifling through hundreds of applications and resumes to pick the perfect match for the position, so one page is generally long enough.

Make an impact by highlighting your best qualities and skills. If you’re unsure of where to start or want to make sure you’re creating the best resume possible, follow our epic guide that outlines a step-by-step process for creating a resume that will get you hired.

While you’re updating your resume, perform a job search to see if there are any open positions you may want to apply for too. When it comes to your career, backup plans are vital.

3. Research and Compare Salaries

Are you getting paid what you’re worth? Salary calculators on sites like Glassdoor can assist you in determining your appropriate pay based on your experience and location. I used this tool and found out I was being paid $30,000 less every year than others in my same position were earning!

Of course, the amount of pay increase you should ask for will depend on things such as the company’s budget, your location, experience, and when they typically give raises. Utilize salary calculators and search for similar jobs in your area to see if what you are making is competitive with other employers.

Have you taken on more responsibilities in your role? If you have had an increase in work but not pay, that’s a sign it’s time for a raise.

A study by Indeed reveals that companies typically give an average of a 3%-5% pay increase. However, asking for a 10%-20% increase is common if your performance proves you are worth it. Research what your job pay should be and what the company is able to offer so you have a number in mind when you ask for a raise.

4. Write Down Your Achievements

The last thing you want when asking for a raise is to get nervous as you explain why you deserve it. To avoid this, take the time to write down your achievements and reasons why you believe you should have a salary increase.

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For example, if you constantly cover shifts when they are short-staffed or are the employee left in charge when the boss is gone, make sure to discuss that during the conversation.

Perhaps you have never been late or missed a day of work; you need to disclose that as well. As a reliable employee, you contribute a valuable asset to the company and deserve recognition for your hard work.

highlight your achievements while maintaining a humble attitude. Keep it brief, but bring it to light. Allow your manager to ask questions if they want you to delve deeper into each one rather than bombarding them with too much at once. Refer to bullet points to help you remain on point and prevent you from forgetting anything.

5. Time It Right

Timing is key when it comes to asking for a raise. You don’t want to ask when your boss is busy, or you recently had an issue at work. Make a request to schedule a meeting with your manager when the time is best for them. That way, you are not rushed and will have their full attention when you have the talk.

Another factor is how the company is performing. If they recently informed you that they are making budget cuts or had a drop in income, then it’s not the best time to ask for more money. However, you also need to do what’s best for you financially. If you find out that the company is struggling, you may want to consider looking for another job.

If you’re not quite sure when to ask, here are some of the best times to ask for a raise:

Your job responsibilities have increased: If you assume additional duties that are not part of your job description, it may be appropriate to request a salary raise.
You’ve been with the company for six months or more: Some companies may only give annual raises, but if you’ve been with the company for over six months and have done a stellar job, you may be able to ask for a pay increase. However, you should ask when the company typically gives raises and ask when it’s closer to that time to increase your chances of getting one.
At your performance review: If your company has reviews to discuss your performance, this can be an opportune time to request a raise. Of course, you want to ask only if you are performing well, and if you are, you can leverage that as a reason to justify a pay increase.

By choosing the appropriate time, you can increase your odds of getting a raise.

Things To Do To Increase Your Value as an Employee

We all want to earn more money, but in order to get a raise, you need to be a valuable asset to the company. Here are some ways you can increase your value to ensure you can continue to receive raises year after year:

Learn New Skills

Learning new skills is one of the best ways to increase your worth as an employee. You can ask your manager if there are ways to learn with the company or take courses in your free time that can take your career to the next level. When I worked at the bank, they offered certification courses that employees could take to improve their skills and increase their pay.

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If your company doesn’t have a program like that, you can check in to see if they offer tuition assistance for school or allow you to take courses online. You can even take career courses through Google Career Certificates to learn new skills. Once you complete your courses, you can let your employer know you are able to take on more tasks and utilize your new knowledge to earn more money.

Take Initiative

Is there an unassigned job that you see needs attention? Take initiative and perform the task if it’s within your capabilities. Something as simple as reorganizing the supply closet to make finding things easier shows a can-do attitude and that you are willing to take on more tasks and grow with the company.

If your manager requests that someone perform a certain task, try volunteering when you can to show that you have the ability to get things done when needed.

Have a Positive Attitude

Being stuck at a job forty hours a week can be a real downer if everyone you work with has a poor attitude. Sure, we all want to be rock stars sipping Piña Coladas on a beach, but we might as well make the best out of a bad situation while we’re there. You can boost morale by having a good attitude yourself. Plus, it makes work much more tolerable.

Having a decent attitude and being a motivator can help you and your co-workers succeed at your job, which can lead to more money.

When I worked as a loan processor, my coworkers told me about the bonuses we could get if we met our sales goals, but they said it was too hard to achieve. I looked at the numbers and saw that we could reach those goals, which would increase our income by $400 a month — $4,800 a year. We ended up hitting our goals 11 months that year and had a great time doing it.

A positive attitude pays off in the end.

Be Dependable

It may sound simple, but the best thing you can do to increase your value as an employee is to be dependable. When I was a manager, there was nothing worse than having an employee who was constantly late or calling out of work. That puts pressure on everyone else and lowers that employee’s worth.

As an employee hired to perform a job, punctuality and dependability are invaluable assets to the company. It’s also considered when the annual raises come around.

Get Your Ducks in a Row Before You Ask for a Raise

By taking these essential steps, you can properly prepare and increase your chances of getting a raise when you ask for it. Remember to always maintain a professional attitude, even if you aren’t given a raise. You can ask what it will take to have your salary increased if you like your job and want to stay. Otherwise, if you decide to leave, always give two-weeks notice; you don’t want to burn any bridges on your way out.

That way, if you need a job down the road, you have the option to go back in a pinch. Options are opportunities and also a safety net if there is an economic downturn or you experience a job loss.

You have shown dedication and deserve compensation for your hard work. So, get everything in order and schedule that meeting with your manager to ask for that raise.

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This post was previously published on Wealth of Geeks.

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