Show Me the Money! Tips for Negotiating a Raise

I received this great article from my email list from Doostang that I would like to share with everyone.  I've always had trouble approaching employers for a raise, and I sometimes still do.  Although I'm now mainly active on LinkedIn, I still have a soft spot for Doostang.  This professional network was where I found my current job.

Doostang News March 22: Show Me the Money! Tips for Negotiating a Raise
You can also read this in full on The Doostang Blog.

Asking for a raise can be a bit tricky. There’s that sentiment akin to asking your parents to tack on a few extra bucks to your allowance; and then there’s the walking-on-eggshells feeling you get in trying not to overstep your boundaries with your boss. But asking for a raise is OK, and it’s a two-way conversation that you can navigate tactfully if you keep a few things in mind:

Do Your Time

Although rightly deserved in some cases, a raise is not going to present itself on Day 2, no matter how convincing you are in presenting your case to your boss. The fact is, in order to rationalize paying you more money for the same work, an employer must see that you have made progress and remained loyal to the company. A company can find any old schmo off the street to do the work for a starting level salary. But go above and beyond, and they may be inclined to attach a few more dollar signs to your value.

Determine Your Reasons

In order to present a convincing case to your boss, it helps to understand why you are asking for a raise in the first place. Is it because you’re living expenses have gone up? Are you expecting a new addition to the family? Don’t misunderstand; simply desiring a higher salary for your excellent work is a completely valid point. But if you can present these motivations to your employer, you may find that they’re more likely to side with you on this one.

Be Reasonable

Of course you’re going to sound like a child when you put forth the whole “I want a million dollars” offer. That, and you’re going to get shut down very quickly. In order to be taken seriously, present a sensible figure to your boss, one that is on par with the work that you complete. This will get you much farther in negotiating with you boss.

Practice Savvy Negotiating Tactics

Alright, that said, you may want to present a number to your employer that is a bit higher than the actual raise you wish to receive. The boss didn’t get to where he is by being a pushover. He’ll likely try to bargain you down, trying to take you at your bottom limit. Before you propose anything, then, figure out what your bottom limit is. Give him a number that is higher than this – but not too high – and once negotiating begins, don’t allow yourself to go below this bottom line. Hopefully, the two of you will settle on something in the middle.

Understand Your Value

Logically, a company wishes to pay as little as they can while still employing reliable employees who complete great work. At the same time, their great wish is to keep their workers happy, which is equally – if not more – important to business. You may view a large corporation powerful and yourself lucky, in that they decided to give you a job in the first place. But it’s crucial to realize that you are equally as vital to them as they are to you. You are valuable and they know it. If you’re doing a great job, bring this up in a negotiation. Present numbers, graphs, or work samples when you go in to speak to your boss. Tell them that you’re worth it and show them why. Make them an offer they can’t refuse.

Keep these 5 things in mind when negotiating with your employer and you'll be more likely to get your point across, make a favorable impression, and walk away with what you deserve.