How to Properly Ask for a Pay Raise and What to do if You’re Denied

You know that time of year when it comes around. It’s the date that marks the anniversary of your start with the company you’re employed by. This could be a one year anniversary or it may mark a decade of loyal employment.

Whether the former or the latter or somewhere in between, there’s likely one common thing on your mind. Am I going to get a raise? 

If you’re lucky enough to work for a conscious company they might remember your big day as well. You’ll receive a thank you letter or email, a small gift or — if you hit the jackpot — you might be offered a raise without ever having to ask!

Unfortunately, it’s not always this easy. The good news is, as long as you’re prepared, informed, and using good judgment, there’s often no harm in asking for the raise you think you deserve.

Show up Prepared When Asking for a Pay Raise

We all know the feeling. Gathering the courage to make a case for the compensation you desire is nerve wracking. Do your best to not worry too much about making this request. If you demonstrate your value as an employee, show up well prepared, and work in a fair and healthy environment there’s likely no harm to be done by asking for a raise.  

Worst case scenario, your request for a raise is denied. 

We’ll worry about that in a minute. In the meantime, let’s consider how to effectively prepare to ask for a raise. 

• If you’re expecting your employer to be conscious and considerate of your needs, don’t forget to do the same for them. Do some company research before waltzing into your manager’s office and proclaiming your worth is more than your compensation. The company handbook is a good place to start. If your place of employment has a standard practice for granting raises, it should be listed here. Follow it closely. 

• Dig into market research — assure it’s applicable to your region as pay varies by region for similar positions. The idea is to know the salary range that your position or similar positions garner. Getting a realistic idea of this number based on online statistics can be difficult. Try reaching out to your network and speaking with other people in the industry. (i.e., What would you expect an appropriate salary to be for x position?) Or reach out to a local recruiter — they often have access to up-to-date, reputable statistics on this information. 

• Know who to ask and when the time is appropriate to approach them about a pay raise. Hint, this may not be your direct manager or supervisor. Do your research before making a case to someone who’s unable to help you. 

• When you’re certain that you’re approaching the right person, assure it’s the right time as well. Don’t approach this topic with your manager while she’s in the midst of a tight deadline or when your recent performance has been subpar. 

• When the time is right, ask if you, “can schedule a meeting to discuss your compensation.” Be transparent. Nobody appreciates being blindsided. If your manager hasn’t had time to prepare and consider your raise, the answer may likely be no. 

With your company’s procedures, the regional market pay rate for your role, and when to approach your manager in mind you can determine if it’s appropriate to request that raise. 

What to Include in Your Request When You Deserve a Raise

We’re not done with preparation quite yet. Preparation + Opportunity = Success. Now’s the time to build a case for yourself. 

• Are you regularly taking on more responsibility than what was initially stated at your current pay rate in your job description? If so, be sure to list these additional responsibilities in your request. 

• What have you accomplished that helped your company improve productivity, cut costs, boost staff development, or offer customer service that excelled beyond the call of duty? 

• What game changing, successful projects did you play an integral part in? 

• Are you working daily to reach above and beyond what’s required of your role? 

• Do you have a specific rate you’d like to see your pay raised to? You don’t have to say it right out the gate, but be sure to have a number prepared. Chances are you’ll be asked what you’re expecting.

These are all premises that your boss may find fitting for a raise. Document these occurrences in a short, bulleted list. Include data and statistics if possible but do your best to keep it short and sweet. 

A general rule of thumb is that if you’ve been at the same pay rate for over a year and you demonstrate quality work it’s likely acceptable to ask for a raise. 

What Not to Do When Asking for a Raise

Emotional intelligence and common sense will all come into play when asking for a raise. If you’ve read this far and don’t think you’re ready to build a winning case for the raise you want, hold off for now. 

Furthermore, if your company has fallen on tough times, now may not be the time to ask for a raise.

 “One in three U.S. companies are lowering their projected salary increases for 2021 amid concern over weaker financial results and budgetary restraints in the wake of the pandemic, according to a new survey by leading global advisory, broking and solutions company, Willis Towers Watson.”

Above all, keep in mind that you’re asking for a raise based on the value you offer. “My rent has increased by $200 a month.” is not going to convince your employer to offer you a raise.

How to Respond to a Rejected Salary Increase

If you step out of your comfort zone and ask for a raise remember that there’s a chance you may be met with disappointment. 

You can do your best to mitigate this disappointment by studying your company’s pay structure ahead of time. Some companies (in the U.S.), by law, provide around a 3% annual “cost of living increase” raise to all employees. If you know your companies already working within this structure, it could be less likely that you’ll be granted an additional raise.

Furthermore, some companies offer annual raises at the end of the fiscal year or around employment anniversaries. If this is the case, refrain from asking for additional raises at another time. What can you do in this scenario? Prepare your case and desired salary a month or so before annual raises are given out. Presenting this to your managers ahead of time can increase your chances of reaching your ideal salary.

Familiarizing yourself with your employers standard operations can help you avoid facing the potentially awkward moment of being denied a raise in the first place. 

What to Do When All Else Fails and You’re Denied a Raise

Sometimes all the preparation in the world isn’t enough to get us what we want! And that’s O.K. If you’ve made a strong case for why you deserve a raise and have been denied, keep a cool head. This isn’t the be-all-end-all. 

• Turn this “loss” into a learning opportunity. Ask your boss, “Can you offer me some insight as to what it would take for me to earn a raise in the future?” 

• Whatever you do, don’t lose your cool and threaten to quit. Politely accept the decision and, if your inability to secure a raise warrants a change in scenery, continue to go about your search quietly without causing a scene. Threatening to quit can easily go wrong if your employer decides to take you up on that offer. 

• If you don’t immediately receive a firm yes, that doesn’t mean the answer is no! Be sure to ask your manager if you can set up a specific date and time to revisit the conversation. 

Being denied your request for a raise isn’t the end of the world. Move on and keep doing the great work you do — that raise is likely to come down the road. Otherwise, you may take this as a sign that it’s time to begin exploring other opportunities.

If you’re failing to meet your salary needs in your career it’s always acceptable to respectfully resign. When you find your next opportunity, consider negotiating your desired salary during the hiring process. 

This can help save you from having to prepare another request for a raise any time soon. 

If you need assistance uncovering your perfect placement or negotiating salary requirements, HireUp is here to help. Fill out the form on our contact page and get the ball rolling. We’ll reach out shortly to schedule your free Discovery Call.